Showing posts with label competition. Show all posts
Showing posts with label competition. Show all posts

Tuesday, January 1, 2008

Slow broadband is becoming political in St Nom La Bretèche /L’Internet a haute vitesse devient plus important a St Nom La Bretèche

Happy new year.

I went out to my mailbox today and found a newsletter we receive in the village. It's called "La Parole est aux listes - Journal d'expression des groupes au Conseil Municipal de Saint-Nom-La-Bretèche". I always try to read through it and today I was happy to see some attention to the ADSL situations here in St Nom. In this issue the group "Saint Nom Tout Simplement" writes:

Suite à une demande pressante auprès du conseil municipal, Orange a obtenu l’accord d’implanter une antenne relais sur le terrain de football. Nous avions insiste pour qu’en échange et au préalable, la commune obtienne des engagements sur le déploiement de l’ADSL rapide dans la commune (3/4 des foyer sont aujourd’hui limites a 512 kbit/s). Malheureusement, cette facilite a été donnée sans obtenir de contrepartie pour l’accès a internet. Aussi, 4 mois plus tard, Orange revient très dominateur avec une proposition de couverture à 92% de la commune en ADSL rapide, moyennant une participation de la commune estimée a EUR 50k. Et c’est “maintenant ou jamais”. Le pouvoir de négociation a évidemment changé de coté. Quant on réalise que la seule alternative a l’internet 512k dans notre commune, c’est Noos/Numericable…, on comprend mieux l’attitude aujourd’hui intransigeante d’Orange. Dommage!

I'll try to give a quick and dirty translation into English.

Following a request in front of the Municipal Council, Orange received permission to install a relay antenna near the football field in the village. We had insisted that in exchange for permission the commune should have obtained promises that fast ADSL would be deployed in the community (3/4 of homes in St Nom are currently limited to 512 kbit/s). Sadly, the permission was granted without any accompanying promise for Internet access Also, 4 months later, Orange has come back in a very dominant position with a proposition to cover 92% of the village with fast ADSL as long as the village covers half of the cost of the upgrade estimated to be EUR 50,000. They say it is either "now or never". The negotiation power has clearly shifted to Orange. When we realize that the only other alternative to Internet access at 512 kbit/s in our village (it's Noos/Numericable), we can more easily understand Orange's intransigence.

I was happy to see that the broadband issue has been raised to all residences in St Nom through this handout. People do want better broadband. Noos/Numericable may say they are offering 100 Mbit/s but my connection has been off and on for the past 3 days and it will cost me EUR 15 to call them to report it. I'm using my backup ADSL connection for now.

I don't know what the mayor has decided about the EUR 50,000 but I hope he hasn't paid it. They will upgrade the exchange without the money, particularly if Numericable is sweetening their offer.

More importantly, there is another option. Our fiber-to-the-home plan is only for the 50 homes in our small area of the village but we could expand to other areas fairly quickly once we get a fiber line down to the local exchange. Just the fact that we're moving ahead with a fiber plan should hopefully spur Orange into upgrading their own offering here in St Nom.

I find it interesting that for not much more than EUR 50,000, the Mayor and the Municipal Council could run an open access fiber from the telecommunication exchange at the edge of the village all the way to the Mairie. From here different "residences" could tap in and access services from competitive operators over fiber. Orange should not have the bargaining power to demand village money to upgrade their own exchange. They just need some competition.

Friday, July 6, 2007

Olivier JERPHAGNON - (Calient)

Yesterday I met with Olivier JERPHAGNON who works for Calient Networks. Dirk VAN DER WOUDE suggested we meet because of the connection between unbundling/regulatory policy and the optical switching equipment Calient produces. The gist of our discussion was about how different topologies and technologies affect the way alternative operators can access end-users. Luckily, I was also able to talk to him for a minute about this project as well.

