Broadband Strategy 2030 - Austria's Path to the Gigabit Society - Vienna, 2019 - bmlrt
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Broadband Strategy 2030 Austria’s Path to the Gigabit Society Vienna, 2019
Imprint Media proprietor and publisher: Federal Ministry for Transport, Innovation and Technology (BMVIT) Executive Department – Information and Communication Infrastructure (Broadband Office) Radetzkystraße 2, A-1030 Vienna Vienna, August 2019 Copyright and liability: Excerpts may only be printed when reference is made to the source. All other rights are expressly reserved without the written consent of the media proprietor. Despite being prepared with the greatest possible care, no guarantee is provided for the information in this publication, and any liability of the Federal Ministry for Transport, Innovation and Technology (BMVIT) and of the author is expressly precluded. Any legal information provided is solely the non-binding opinion of the author and has no influence whatsoever on the decisions of the independent courts. Feedback: Please feel free to submit any comments or feedback you have on this publication to breitbandbuero@bmvit.gv.at. Broadband Strategy 2030 2 of 37
Contents Introduction ......................................................................................................... 4 1 EU objectives .................................................................................................... 7 Strategy for a digital single market for Europe............................................................... 7 Connectivity for a competitive digital single market – towards a European gigabit society............................................................................................................................ 7 5G for Europe − an action plan ....................................................................................... 8 2 Broadband infrastructure in Austria .................................................................. 10 2.1 Status and development of broadband coverage in Austria .................................. 10 2.2 Status and development of broadband usage in Austria ....................................... 12 2.3 Comparison of broadband coverage in Austria and Europe .................................. 14 2.4 Implementation of the Broadband Strategy 2020 ................................................. 16 3 Vision 2030 ..................................................................................................... 18 4 Austria’s Broadband Strategy 2030 ................................................................... 19 4.1 Objective – gigabit coverage................................................................................. 19 4.2 Financing needs .................................................................................................... 21 4.3 Avoiding investments with a negative economic impact ...................................... 22 4.4 Implementing a new legal framework to promote investment ............................. 22 5 Implementation steps and time horizon ............................................................ 23 6 Measures in the Broadband Strategy 2030 ......................................................... 24 6.1 Strategic measures ............................................................................................... 24 6.2 Legislative measures............................................................................................. 28 6.3 Funding measures ................................................................................................. 29 6.4 Accompanying measures to facilitate infrastructure deployment ......................... 31 Glossary ............................................................................................................. 35 Broadband Strategy 2030 3 of 37
Introduction
The Austrian government is strongly committed to the nationwide availability of
gigabit connections and has set the goal of fundamentally revising the current
Broadband Strategy 2020.
To ensure the sustainability of a long-term strategy, the technological premises, the market
conditions and the political objectives have to be reviewed regularly and adapted if necessary.
The Federal Ministry for Transport, Innovation and Technology (BMVIT) has prepared a draft
Broadband Strategy 2030 based on the relevant political objectives. Given the extraordinary
importance of the expansion of the broadband infrastructure for the country as a business
location and for the Austrian population, public consultation for the Broadband Strategy 2030
began on 1 February 2019. 34 statements were collected from key players in the
telecommunications sector, from representatives of the federal, state, and municipal
governments, from representatives of the social partners, and from interested citizens
through to 18 April 2019. All statements have been incorporated into the Broadband Strategy
2030 to the greatest degree possible.
The communication sector has changed substantially since the presentation of the
Broadband Strategy 2020 in 2012. In 2012, the term “broadband” used to mean “permanent
access to the Internet with considerably higher data rates than with dial-up connections”.1
The current requirements for “networks with very high capacity” are much broader and differ
fundamentally from the original technological assumptions.
The goal of the Broadband Strategy 2020 to achieve nearly nationwide coverage with
ultrafast broadband connections by 2020 as an interim objective on the way to nationwide
gigabit coverage still applies. However, new technologies and associated challenges made
the fundamental revisions presented in this strategy necessary.
1
BMVIT, Broadband Strategy 2020 (2012), 7
Broadband Strategy 2030 4 of 37From current studies, four developments can be identified that have changed or substantiated
the requirements for a Broadband Strategy 2030 compared to the initial situation of the
Broadband Strategy 2020.2
1. The development of 5G has become concrete and is closer to implementation.
2. Orientation towards nationwide fibre-optic networks as a universal fixed-line
infrastructure is becoming increasingly clear and is being implemented in more and more
countries.
3. The European Union is in the process of reformulating the broadband objectives in its
Digital Agenda.
4. The development of demand confirms the need for bandwidths well above the 100
Mbit/s target already in the year 2025.3
The economic and social benefits of digitalisation in all areas of life can only be reaped in full
if the entire population, all companies, and all public agencies can participate in the
opportunities of digitalisation under the same preconditions.
