1. Parallel Session 2 - Business Models & Return on Investment
5/29/2019

2. Parallel Session 2 – Business Models & Return on Investment
This session will examine approaches for governments and local authorities to consider when calculating the "Return-on-Investment" of investing in High Speed Broadband. This includes social, as well as economic returns.
The role that communities and public-private-public partnerships can play in developing and paying for broadband solutions will also be examined.
Explain why public non-profit broadband companies, established at county or regional level can help to deliver sustainable high speed broadband.
What role could the local communities (in towns or villages) in Donegal play in helping to deliver High Speed Broadband?
Are there models in existence which can measure the social or community return on investment of deploying HSB networks in rural areas, especially in cases where the business case is not clear?
Which financial models do you think better fit into the current scenario? Which are the assumptions or considerations to bear in mind under this approach?

3. Parallel Session - Format
Session = 2 hours (start 10:20)
10 Minute Presentation by each Expert
4 X 10 mins. per Expert = 40 mins. (finish = 11:00)
Answers from Audience to Gaps in Expert Knowledge
Discussion between participants & audience = 50 mins. (finish =11:50)
Agreement on Conclusions 30 mins (finish 12:20)
Rapporteur will record main points for reporting conclusions
Facilitator/rapporteur will make report after lunch
Component 3 activities By Jose Manuel San Emeterio & Anne-Mari Leppinen
5/29/2019

4. Explain why public non-profit broadband companies, established at county or regional level can help to deliver sustainable high speed broadband.
Answer 1
Public companies have a regulatory role and infrastructure provision expertise ex roads.
Because public sector cares for society, not primarily interested in profit, should drive a quality of life agenda.
Already utilise public funds to ensure services which are essential to quality of life in a region. They would be an enabler for bottom up provision.
Answer 2
Could work as the infrastructure provider, it could act on commercial terms, develop well executed plans.
Could be the lead partner in a Limited company to seek a longer term commercial return than a service provider would.
They can develop and retain control of infrastructure and leverage public funds.
They can ensure competition for customers if they are removed from service provision.
50% of broadband usage in a location can be by the public sector, by investing it can save public sector 30-50% on costs with greater socio economic efficiency and profits ex in the area of health.

5. Must elect an appropriate champion, co-ordinator and planner.
Explain why public non-profit broadband companies, established at county or regional level can help to deliver sustainable high speed broadband.
However there must be a comprehensive overview role somewhere in the model. Good planning must be followed with good management otherwise quality and control will suffer.
Public sector as an enabler, not a service provider. Municipalities should not sell the infra, they should retain control to ensure a monopoly does not happen.
Follow Up Action 1
Must elect an appropriate champion, co-ordinator and planner.
Follow Up Action 2
Must be an entity with a complete understanding of the restrictions and legislation involved.
Component 3 activities By Jose Manuel San Emeterio & Anne-Mari Leppinen
5/29/2019

6. What role could the local communities (in towns or villages) in Donegal play in helping to deliver High Speed Broadband?
Answer 1
Local communities can act as an instigator. They can initiate local community companies, for example structured as a co-op, the local region/municipality could finance it with local communities delivering the local networks. Local communities are essential in determining, driving and fostering demand aggregation, providing data for a business case through local drives to assess needs and gain customers
Answer 2
Local communities have latent skills and can be labour providers, for example Village Network Initiative - Sweden, ex farms come together put in own infrastructure, carry out own labour. Connect to main infrastructure. Local communities can be local delivery agents.

