1. Broadband Internet development in Lithuania

2. 2 Broadband. World opinion Source: Based on material from Broadband world forum, Seul 2004

3. 3 Future: Required Bandwidth per subscriber Source: Based on material from Broadband world forum, Seul 2004

4. 4 Technology development Source: Based on material from Broadband world forum, Seul 2004

5. Lithuania in the context of EU

6. 6 The eEurope 2005 framework Source: eEurope 2005, A study of the degree of alignment of the New Member States and the Candidate Countries, prepared by INSED, 2004

7. 7 New member states and Candidate country Alignment analysis Source: eEurope 2005, A study of the degree of alignment of the New Member States and the Candidate Countries, prepared by INSED, 2004

8. 8 Lithuania: Alignment with E-15 Source: eEurope 2005, A study of the degree of alignment of the New Member States and the Candidate Countries, prepared by INSED, 2004

9. 9 Structure of BB Internet access market in Lithuania Source: Communication Regulatory Authority, 2004

10. Existing situation in Lithuania

11. 11 Possibility to use Broadband in cities and rural areas CategoryPopulation Number of areas Possibility to use Broadband Population % Cities 2,297,6351032,292,66999.8% Rural areas 1,148,10221,826182,06116% Cities/Rural areas >500 of population 371,779393166,37345% Cities/Rural areas <500 of population 776,32321,43315,6882% TOTAL3,445,73721,9292,474,73072% 2.5 mln. citizens of Lithuania have possibility to use Broadband Internet today. ~2.3 mln. can choose attractive proposals from different suppliers.

12. 12 Broadband penetration Source: eEurope 2005, A study of the degree of alignment of the New Member States and the Candidate Countries, prepared by INSED, 2004

13. 13 Main factors that influence development of Broadband Internet Content User’s needs User’s literacy and knowledge of how to use new technologies Equipment (PC + Internet access) User’s ability to pay/cost of service

14. 14 The main factors that stops Broadband Internet development Lack of necessary content; There is some restrictions to access Broadband Internet: –It’s too expensive for some social groups; –There is no technological possibility to access Broadband Internet; User’s literacy and knowledge of how to use new technologies (“fear of technologies”).

15. Conclusions and proposals

16. 16 Definition of Broadband There is no common definition of Broadband concept, however the most acceptable and usable definition means always-on communication with minimum required bandwidth*. Lithuanian Broadband requirements: 512 Kbips data transfer rate as minimal bandwidth for Broadband; Permanent connection to the Internet Secure delivering of multimedia services Real time Quality of Services for each user *Source: American Federal Communications Commision – FCC

17. 17 Requirements for Broadband Internet development program Conformance between needs and abilities Investments should be proportional for content, for users education and for technological development. Integrity Program should be coordinated with other Internet development programs in Lithuania. Expedience of investments One more alternative infrastructure would require scale investments, complicated control, won’t reach end users and will affect just one aspect Internet access. Existing cable and wireless infrastructure should be used – Open tenders. Administration must warrant that investments will reach end user (for example subsidies for non-commercial companies, people to get Internet access/ PC, etc.).

18. 18 Broadband Internet development areas Finance incentive to increase usage of Broadband services Development of Legal basis Public institutions connection to the Broadband network Incentive of small and medium business To legitimate returns for users of computers and Internet access procurement costs; Investments should be proportional for content, for users education and for technological development; Smart subsidies model must be used in organization of open tenders, infrastructure development and service offering

19. 19 Typical broadband network architecture Private capital investments attracted increasing purchasing power of subscribers and developing network infrastructure in rural areas.

20. 20 Thank you for attention