The future infrastructure expansion should create an gigabit-capable broadband
infrastructure throughout Austria. Now, fibre-optic networks represent a sustainable and
secure solution for the next decades as the future-proof transmission medium in the
telecommunication infrastructure in connection with the uninterrupted implementation of
5G as already formulated in the 5G Strategy4.
With the increasing convergence of fixed-line and cellular communications, uninterrupted
gigabit-capable connections throughout the country can even be achieved if not every
remote property is connected directly to the fibre network.
The Broadband Strategy 2030 formulates the framework conditions for the Austrian path to
the gigabit society and intends to facilitate as well as coordinate the private and public
investments that will be necessary to attain the objectives. The Broadband Strategy 2030
builds upon the Broadband Strategy 2020. Experiences gathered over the past years and the
Austrian Court of Audit report5 from 2018 have been taken into account, as have been the
2
WIK-Consult and WIFO, Evaluation of the BMVIT Broadband Initiative – 2015/2016 (2017), P XVIII
3
WIK-Consult and Deloitte and IDATE, Regulatory, in particular access, regimes for network investment models
in Europe (2016), P 23
4
www.bmvit.gv.at/5g
5
www.rechnungshof.gv.at/rh/home/home/Breitbandmilliarde.pdf
Broadband Strategy 2030 5 of 37projected international developments in the telecommunications markets and the expected technological developments. Following an overview of the current developments in Europe (Section 1), the initial situation in Austria will be presented (Section 2), including a summary of the measures taken to date. Then, the vision for Austria will be presented with a clear objective to be reached by 2030 (Sections 3 and 4). Section 5 describes the timetable underlying the Broadband Strategy 2030, and Section 6 summarises the associated measures in four blocks. Broadband Strategy 2030 6 of 37
1 EU objectives
The European Commission announced its objectives for the digital single market, the gigabit
society and the 5G rollout in multiple Communications in 2015 and 2016.
Strategy for a digital single market for Europe6
• Better online access to goods and services for consumers and businesses
• Creation of the proper conditions for flourishing digital networks
• Best possible leveraging of the growth potential of the European digital economy
Connectivity for a competitive digital single market – towards a
European gigabit society7
Strategic objectives for 2025
• All areas with particular socio-economic importance such as public institutions and
businesses should have a symmetrical gigabit Internet connection.
• All European households should have an Internet connection with a download speed of at
least 100 Mbit/s that can be upgraded to gigabit speed.
• All urban areas and all main transport paths should be equipped with a 5G connection
from end to end.
Interim objective for 2020
• 5G coverage as a full-value commercial service in at least one major city
6
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52015DC0192&from=EN
7
https://ec.europa.eu/transparency/regdoc/rep/1/2016/EN/1-2016-587-EN-F1-1.PDF
Broadband Strategy 2030 7 of 375G for Europe − an action plan8
The action plan is based on eight actions to roll out 5G:
• Action 1
The establishment of a common European timetable for the launch of early 5G networks
by the end of 2018 and the launch of fully commercial 5G services in Europe by the end of
2020.
• Action 2
The creation of a provisional list of pioneer spectrum bands for the initial launch of 5G
services by the end of 2016 with at least three spectrum ranges: below 1 GHz, between
1 GHz and 6 GHz, and above 6 GHz to account for the diverse application requirements of
5G.
• Action 3
Agree by the end of 2017 on the full set of spectrum bands to be harmonised for the
initial deployment of commercial 5G networks in Europe. Work towards a recommended
approach for the authorisation of the specific 5G spectrum bands above 6 GHz.
• Action 4
Collaboration for the development of national 5G roadmaps:
− Set rollout objectives for the monitoring of the progress of key fibre and cell
deployment scenarios to meet the target of at least all urban areas and all major
terrestrial transport paths having uninterrupted 5G coverage by 2025;
− Identify immediately actionable best practice to increase the consistency of
administrative conditions and time frames to facilitate denser cell deployment, in
line with the relevant provisions of the European Electronic Communications Code.
• Action 5
Standardisation approach to commit to:
− Availability of the initial 5G standards by the end of 2019;
− Support in the creation of a comprehensive standardisation approach;
− Establishment of appropriate cross-industry partnerships by the end of 2017, in
particular for the digitalisation of industry.
8
https://ec.europa.eu/transparency/regdoc/rep/1/2016/EN/1-2016-588-EN-F1-1.PDF
Broadband Strategy 2030 8 of 37• Action 6
To foster the emergence of digital ecosystems based on 5G connectivity, the
Commission calls upon the industry to:
− Plan for key technological experiments, including the testing of new terminals and
applications demonstrating the benefit of 5G connectivity for important industrial
sectors;
− Present detailed roadmaps by March 2017 for the implementation of advanced pre-
commercial trials.