7. What role could the local communities (in towns or villages) in Donegal play in helping to deliver High Speed Broadband?
Follow Up Action 1
Get the local community to push for action, be the demand element of the overall plan.
Follow Up Action 2
Enable local communities to use their latent skills and free labour. Help them understand that this can work,
Component 3 activities By Jose Manuel San Emeterio & Anne-Mari Leppinen
5/29/2019

8. FTTH costs and benefit calculation
Un-captured values
Roll-out cost
Telco return
Internet service revenue Telephony service revenue TV service revenue

9. Direct economic activity
Very high access speed
New infrastructure
Direct economic activity
FTTH deployment
increased use
of ICT services
ICT competence
HR pool
Customers for
new services
ICT Maturity:
digital natives
lower prices
for services
Ease to do
business
Increased
market value
Functional
separation
new business
model
New/better
services
Sensor
networks
reduced traffic congestion
Video surveillance
Power grid efficiency
learning
curves
Competition
between SPs
reduced
environment
impact
lower barriers
True cloud
computing
productivity
Distance working
low upfront investment
for NP and SP
Videoconf
Telepresence
Profitability
of NP and SP
Of PIP
higher
employment
Virtual labour
mobility
Perceived
quality
of life
e-learning
HD and 3D TV
VoD
Network
gaming
reduced forced
migration
lower publ spending
higher tax revenue
E-health
RoW
revenues
E-government
Education
quality and cost
transparency
in PA
efficiency
Democracy
strengthened
corruption
discouraged
lower burden
of bureaucracy
Logistics, prod,
management
GDP
New ICT and traditional
companies
Dev. of new
technologies
entrepreneurship

10. Are there models in existence which can measure the social or community return on investment of deploying HSB networks in rural areas, especially in cases where the business case is not clear?
Answer 1
Not yet modelled at EU level, dependant on legislative conditions of location. No papers for HSB. First comprehensive study at EU level is by Analysis Mason.
Answer 2
Municipalities have developed their own infrastructure in Sweden, utilised tax payers money to keep business and socio demographically productive people in the area. Roll out cost vs revenue generation – will never happen. Uncaptured values are a means of measuring other benefits to society. Quality of life is also an important factor - society much happier as have a good quality service, efficient, a pleasure to use. Have measured higher employment, value for customers, public savings in communications, within 5 years

11. Are there models in existence which can measure the social or community return on investment of deploying HSB networks in rural areas, especially in cases where the business case is not clear?
Follow Up Action 1
There is a need for greater modelling. There is a gap in modelling in this area, pilot could be developed in the county to feed into regional, national and EU decision making.
Follow Up Action 2
Public sector should have a role in increasing quality of life, can pay for most of investment with societal connection and returns in terms of health, quality of life etc. Need an organisation to drive forward mapping, measurement and planning.
Component 3 activities By Jose Manuel San Emeterio & Anne-Mari Leppinen
5/29/2019

12. For Donegal Bottom Up model as used in Sweden may be a good option.
Which financial models do you think better fit into the current scenario? Which are the assumptions or considerations to bear in mind under this approach?
Answer 1
For Donegal Bottom Up model as used in Sweden may be a good option.
SF grants most likely solution where business case not clear, infrastructure sharing is crucial as such public involvement is necessary. Could use a Neutral network model, passive infrastructure provision provided by public sector, who already are infrastructure providers, road, Right of Way etc. Service providers work solely with customer, removed from provision of infrastructure and as such this ensures competition and greater savings for the consumer.
Answer 2
Could wait for 4G roll out and then rely on fibre provision at Base Station.

13. State aid might be an issue in rolling out local schemes.
Which financial models do you think better fit into the current scenario? Which are the assumptions or considerations to bear in mind under this approach?
Follow Up Action 1
A Masterplan must be developed to connect everything involve operators, public sector provide infrastructure, operators will want to use, competition benefits customers.
Follow Up Action 2
Government needs to remove all barriers, planning, local authority funding etc. Municipalities do not control essential service provision Ireland, ex electricity provision, this is a semi state function therefor the sharing of infrastructure would have to be a national decision.
State aid might be an issue in rolling out local schemes.
Long term lending will need substantial public support and intervention.
Large scale roll out will present significant delivery and administration challenges.
Component 3 activities By Jose Manuel San Emeterio & Anne-Mari Leppinen
5/29/2019