1. 1 We want to be like Latvia! What Israel needs to do to improve its telecommunications infrastructure Hank Nussbacher hank@mail.iucc.ac.il IUCC – Israel InterUniversity Computation Center Feb 2012

2. 2 We want to be like Latvia! http://www.netindex.com Home surfing speeds – Jan 2011

3. 3 We want to be like Latvia! Israel vs Latvia IsraelLatvia Population7.8M2.2M Size22,000 sq km64,000 sq km GDP (PPP)$235B$32B GDP (PPP) per capita $30,000$14,500

4. 4 We want to be like Latvia! Israel ranked 52nd with 7.45Mb/sec download And ranked 110th in upload speed of 1.09Mb/sec Jan 2012

5. 5 We want to be like Latvia! What are critical infrastructures?

6. 6 We want to be like Latvia! We invest in rail infrastructure

7. 7 We want to be like Latvia! We invest in water infrastructure

8. 8 We want to be like Latvia! 10BNIS in 2012 for roads & rail! From Israel gov’t 2011-2012 budget

9. 9 We want to be like Latvia! Israeli gov’t investment in telecommunications l2012 – 0NIS l2011 – 0NIS l2010 – 0NIS l2009 – 0NIS l2008 – 0NIS l2007 – 0NIS l2006 – 0NIS l2005 – 0NIS

10. 10 We want to be like Latvia! Europe invests in infrastructure as well

11. 11 We want to be like Latvia! EU - Connecting Europe Facility 2014-2020 EU budget

12. 12 We want to be like Latvia! Why hasn’t Israel invested in telecom infrastructure? lOne can see roads and rails – one can’t see underground optical lines lOfficials in משרד האוצר forgot about it l Gov’t paradigm: Israeli companies compete and invest in telecom infrastructure so no need to invest lNo אבא like in משרד התשתיות l Ministry of Communication is small and underfunded

13. 13 We want to be like Latvia! One can see Israel lit up at night – just like in Europe

14. 14 We want to be like Latvia! Academic Dark Fiber Networks in Europe Israel is a wasteland

15. 15 We want to be like Latvia!

16. 16 We want to be like Latvia! The current Med area status 10 year monopoly

17. 17 We want to be like Latvia! In 2012- 2013 Africa will pass Israel in int’l capacity and Internet connectivity

18. 18 We want to be like Latvia! Med-Nautilus lMonopoly for 10 years lForeign ownership by Telecom Italia and Telefonica lCritical Israeli infrastructure lTime to repair for cut cable is 2-3 weeks

19. 19 We want to be like Latvia!

20. 20 We want to be like Latvia! Operational 1Q 2012 - but will this reduce the costs for int’l b/w?

21. 21 We want to be like Latvia!

22. 22 We want to be like Latvia!

23. 23 We want to be like Latvia! "לדברי נטוויז'ן וסמייל, שתיהן קיבלו הצעות מחיר מטמרס, שאינן מתקרבות למחירים שמציעה נאוטילוס. "

24. 24 We want to be like Latvia!

25. 25 We want to be like Latvia! My solutions within 2 years

26. 26 We want to be like Latvia! Int’l: Subsidize new int’l cables lIsrael built Route 6 via BOT – Build Operate Transfer l According to Kvish 6 site – Israeli gov’t paid about 1BNIS and Kvish 6 invested 5BNIS lBezeqint investment - $100M lTamares investment - $20-30M lWhy can’t Israeli gov’t subsidize these investments? l Cost - $5M/yr or 40MNIS over 2 years

27. 27 We want to be like Latvia! Nationally (part 1) l1 st the infrastructure lOffer a “perk” known as תמריץ lIf Bezeq or HOT can connect 100,000 customers at 50Mb/sec or faster for less than 50NIS/month within 2 years then the Israeli gov’t will give them each 50MNIS l1000NIS subsidy per subscriber lCost = 100MNIS over 2 years

28. 28 We want to be like Latvia! VDSL2 UFI

29. 29 We want to be like Latvia! Nationally (part 2) l2 nd – the ISPs lOffer a “perk” as well lInt’l b/w will be much cheaper due to new cables l Subsidize b/w ISPs buy via int’l undersea cables lGov’t needs to cap ISP costs at 50NIS/month for 50Mb/sec lCost over 2 years – 50MNIS

30. 30 We want to be like Latvia! Nationally (part 3) lIsraeli gov’t has to force national carriers (Bezeq, Cellcom, HOT, Partner, IEC, Railways) to sell dark fiber to ISPs lUse pricing from OECD to determine what fair price would be for dark fiber per km l Should be around 200Euro/km/month

31. 31 We want to be like Latvia! The future lWe can achieve 50Mb/sec on average at a cost of 100NIS/month l Cost per household lIsrael would have to invest less than 190MNIS one-time (over 2 year period) in telecom infrastructure l Less than 2% of transport infrastructure for 2011

32. 32 We want to be like Latvia! Till then … DownloadUpload GDP - $2200/person GDP - $30000/person