• Action 7
The Commission encourages Member States to consider using the future 5G
infrastructure to improve the performance of communications services used for public
safety and security, including shared approaches in view of the future procurement of
advanced broadband public protection and disaster relief systems.
• Action 8
The Commission will work with the industry and the European Investment Bank Group to
identify the objectives, possible configuration, and modalities for a venture financing
facility to promote digital start-ups.
Broadband Strategy 2030 9 of 372 Broadband infrastructure in Austria
2.1 Status and development of broadband coverage in Austria
Basic coverage with fixed-line broadband (up to 10 Mbit/s download rate) is offered to nearly
(99 percent) of the more than 10 million primary and secondary residences in Austria.
Connections of NGA quality are available for over 80 percent of these residences.
The development of availability in the individual bandwidth classes clearly shows that the
share of ultrafast connections is growing rapidly. Internet connections with speeds of at least
100 Mbit/s are available to 59 percent of the residences. This share will increase to 65 percent
through the foreseeable broadband deployment initiated by the Broadband Austria 2020
initiative. Gigabit-capable connections are available to 15percent of the residences,
considering the Broadband Austria 2020 initiative.
Figure 1: Development of fixed-line broadband coverage in Austria, 2016–2018 (BMVIT)
+6 ppt
80 81
73 +6 ppt
58 59
50
+2 ppt
12 13
9
NGA (≥ 30 Mbit/s) Ultrafast (≥ 100 Mbit/s) Gigabit-capable (≥ 1.000 Mbit/s)
2018 + BBA2020 2016 2017 2018
Before the Broadband Austria 2020 initiative, speeds of 100 Mbit/s and higher were limited
almost exclusively to major cities and urban areas. However, the coverage with ultrafast
Broadband Strategy 2030 10 of 37broadband connections has also increased in less densely populated areas since the start of
the broadband initiative. As can be seen in Figure 2, up to a density of 50 residences per
100 x 100 m grid cell ultrafast broadband is particularly deployed as part of the Broadband
Austria 2020 initiative. In more dense populated areas, the expansion of ultrafast broadband
is generally deployed commercially.
In direct connection with the objective of the Broadband Strategy 2020, currently only 28
percent of all populated areas with up to two residences per 100 x 100 m grid cell have access
to Internet connections of 100 Mbit/s or faster. By contrast, 97 percent of areas with over 200
residences per 100 x 100 m grid cell are already covered.
Figure 2: Fixed-line coverage with ≥ 100 Mbit/s by density, 2018 (BMVIT)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
BBA2020 deployment Comercial deployment 2018 Coverage 2017
Relative to the number of residences in each category, coverage in areas with a density of 11
to 20 residences per grid cell increased the most. This shows that the guidance function of the
broadband initiative has the desired effect. The expansion of ultrafast broadband now also
takes place in areas where it was commercially not viable because of the low population
Broadband Strategy 2030 11 of 37density. The specification of the funding areas also ensures that there will be no crowding-out
effects.9 According to calculations of the WIFO/WIK-Consult consortium, the broadband
initiative triggers further investments equating to two and a half times the public funding.10
2.2 Status and development of broadband usage in Austria
Fixed-line and cellular technologies together already provide more than 10 million broadband
connections in Austria. Figure 3 shows a clear and continuous increase in the number of
smartphones from 2009 to 2018. More than one fourth of all broadband connections
(smartphones and mobile broadband) are provided through mobile communications
networks. The growth curve flattened during the past year, however.
Figure 3: Broadband use by infrastructure, 2009–2018 (RTR-GmbH)
6000
5000
4000
Connections in thousands
3000
2000
1000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Smartphone Mobile Boradband xDSL Cable FTTP
Fixed-line broadband Internet saw only low growth rates in recent years at a total of
2.5 million connections. However, a trend towards more powerful technologies is evident.
While the number of xDSL connections decreased by 2 percent to around 1.5 million
compared with the previous year, cable technology rose by 3 percent to 0.9 million
connections. Especially FTTP coverage grew by 21 percent to 63,000 connections, though
9
See also: Item 47 of the EU Guidelines for the application of State aid rules in relation to the rapid deployment
of broadband networks (2013/C 25/01).
