Broadband development in Argentina
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1 Broadband development in Argentina Optimising risk and infrastructure development in times of crisis Sonia Agnese Regulatory Evolution Manager Telecom Personal - Telecom Argentina
2 Broadband market Argentina s Broadband Penetration: above the regional average Fixed Broadband (% inhabitants) % 27% 22,8% 11% 6% Argentina Latam OECD USA Europe Source: Pyramid, Cisco, IDC 2009, OECD 2
3 Broadband penetration by province Argentina: one country, different realities < 6% Below Latam average Buenos Aires: 46% < 6 % (Below Latam penetration) > 6 % and < 13% Source: Cisco june 2009 adjusted bytelecom2010 3
4 Impact of regulatory measures on cost to serve Mobile Broadband 4
5 Digital Dividend Spectrum Allocation of 700Mhz Band for mobile Broadband The best suited band to the roll-out of broad network coverage at relatively low cost: critical in rural areas 186Mhz 512 Mhz 698 Digital Terrestrial TV 30 Channels 21 to 51 (over 100 signals of Standard Definition TV) 108Mhz 746 Band IMT-2000 UIT 8 Channels 52 al Spectrum for DTT Spectrum for mobile broadband (LTE) Same investment: triple coverage (700 Mhz vs 2.1Ghz) 5
6 Digital Dividend: 700Mhz Practically unused Economies of scale assure low cost equipment Best propagation characteristics Broad network coverage at relatively low cost No detriment to TDT (more than 100 signals) Universal service investments can be financed with auction income 6
7 700Mhz Alternative Band Plans 698 MHz 806 MHz FDD USA Band Plan Uplink (18 MHz) Downlink (18 MHz) Downlink (12 MHz) Public Safety Uplink (12 MHz) Public Safety 60MHz (2x18 MHz) (2x12 MHz) CITEL Advanced Wireless Systems Advanced Wireless Systems 84MHz ASIA PACIFIC 10 MHz TDD 90 MHz (2x45 MHz)
8 US National Broadband Plan April 21, 2010 Free additional 120 MHz in UHF Broadcast Band
9 FCC: Additional 275 Mhz of spectrum needed by
10 Argentina Connected Plan Government announced in October 2010 U$S 2,000 Million budget Spectrum Terrestrial Digital Television 3 MM school student netbooks Universal Service Fiber Optic National Backbone 10
11 Argentina Connected Plan Spectrum Mhz Mobile spectrum current situation - comparison Plan announces spectrum auctions 547 Mhz 340 Mhz 300 Mhz 260 Mhz 170 Mhz UIT Recomendation Source: Regulator web sites, GSMA USA UE Brasil Chile Argentina 11
12 Argentina Connected Plan Terrestrial Digital Television ISDBT Standard (Japan-Brazil) INITIAL cities 70% coverage 1.2 MM STB 20 signals FINAL cities 95% coverage 4 MM STB 40 signals 12
13 Argentina Connected Plan Terrestrial Digital Television Digital Terrestrial Television + Internet Internet Broadcaster Digital Terrestrial TV (DTT) Hybrid DTT set top box Internet connection UK Project Canvas EU - Hybrid broadband broadcast TV Australia Telstra T-Box Hybrid set top box DTT and Broadband Broadband Connection DSL/ Cable modem 13
14 Argentina Connected Plan 3MM school student netbooks Government will deliver netbooks to 3 million school students (secondary and tertiary levels). Scheduled: 2 years 2.1 million 3G access dongles and DTT one-sec Largest global project 14
15 Argentina Connected Plan Redefinition of Universal Service: orientation to Broadband Development Internet Broadband service to schools 2G and 3G coverage in low populated areas Broadband infrastructure deployment in non-profitable areas 15
16 Argentina Connected Plan Fiber Optic National Backbone Backbone construction in non profitable areas 7000 Km of FO inhabitants ARSAT (State owned company) Telecom Telefonica Gov. Plan Important to remain as wholesale operator in order not to distort competition 16
17 Argentina Connected Plan Valuable: Government recognizes the importance of the ICT sector and broadband Private sector has an important role Considering the investment effort involved, cooperation would be very productive in the implementation of universal access policies, the deployment of new networks and the development of the information society Clear and sustainable policy environment that encourages investments, giving predictability and ensuring the sustainability of these infrastructures 17
18 Collaboration model Government Private sector Essential a fluid communication between regulators and operators to move towards an agreement of complementary effort for the development of the sector and society as a whole 18
19 Thank you! 19
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