1. G.Pūras Development of Broadband markets Communications Regulatory authority of Lithuania Electronic communications department www.rrt.lt Disclaimer: The views, opinions or positions expressed in this presentation are of my own and do not necessarily reflect the views, opinions or positions of Communications Regulatory authority of Lithuania 2013.08.29, Latvia Broadband markets LT 1 psl

2. G.Pūras Outline 1.Broadband markets in Lithuania (statistics) 2.New EU initiatives (EC rec.; Regulation) 3.Broadband promotion. Lithuanian approach: -EU context; -Regulatory impact on NGA (main drivers) 2013.08.29, Latvia Broadband markets LT 2

3. G.Pūras I. Broadband market developments in Lithuania 2013.08.29, Latvia Broadband markets LT 3 psl

4. G.Pūras Market maturity? 42013.08.29, Latvia Broadband markets LT

5. G.Pūras Technologies: towards fibre 52013.08.29, Latvia Broadband markets LT

6. G.Pūras Technologies in EU: different story 2013.08.29, Latvia Broadband markets LT 6 DSL (LT) DSL (EU)

7. G.Pūras Increasing speed 7 Data uploadData download 1.Hon Kong28,52 Mbps1.Hon Kong42,41 Mbps 2.South Korea28,15 Mbps2.Singapore36,01 Mbps 3.Lithuania26,83 Mbps3.Lithuania35,06 Mbps 4.Singapore20,01 Mbps4.Luxembourg34,51 Mbps 5.Latvia18,74 Mbps5.South Korea33,73 Mbps 2013.08.29, Latvia Broadband markets LT

8. G.Pūras High fibre penetration 82013.08.29, Latvia Broadband markets LT

9. G.Pūras NGA (>30 Mbps) take up 2013.08.29, Latvia Broadband markets LT 9

10. G.Pūras - Draft EC recommendation on non- discrimination and costing - EC proposal for Regulation on cost saving measures to promote BB investment II. New EU initiatives 2013.08.29, Latvia Broadband markets LT 10

11. G.Pūras I. Draft EC recommendation on non-discrimination and costing (latest CoCom draft 2013-05-29) Non – discrimination –EoI vs. EoO –Technical replicability –KPIs + auditing –SLGs Costing –BU-LRIC –Reusable vs. Non-reusable civil eng. assets –Price band (8-10 EUR for copper ULL) Trade-off (EoI + tech./econ. repl. + price constraints) Implementation – 2016-12-31 2013.08.29, Latvia Broadband markets LT 11

12. G.Pūras Copper access in EU Copper ULL prices are declining… …but too slow to have significant impact on NGA investments 2013.08.29, Latvia Broadband markets LT 12

13. G.Pūras II. Regulation on cost saving measures to promote BB investment (2013-03-27) Objective - to reduce the cost and enhance the efficiency of deploying high-speed electronic communications infrastructure Access to existing physical infrastructure: –all infrastructure to be shared –NRAs to solve disputes Transparency: –Single information point (location, size, owner) +12m. –Electronic means (public+6m.; private+12m) –in-site surveys Coordination of civil works Permit granting In-building equipment 2013.08.29, Latvia Broadband markets LT 13

14. G.Pūras - Only with regard to the powers of NRA II. Broadband promotion. Lithuanian approach 2013.08.29, Latvia Broadband markets LT 14

15. G.Pūras Broadband usage in EU Super-fast BB (>100 Mbps) is lagging; Fixed BB usage (all speeds) in EU is increasing, but slowly Mobile BB is increasing Still significant differences persist among the countries 2013.08.29, Latvia Broadband markets LT 15

16. G.Pūras BB: Lithuania in EU context (1) 16 Lithuanian case: Wholesale access products are not popular ULL: only ~ 500 lines unbundled (0,09 %) WBBA: only ~ 1,300 wholesale lines used (0,33 %) Alternative operators tend to use their own access infrastructure.

17. G.Pūras BB: Lithuania in EU context (2) 2013.08.29, Latvia Broadband markets LT 17 Alternative providers (and therefore – their end-users) benefit from being independent from incumbent. 51% of broadband lines are based on alternative infrastructure Source: 15th Implementation report, European Commission, 2009

18. G.Pūras Incumbent‘s new FTTx lines Alternative new FTTx lines Total new FTTx lines BB in Lithuania: infrastructure competition 2013.08.29, Latvia Broadband markets LT 18 Share of alternative operators’ investments into FTTx declining. Since 2010 m. ~70% of new FTTx deployment is done by TEO (incumbent) 60% of total FTTx infrastructure is still owned by alternative providers (2011 QIV) Source: RRT FTTx is being provided by 57 undertakings in Lithuania. Duct rental price 1km = 30 EUR/month

19. G.Pūras Ducts, km Change, km Average duct renting rate is approx. 500 km per year Access to the ducts – essential for FTTx investment 2013.08.29, Latvia Broadband markets LT 19 Access to the physical infrastructure was and still is the essential enabler of alternative infrastructure roll-out. Source: RRT The change of leading broadband technology from xDSL toFTTx occured in 2009 (quite early)

20. G.Pūras Residential Internet connections Demand for high speed connections is steadily increasing 2013.08.29, Latvia Broadband markets LT 20

21. G.Pūras Questions… 2013.08.29, Latvia Thank you! Giedrius Pūras _________________________________________________________________ Acting head of Price control and Statistics division Electronic communications department Communications regulatory authority of Lithuania Tel. +370-698-56100 e-mail: gpuras@rrt.lt Broadband markets LT 21

22. G.Pūras BB QoS measurements (1) 1.Providers must state the minimum speed in contracts (mobile BB – usually 0 kbps) 2.Dedicated speed test website: www.matuok.lt –Similar to SpedTest.net –No single Exchange point in LT, therefore all providers were asked to allow connecting the RRT server at certain nodes; –Speed test reports can be archived or saved to PC 2013.08.29, Latvia Broadband markets LT 22

23. G.Pūras Wireless BB quality measurements 3. Wireless broadband speed measurements and publication of results: –Based on partnership. Currently: 3 MNOs + WiMAx operator; –Commercially available (provided by operator) modems are used; –RRT developed software is used; –Locations: Post offices (one week testing in certain location); –Yearly report published; –Interactive and up to date measurement data available in dedicated website: http://epaslaugos.rrt.lt/matavimai/ –Open data for third parties’ applications made available in 2013: http://epaslaugos.rrt.lt/WebServices/ 2013.08.29, Latvia Broadband markets LT 23

24. G.Pūras Termination rates regulation Pure LRIC results to be applied from 2013 (EC. Rec.) 2013.08.29, Latvia Broadband markets LT 24

25. G.Pūras Wireless broadband measurement locations (2012) 2013.08.29, Latvia Broadband markets LT 25

26. G.Pūras extra 2013.08.29, Latvia Broadband markets LT 26