10
WIK-Consult and WIFO, Evaluation of the BMVIT Broadband Initiative – 2015/2016 (2017), 52
Broadband Strategy 2030 12 of 37this represents a very small share of 2 percent of all fixed-line connections. The potential of
the available bandwidths is only partly used in Austria. Of the 2.5 million fixed-line broadband
connections in total, only 40 percent of the customers use products with speeds greater than
30 Mbit/s and 11 percent products with speeds greater than 100 Mbit/s. However, a trend
towards higher bandwidths is evident in Austria, as well. Even though the category with
transmission speeds greater than 100 Mbit/s is still the smallest, is also exhibits the highest
growth rate of 300 percent since 2015.
Figure 4: Fixed-line broadband usage in the Mbit category, 2012–2018 (RTR-GmbH)
2.500 104 209 281
71 81
40
35
2.000 190 274 340 384
482
525
691
Connections in thousands
1.500
590
679 726
812 799
695
1.000
736
500
1.313 1.240 1.217 1.114 1.071 1.015 749
0
2012 2013 2014 2015 2016 2017 2018
≥ 100 Mbit/s ≥ 30 Mbit/s to < 100 Mbit/s ≥ 10 Mbit/s to < 30 Mbit/s ≥ 144 kbit/s to < 10 Mbit/s
Even though more than three quarters of the broadband connections are provided through
the cellular networks, it is important to note that more than twice as much data volume is
carried over fixed-line connections.11 At the European level, more than two thirds of the data
traffic in cellular networks is handled through fixed-line networks by means of “mobile
offloading” (usually by WiFi).12
11
RTR Internet Monitor (1/2019), 8
12
EC SWD (2016) 20 final, P 14; available at: http://ec.europa.eu/transparency/regdoc/rep/10102/2016/EN/SWD-
2016-20-F1-EN-MAIN-PART-1.PDF
Broadband Strategy 2030 13 of 372.3 Comparison of broadband coverage in Austria and Europe
With just under 14 percent of all households covered, Austria lags behind noticeably in
coverage with “fibre to the premises” (FTTP) networks in European comparison. This puts
Austria ahead of Germany and Great Britain (9 and 4 percent, respectively) but well behind
the European average of 35 percent. This gap becomes all the more clear when considering
the fact that twelve EU countries already have network coverage of over 50 percent, and five
even have coverage of over 70 percent.
Figure 5: FTTP availability in per cent of households, 2018 (EC, Digital Agenda Scoreboard)
88
77
72 70
70 68
64 63 63
61 61
54
38 38 38 38
36 35
32 30
29
24 23
13 13 4
9 1 1 0
The Austrian federal government expects that higher-performance applications and the
resulting demand will increase needs for bandwidth, symmetry, and quality in future. Austria
as a business and research location will only be successful in international competition when
new applications and services developed based on new key technologies are available to all
citizens, businesses, and public agencies in the country and as many as possible participate
actively in digitalisation. A modern and powerful digital infrastructure is crucial for this. Partly
due to the large number and geographical dispersion of successful SMEs, nationwide
coverage with gigabit connections is a particularly important factor for the future economic
success of the country.
Broadband Strategy 2030 14 of 37Meeting this objective requires fibre down to the last edge segment (FTTP), regardless of
whether the connection over the last mile is line-based or realised through a mobile
technology. To realise their full potential, 5G networks need fibre backhaul infrastructures.
This is the only way to meet the projected expectations in terms of the requirements for the
applications, the download and upload speeds, latency, and quality of service.13 This means
that the connection of the majority of cellular base stations with fibre is a prerequisite for the
future 5G rollout. The deficiency described above is also critical in terms of nationwide
coverage with 5G from a competitive perspective.14 The Broadband Strategy 2030 and an
efficient and targeted funding system developed based on this strategy will help to overcome
this critical deficiency.
In international competition with other business and research locations, all areas with
particular socio-economic importance such as public institutions (schools, universities, etc.),
businesses and areas along main transport paths will require additional investments in
gigabit-capable broadband infrastructure.
This will create additional demand incentives to expand the infrastructure further. The rapid
provision of gigabit coverage in public areas will reach a considerable number of new users
and will create higher demand. This will have a positive impact on the economy and society in
a broader sense and will enable Austria to remain internationally competitive.
