1INFSO/F3

The TEN-Telecom Programme

Jose’ Soler

INFSO/F3, EC j.soler@cec.eu.int

TEN-TELECOMInformation Day

2INFSO/F3

TEN-Telecom mission

A Community action bridging the gap between

the end of the research phase

(once a “product” exists)

and

the beginning of its market deployment

(once a business case exists)

3INFSO/F3

TEN-Telecom focuses on applications and generic services

Content

ICT Industry

EU MarketsTEN-Telecom programme

Telecommunications networks basedapplications and generic services

Physical infrastructure

4INFSO/F3

How?

Stimulating investment:

• in the launch of trans-European multimedia applications and generic services

• based on telecommunications networks (fixed and mobile)

• in areas of general interest

5INFSO/F3

Financially supporting:

market validation projects

and

deployment projects

By what means?

Implementing e-Europe priorities

PreparatoryRTD activities

Feasibility phase:

Market validation, business plan

Deployment phase:

Start-up

Full operation

Investment decision

TEN-Telecom areas of concern

PROJECTS OF COMMON INTEREST

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7INFSO/F3

Plans for investment

Deployment project

Partners committed to invest

Good understanding of the market addressed

Concrete work plan for rolling out an innovative and (commercially profitable) product/ service of common interest

Proof of past investments With a trans-European (global)

dimension

Clear identification of financial obstacles to be met

Convincing management

Pre-existing product/ service you can demonstrate

Prepare a Business Plan for global deployment

A business case to be validated (i.e., clear business potential)

Partnership with well identified roles. Experienced management

Proposal in line with TEN-Telecom sectors of interest and objectives

Project objectives

Validate the product/ service in real market conditions

Consolidated management and identified investors

Project results

Business PlanA commercial product/

service prototype

Market Validation Project

Adequate work plan and minimum budget necessary

8INFSO/F3

Pre-existing product/ service you can demonstrate

Prepare a Business Plan for global deployment

A business case to be validated (i.e., clear business potential)

Partnership with well identified roles. Experienced management

Proposal in line with TEN-Telecom sectors of interest and objectives

Project objectives

Validate the product/ service in real market conditions

Consolidated management and identified investors

Market Validation Project

Adequate work plan and minimum budget necessary

9INFSO/F3

Plans for investment

Deployment project

Partners committed to invest

Good understanding of the market addressed

Concrete work plan for rolling out an innovative and profitable product/ service of common interest

Proof of past investments

With a trans-European (global) dimension

Clear identification of financial obstacles to be met

Convincing management

Project results

Business PlanA commercial product/service prototype

10INFSO/F3

FORMS OF COMMUNITY FUNDING

(up to 10% of total investment cost)

- Direct grants

- Interest rebates

- Contributions to guaranty fees

- Risk capital

- Direct grants

- Interest rebates

- Contributions to guaranty fees

- Risk capital

PROJECT

PHASES FUNDED

(technical studies, design and development, technical validation)

• Business plan

• Market validation

Evaluation of Business plan

• Initial Market deployment

Full Market deployment

Phase 1

Phase 2

Phase 3

Phase 4

PRE

DEPLOYMENT

PHASES

DEPLOYMENT

PHASES

Project Phases and Funding

Research and development

- Co-funding of Business plan

and Market validation

(up to 50 %)

- Co-funding of Business plan

and Market validation

(up to 50 %)

11INFSO/F3

Business plan - first work package of a project- first draft at month 6

Preparation of Business plan

- advise by business experts (BPS project)

Market validation project

Market validation - demonstration in real market context

- up to 12 months

12INFSO/F3

Initial market deployment project

ENTRY CONDITIONS :

An operational business plan A detailed investment plan and well identified investors Convincing management and control of the business Concrete work plans (i.e., clear milestones)

OBJECTIVES :

Accelerate investment implementation Test commercial roll-out and competition Confirm management structure Confirm cash-flow generation and investment profitability

13INFSO/F3

Direct grants to investments

Subsidies of the interest on loans

Contributions towards fees for guarantees

Up to 10% of the total investment costs on the two first years

Previous support to be deducted from this 10% threshold

Risk capital participation for investment funds

Initial Market deployment projects: Financial rules

14INFSO/F3

Calendar

Call for proposals 2000/2 close 29 January 2001

Indicative Budget 33,5 Meuro

Evaluation of proposals February 2001

Contracts negotiation for selected projects April-June 2001

Start execution retained projects July 2001

Call for experts close 12 December 2001