Vodafone’s experience in bringing mobile broadband to the European regions

Three case studies: Germany Romania ItalyThree case studies: Germany, Romania, Italy

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GERMANY / LTE brings broadband in rural areas thanks to the Digital Dividendthanks to the Digital Dividend

Frequencies in 800 Mhz band were freed up With the switch from analogue to digital TV the switch from analogue to digital TV

In summer 2010 the frequencies were allocated to wireless broadband via auction

Advantages of this frequency: very good propagation and penetration to buildings

LTE + Digital Dividend= Broadband internet in rural Regions

LTE 800LTE 2.600

Coverage >50.000 Sit

Coverage <10.000 SitSites Sites

LTE 800MHz is more efficient in coverage

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LTE 800MHz is more efficient in coverage

GERMANY / 2 phases strategy

Vodafone LTE Strategy

Phase 1 – LTE 800

Rural areas non-connected

Phase 2 – LTE 2.600

Higher capacity in already covered areas

LTE / HSDPA - Top speed (indoor)

Address new customers and markets with Offer of new services in already covered areas Address new customers and markets with broadband connection in ‘ white areas‘

Offer of new services in already covered areas with broadband

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GERMANY / Next steps

• Vodafone Germany started roll out in September 2010 and has covered several hundreds municipalities with LTE and is so far the only operator that offers hardware (LTE stick)

• Since securing spectrum we have delivered broadband to around 1000 rural communities with 165,000 households

• we are confident that the ‘white spaces’ with no broadband coverage will have disappeared by the end of 2011

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ROMANIA / mobile delivers broadband to rural areas

• A below EU – average broadband penetration rate: as for January 2010 penetration rate: as for January 2010, the fixed penetration was 13% and the mobile penetration was 2.2%

• Strong platform competition - end-g p pto-end infrastructure competition based on DSL, UTP/FTP cable, coaxial cable, fibre, radio – but few wholesale based competition

• Low retail broadband prices, but lower speeds

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UMTS – Countrywide coverage

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ROMANIA / mobile delivers broadband to rural areas

In April 2010 Vodafone announced the national deployment of its 3G services in the 900 MHz spectrum which now enables access to mobile Internet for 90% of the 900 MHz spectrum which now enables access to mobile Internet for 90% of Romania’s population, at speeds of up to 21.6 Mbps.

At the same time Vodafone Romania extended its mobile Internet portfolio with prepaid services by launching Cartela Internet Vodafone, available for users countrywide, with Internet offers starting from 5 Euro credit.

Vodafone Romania also extended the benefits of the new network deployment to its existing partnership with SMURD (emergency service in Romania), by including new equipment and mobile broadband communication services into including new equipment and mobile broadband communication services into its existing telemedicine solutions.

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ITALY / “Internet Ovunque” & the “1000 Comuni” project

Internet Ovunque (Internet Everywhere) “1000 Comuni”

Mobile broadband coverage from 

~81% up to ~98‐99% “near window” 

i 3 4in 3‐4 years

Minimum coverage for Customer:

2 Mbps “near window”

Technology/speed evolution 

HSPA: 14.4 ‐ 28.8 ‐ 42 ‐ 84 MbpsHSPA: 14.4  28.8  42  84 Mbps

LTE: 144 Mbps …

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ITALY / “1000 Comuni” project

Vodafone Italy launched the project in December 2010 to connect municipalities where there is currently no fast Internet connection (defined as ADSL or wireless HSPA)there is currently no fast Internet connection (defined as ADSL or wireless HSPA)

So far we received 2290 applications from citizens and majorsSo far, we received 2290 applications from citizens and majors

82 communities in 12 Regions throughout the country were connected to date82 communities in 12 Regions throughout the country were connected to date

1000 communities will be connected by end 20131000 communities will be connected by end 2013

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CONCLUSIONS / Economic importance of broadband

Employment growthGDP growth(Mrd. €)A study published by the

10

15

10.000

15.000

GDP growth in Bion Euro

Employment growth

A study published by the German regulator shows that an offer of 1Mb/s in unconnected areas results in

0

5

0

5.000

unconnected areas results in 8,3 Bio GDP growth and can create 11.000 jobs

0 02011 2012 2014 2016 201720152013 2018 2019 2020

Source: Goldmedia/Mugler (2009)

7011.037

1.360LWL

xDSL

Glasfaser

Average investment cost per potential client (€)

LTE is the most efficient technology to achieve coverage

166171

533WLANWiMax*

LTE

Quelle: Goldmedia/Mugler (2009), eigene Berechnungen

* Eingeschränkte Leistung in Praxistests (1-2 Mbit/s)

technology to achieve coverage goals

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g ( ), g g

CONCLUSIONS / Some lessons learned

Wireless broadband is currently being delivered in several member states in a faster pace than fibre faster pace than fibre.

Mobile broadband covers rural areas in a more economic and efficient way .

The cases of Germany, Romania and Italy show that it is possible for member states to act very swiftly and quickly to allow efficient usage of frequencies (dividend allocations re-farming) Mobile operators are ready to commit the (dividend allocations, re-farming). Mobile operators are ready to commit the private investment needed to achieve the EU Digital Agenda targets.

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Thank you

www.vodafone.com/eu

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