The German research institution WIK-Consult investigated future consumer demand for high-
speed broadband Internet in 2025 as part of a project for the German Federal Ministry for
Economic Affairs and Energy (BMWi). A main finding of the study is that around 75 percent of
all households in Germany will demand bandwidths of over 500 Mbit/s downstream and over
300 Mbit/s upstream in 2025.15 However, it is not only bandwidth, but also quality in terms of
latency, packet loss, and jitter that are highly important. Another study by WIK-Consult for
the German Broadband Association (BREKO) found the following in this context:
“Comparing characteristics and quality parameters of different
transmission technologies makes it apparent that the majority of
demanding digital applications could be served by a number of
technologies in terms of download speeds, but that FTTB/H is the only
13
WIK-Consult, Approaches for installing fibre coverage in poorly supplied areas (2017), P 4
14
WIK-Consult and WIFO, Evaluation of the BMVIT Broadband Initiative – 2015/2016 (2017), P 119
15
WIK-Consult, Consumer demand for high-speed broadband Internet in 2025 (2017), P 21
Broadband Strategy 2030 15 of 37viable option when they require symmetrical bandwidths and have high
quality demands.”16
As Austria and Germany are comparable countries in socio-economic terms showing similar
initial situations and needs, this statement can also be applied to Austria. According to the study,
only networks with very high capacity will be able to satisfy the demands over the long term.
2.4 Implementation of the Broadband Strategy 2020
The measures set forth in the Broadband Strategy 2020 have already been implemented in
large part, or are currently being implemented. Extensive descriptions can be found in the
annual evaluation reports of the BMVIT’s Broadband Office.17
The funding measures are running as planned and were subjected to an interim evaluation by
external experts from WIK-Consult and the Austrian Institute of Economic Research (WIFO)
at the beginning of 2017.18
An excerpt from the executive summary confirms that Austria is on its way to meeting its
objectives and recommends new focuses for the third phase:
“The results show that the implementation as set forth in the master plan
and as being pursued by the invitations for tenders is suitable for reaching
the objective of supplying all of Austria with Internet connections of at
least 100 Mbit/s. The strategy of gradually increasing the density of
available fibre network access points is also one of the most important
measures for increasing 5G readiness. Nevertheless, the authors of the
study feel that it will be necessary in the third phase in particular to place a
massive funding focus on fibre infrastructure.
These initialised investments are substantial in relation to the investments
that were typical in the Austrian telecommunications sector in the past. Over
the last years, operators have invested an average of EUR 600 million per
year (without frequency costs) in network infrastructure. Public funding
16
WIK-Consult, Success factors in FTTB/FTTH expansion (2016), P 21
17
www.bmvit.gv.at/telekommunikation/breitband/publikationen/evaluierungen/evaluierung.html
18
www.bmvit.gv.at/service/publikationen/telekommunikation/downloads/evaluierung_initiative2017.pdf
Broadband Strategy 2030 16 of 37can (substantially) lift this rather low level of investments in international
comparison in Austrian telecommunications infrastructure.”19
The results of the various invitations for tenders are published on the BMVIT website.20 A new
layer has also been added to the publicly available broadband atlas of the BMVIT that shows
the funded expansion projects in concrete terms based on the 100 x 100 m grid.21
Around EUR 475 million have been pledged for concrete projects from the “broadband
billion” through the various funding programmes of Broadband Austria 2020 in the multiple
tender evaluation rounds through to the end of 2018. Nearly all of this funding is for passive
infrastructure (fibre-optic cable). This will make access to a future-proof broadband
connection reality for around 44 percent of the residences identified as having insufficient
coverage in 2014.
The market dynamics triggered by the broadband initiative are also apparent from the
expansion work being reported by the operators in addition to the funded projects. Since the
start of the Broadband Austria 2020 initiative in 2015, substantial improvement in broadband
coverage has been achieved in 1,950 municipalities. The expansion was on a purely
commercial basis in over 900 of these municipalities.