Here are a some of the key/interesting items he brought up:

Overall

  1. One of the competitive operators here in France is planning to have 60 POPs for all of Paris at 10,000 subscribers each. That certainly helps in terms of scale economies.
  2. Access networks are similar to airports and harbors. If cities can promote the development of airports and harbors then they should be able to put in networks as well.
  3. The more "pure" the model for structural separation, the more tax money will be needed to fund the rollout of the network.
  4. VDSL and PON FTTH networks typically have a few hundred subscribers in a street cabinet compared to our 50.
  5. Calient's equipment is useful for creating dynamic PON and end-run networks from a central point. Their equipment is usually located in a central office (exchange) but they are working on a smaller version for street-size cabinet use.
St Nom Fiber
  1. Our project is small enough that it may be difficult to attract operators to come and provide services. He suggested that operators may only consider if they can be the sole provider.
  2. He emphasized that the key to attracting an operator will be having everything in place for them to connect in.
  3. One area where we may have an advantage is connecting the last 10 meters. The last few meters to reach a house and install the connection are among the most difficult and expensive for operators. We will be much more attractive to operators if, with the support of the residents, we install the network ourselves (and this last 10 meters) ourselves.
  4. He urged me to approach as many operators as possible about coming in and connecting into the network.

Tuesday, July 3, 2007

Benoît FELTEN - (Fiberevolution)

Two work colleagues and I had lunch with Benoît FELTEN of Fiberevolution to talk about the project and fiber rollouts in general here in France. We spent a good deal of time discussing why many operators were planning PON-based networks versus end-run fiber.

Some key points of the discussion:

  • First fiber in will likely solidify their position as a monopoly provider. This has huge implications for competition, network architecture and regulation.
  • The 50 homes in our project are peanuts for operators here in France. The key will be using this as a high-profile test case for the business model.
  • This little project could help apply pressure on local candidates running for office next year. Hopefully we can make open-access fiber one of the main campaign issues at least in the village.
  • The power of Web/Telco 2.0. This came up in two ways. First, it's so easy to make connections with other like-minded people with the interactive Internet of today. Second, and Benoît pointed this out, we're likely not long from the day where you can offer a complete third-party "triple-play" offer using Joost, Gmail and Skype.

I've also asked Benoît for help locating people with fiber expertise in the area. This is going to be really important because as interested as I am personally, I need to find someone who really knows installations here in France.

Competition / Concurrence

Competition is king.

I'm a big fan of competitive telecommunication markets because that's where the action is. Consumers are better off and providers are pushed to innovate and provide the best services. France has one of the most competitive broadband markets in the world and that has both positive and negative implications for this project.

On the positive side - Paris and other large cities are getting fiber - possibly from multiple providers. Soon others (in non-covered areas) are going to start wondering why they don't have it as well. That can only help projects like this one. We also have some of the best broadband packages in the world. The operator Free offers ADSL 2+ connections at up to 26 Mbps, free fixed calls to 42 countries and 100+ television channels for EUR 29.99 a month. Free has announced that it will move people to fiber for the same price. That's hard to beat.

And therein lies the negative aspect of competition on our project. Some operators in other countries are able to sell lower-speed ADSL (and even fiber) subscriptions without the other 2 parts of the triple play package. I don't think that consumers here in France would accept that now. If you don't have a compelling video and phone offer then people simply aren't interested. Offering an up-front triple-play offer is clearly outside the realm of possibilities for me alone with this project. That means that competition will likely force me to team up with someone who can.

Thursday, June 7, 2007

Should have said: "ensure unbundling"

You know, there was something I really wanted to mention to the mayor but forgot before I left. He mentioned that France Telecom wanted to upgrade the exchange. I should have told him that he should insert the requirement that in exchange for more land that they would need to build a space large enough to accommodate other operators and allow them to take unbundled local loops.

There's a good possibility that this would be required anyway by the ARCEP but I wanted to make sure that this exchange "upgrade" included the options for other operators to enter in and put in their own equipment.

Monday, June 4, 2007

DSL progress in St Nom? / Progrès de DSL à St Nom?

I rode the train home with two of my friends from the residence today (Patrick and Pascal). We talked about the project a bit and Patrick explained that France Telecom was working on building a large exchange (NRA) not too far from where we live, just across from the current (unused) exchange. The current exchange is very small (about the size of 2 refrigerators next to each other) and only serves business clients. However, he said that the new exchange is under construction just across the street from the current one and that it would be online in October. That would mean that our broadband options could increase dramatically around that time.

This is something I'd really like to speak with the Mayor about because it may have implications for the fiber project. Even if they did upgrade our DSL I think it would be crazy not to lay fiber down if we are re-doing the roads.

Patrick also explained that Noos, the cable company, has ducts in the street that maybe we could use. I figure it's probably going to be easier if we simply lay our own PVC pipe but it's something I'm going to look into. I was encouraged that both Patrick and Pascal seemed excited about the project.