19
WIK-Consult and WIFO, Evaluation of the BMVIT Broadband Initiative – 2015/2016 (2017), P 1–2
20
www.bmvit.gv.at/telekommunikation/breitband/foerderungen/projekte/index.html
21
www.breitbandatlas.info/
Broadband Strategy 2030 17 of 373 Vision 2030 By 2030, Austria will be supplied with symmetrical gigabit-capable access networks. A dense fibre-optic network combined with universal mobile coverage will enable every citizen, every business, and all public institutions to use the opportunities and technical possibilities provided by digitalisation under the same prerequisites everywhere in the country. This will enable Austria to take a pioneering role in the digitalisation of Europe and will secure and further expand its position in European and international competition. Broadband Strategy 2030 18 of 37
4 Austria’s Broadband Strategy 2030 The Broadband Austria 2020 initiative showed that long-term, stable requirements developed in collaboration with public agencies, regional authorities, and infrastructure and service providers are necessary for the successful and sustainable implementation of an infrastructure strategy. Especially infrastructure investments require comprehensive planning and sufficient flexibility during implementation. With its master plan for broadband promotion funding, the BMVIT has also created an implementation roadmap for funding that affords sufficient flexibility for any necessary adaptations thanks to its modular structure. External experts in the first interim evaluation also praised this approach. To be able to meet future challenges, further effective measures that can be adapted to the practical requirements will be needed to achieve the greatest possible coverage on the one hand and to ensure the sustainability, security, and longevity of the networks on the other. In this next step, a strategy must be created to achieve new connectivity objectives for complementary fixed-line and mobile networks. This will allow stable strategic approaches from the private and public sectors to be created, coordinated, and evaluated in terms of objective attainment going forward. The federal government has already achieved two key milestones with the 5G Strategy adopted in April 2018 and the amendment of the Telecommunications Act passed by the National Council in October 2018. This also laid a strong foundation for the implementation of this Broadband Strategy 2030, upon which the next steps and measures will be based. The core objective of this Broadband Strategy 2030 is to ensure equality of opportunity to participate in the possibilities presented by digitalisation without limitation for all citizens of Austria. This means that all citizens must have high quality and affordable access to applications and services. 4.1 Objective – gigabit coverage Projections of an international ICT equipment supplier point to an increase in worldwide data use from 1.5 zettabytes22 in 2017 to as much as 4.8 ZB in 2022.23 This is a threefold increase in 22 1 zettabyte (ZB) is 1,000,000,000 terabytes 23 www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white-paper-c11- 741490.html#_Toc529314172 Broadband Strategy 2030 19 of 37
five years, and this trend is likely to continue onwards. On the one hand, this enormous
growth is driven by an increase in private data usage, in particular from changed media
consumption practices. On the other, many new commercial applications also contribute to
this growth. The increasing interconnection of devices (the Internet of Things or IoT), M2M
communication, and smart home applications will also be an important factor. Four billion
networked devices are predicted in Western Europe by 2022 compared with 2.3 billion in
2017 – an increase of more than 70 percent. These are applications that make use of mobile
and fixed-line access technology and that place different demands on the respective networks.
It will be necessary to lay fibre infrastructure as close to every building (FTTP) and cellular
base station as possible in the medium to long term to ensure the availability of high-quality
infrastructure that can sustainably meet the demands of the future. Technologies such as
DOCSIS 3.1 and 5G are viable options for the last mile to rapidly realise the uninterrupted
availability of gigabit-capable connections for the population.
As we move forward, known and future technological developments will make it necessary to
even cover unpopulated areas with high-capacity broadband for applications in the fields of
mobility, production, logistics, and agriculture and forestry. The 5G Strategy contains the
objective of uninterrupted 5G coverage in the populated areas. A key interim objective is 5G
coverage along the main transport paths. The objectives of the 5G Strategy have been
incorporated into the Broadband Strategy 2030.
Since most strategies regarding infrastructure used to focus on densely populated areas, the
future expansion of 5G infrastructure will deal with widening the coverage beyond these. This
will require improved legal conditions to facilitate accelerated expansion. First steps have
already been taken in the 2018 amendment of the Telecommunications Act24.
Overall, it can be said that the strict separation between mobile and fixed-line access
technology is increasingly replaced by a general demand for availability. From the
perspective of the user, every application will be expected to function from mobile
connections as well. When setting funding terms, suitable quality parameters must be
defined to ensure that the expansion is sustainable. On the one hand, the investments must
meet the future requirements for services to the greatest degree possible while on the other
hand, the largest possible number of citizens should be reached with the available funding.
24
www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=20002849
Broadband Strategy 2030 20 of 374.2 Financing needs The European Commission estimates investment needs of EUR 500 billion for the EU over the next 10 years, most of which is to come from private-sector businesses.25 For Austria, calculations of the federal government’s Broadband Office show investment needs of around EUR 10 to 12 billion for nearly nationwide coverage of the population with gigabit-capable connections. It will not be possible to entirely reach the broadband objectives for 2030 without major investments by the existing commercial infrastructure operators. Austria’s network operators are often part of an international group that must compete with other group companies when seeking funding for investments. The willingness of commercial operators to invest must be sparked with appropriate regulatory and tax incentives to meet these financing needs in the medium and long term. Analyses of the federal government’s Broadband Office indicate that gigabit-capable connections for around 60 percent of the population will come from commercial businesses. Up to 85 percent of the population can be supplied by the telecommunications sector by means of public funding and/or coverage requirements in frequency auctions. For very sparsely populated rural areas, new, innovative financing and implementation models must be developed by the end of 2020, in cooperation with state and municipal governments. In the longer term, fibre-optic networks can be installed at a relatively low cost by taking advantage of ongoing construction projects, especially at the municipal level. Measures should be considered that ensure that information about construction projects is made readily available to all interested parties to enable rapid and unbureaucratic use. For the future, however, it will be very important that fibre networks are built and operated in a way, which ensures access in a uniform manner. To this end, corresponding agreements must be made on uniform technical and organisational interfaces and to define mandatory minimum quality standards among all potential bidders. The regulatory authorities must evaluate how attractive wholesale models can be used to create interesting and sustainable business models for all involved parties. 25 EC Connectivity for a competitive digital single market – towards a European gigabit society COM (2016) 587 final, P 8 Broadband Strategy 2030 21 of 37
4.3 Avoiding investments with a negative economic impact
As noted above, considerable funding must be raised to meet the gigabit coverage objectives
for the entire country. This makes avoiding investments with a negative economic impact a
particular challenge. Over the long term, the targeted, low-cost usage of ongoing or planned
construction projects is an important factor. Access modalities for existing networks must be
eased and, as mentioned above, the technical interfaces must be standardised. It will also be
especially important to inhibit the economically unjustified construction of superfluous
infrastructure.
International examples show that current legal frameworks tolerate to overbuild existing
open access fibre optic networks in economically unprofitable areas despite a feasible access
at the service level. This is based on an often incorrectly interpreted or outdated
understanding of infrastructure competition.
To inhibit such activity in Austria as we move forward and to leverage synergies in construction
projects, the existing cable networks should be taken into account when planning fibre projects
to prevent building redundant infrastructure. In addition to uniform national databases such
as the ZIS, an operational coordination role is to be introduced to coordinate the expansion.
It seems that this will require a paradigm shift at the regulatory level. When building fibre
infrastructure, an incorrect understanding of competition causes more economic damage
than it offers benefits. Infrastructure competition is preventing necessary investments in
sustainable broadband expansion in sparsely populated rural areas of Austria in particular.
Economically damaging infrastructure competition can be prevented by means of improved
coordination and accompanying regulatory measures.
4.4 Implementing a new legal framework to promote investment
The need for an investment-friendly legal framework has also been recognised at the European
level and is addressed in the European Electronic Communications Code (EECC).26 The Code also
contains further provisions that promote investment and that thus ease intensive infrastructure
expansion when they are implemented in national law. When implementing the Code in national
law, Austria will use the legislative means at its disposal to create investment-friendly conditions.
26
https://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=CELEX:32018L1972&from=DE
Broadband Strategy 2030 22 of 375 Implementation steps and time
horizon
To turn the vision of nationwide availability of gigabit-capable connection by the end of 2030
into reality, the rollout must advance in individual phases. The advances must be made
available in a transparent manner over the envisaged time horizon.
Phase 1: Nationwide provision of ultrafast broadband connections (100 Mbit/s) by the end of 2020
Phase 2: Market launch of 5G in all state capitals by the end of 2020
Phase 3: Austria as a 5G pilot country by the beginning of 2021
Phase 4: Availability of 5G services along main transport paths by the end of 2023
Phase 5: Availability of gigabit-capable connections nationwide by the end of 2025, including
nationwide 5G coverage
Vision 2030: Comprehensive availability of gigabit-capable connections by the end of 2030
Parallel to this, detailed measures must be defined to support the realisation of this
vision in the best manner possible.
Broadband Strategy 2030 23 of 376 Measures in the Broadband Strategy 2030 Concrete actions in the four areas of • strategic measures, • legislative measures, • funding measures, and • accompanying measures will help to facilitate objective attainment in the described time frame. The regular adaptation of the Broadband Strategy 2030, the individual objectives, and the associated measures to the continuously changing technological and economic conditions will be crucial for success. However, while maintaining flexibility in the individual steps, it will be important to ensure that the objective of nationwide coverage with a powerful and affordable infrastructure for the population remains at the forefront. For this reason, the Broadband Strategy 2030 focuses on the following actions to provide a framework for orientation. The details will then be determined in the individual phases. 6.1 Strategic measures Scientific study on the importance of broadband and ICT The ICT sector has only been documented rudimentarily in statistical terms. Because ICT is an integral aspect in all social and economic arenas, it is necessary to attain a scientifically founded basis for the economic importance of ICT. The concrete question is the real meaning of ICT and of high performance broadband infrastructure along the entire value creation chain. To this end, existing studies must be analysed, and additional studies on concrete issues must be commissioned if necessary. This analysis should serve to define precise framework conditions and to further improve the return on the employed funding. Broadband Strategy 2030 24 of 37
Creation of a joint platform for operators and authorities for the evaluation of
infrastructure expansion, cooperation models, and uniform technical and
organisational interfaces
The current regulatory maxim and its application in the Telecommunications Act are based
on increased infrastructure competition. The adoption of the cost-cutting directive in
Austrian law further promoted this competition and further increased the business risk of the
initial investor. This dogma of infrastructure competition assumes that multiple economical
networks compete with one another and thus enable the best price to be achieved for the end
customer at the best quality. The switch to fibre-optic architecture requires new approaches
for planning the expansion and financial means that often cannot be amortised even with a
very long-term planning horizon, especially in sparsely populated areas.
Open access networks will make the infrastructure available to every service provider under
the same terms. Competition will be shifted to the service level.
The BMVIT will arrange a platform to clarify the conditions for open access networks
together with RTR, infrastructure and service providers, and the regional authorities.
Evaluation of the acceleration of fibre network expansion through companies with
an open access network approach
The 5G expansion is under way in Austria, but fixed-line network operators are proving slow
to invest in fibre installation to the end customer (FTTP), especially in sparsely populated
areas. The connection of cellular base stations with fibre is also not complete in some cases.
Some states of Austria have established companies with the goal of pushing ahead with the
expansion of the fibre infrastructure to the end customer. The installed infrastructure is
owned by the state government in most of these cases. The European competition
framework for open access models has set the following conditions for the activities of these
network operators, among others:
• Network operators limit their activities to target areas defined in advance and do not
become active in other commercially attractive areas.
• Network operators limit their activities to the maintenance of and access to the passive
infrastructure, but do not engage in competition with commercial operations at the
service level.
• Network operators maintain separate books for the discrete management of the funding
for network operation and the funding for other purposes.
Broadband Strategy 2030 25 of 37Under a further model, members of the European Union can apply for licences under the concept of services of general economic interest (SGEI). The European Union has issued venture capital financing for broadband expansion in collaboration with the European Investment Bank (EIB) through the European Fund for Strategic Investments (EFSI). Demand for this funding has since become high throughout Europe. Yet, so far, no project has been implemented in the telecommunications sector in Austria. On the one hand, most fibre-optic projects in Austria do not reach the critical mass for this type of financing, and there are still too few companies interested in the overall broadband rollout on the other. According to the EU definition funding is only permitted in the “white spots”. However, fibre infrastructure must also be deployed in regions that are already supplied by copper infrastructure with NGA speeds. Therefore, a venture capital instrument combined with public funding could accelerate the deployment. First, it must be evaluated to what extent public participation could accelerate the use of outside funding overall, and whether open access networks could contribute to this and in what scope these instruments would have to be issued. Harmonising access conditions and interfaces to open access networks The Broadband Austria 2020 initiative has triggered a level of dynamics never seen before in the Austrian telecommunications sector. New market participants, usually established through activities of the state and municipal governments, build an increasing number of open access networks. Because each of these networks has developed its own standards and access conditions, there are as of yet no uniform interfaces for using these networks at any level. This also makes it difficult to facilitate nationwide competition with interesting wholesale offerings. This is a key hurdle to service variety and competition on the end customer market. The challenge to be overcome is the rapid definition of uniform interface conditions and standards and their implementation in the different networks. The BMVIT will prepare concrete proposals to this end together with RTR and infrastructure and service providers by the end of 2019. The goal is to come to a binding agreement on the relevant interfaces among all involved parties. The provision of public funding must be made dependent on compliance with the binding uniform standards. Broadband Strategy 2030 26 of 37
Defining funding areas
In light of the coming integrated fibre infrastructure and associated 5G expansion, the BMVIT
will begin ascertaining the sponsorship of the existing and planned gigabit-capable access
networks with the relevant parties among the communication services providers and
infrastructure builders (such as the companies owned by states and municipalities) with the
goal of launching the coordinated installation of comprehensive infrastructure in all of
Austria. The ultimate goal is the comprehensive availability of gigabit-capable networks
everywhere in Austria.
Revision of the data basis for the broadband atlas on an address basis
The expected expansion of the fixed-line access network with fibre makes it necessary to
reassess the coverage possibilities. The broadband atlas currently depicts the coverage
situation using a 100 x 100 m grid. However, fibre is a point-based technology. As a result, a
valid data basis on the availability of fibre network access points close to the end customer
can only be created at the address level.
Model for the depiction of NGA coverage with mobile access
The following should be possible in future on the basis of a commercial mobile
communications planning tool:
• The calculation of existing network coverage by the BMVIT and thus a realistic depiction
of mobile broadband coverage. The model is also to be used for 5G calculations later.
• Evaluation of the plausibility of the actual indoor and outdoor coverage capacity of the
cellular projects submitted for funding.
IKI training platform
The increasing expansion work is leading to a lack of sufficiently qualified personnel. There
are not sufficient experts on the market for the planning and implementation of broadband
projects or for the handling of the conduits and fibre-optic cables. This can cause capacity
bottlenecks in the broadband expansion.
The objective of the IKI platform is to develop qualification measures and concrete training
models together with training institutions and the responsible market entities by the end of
2020 and to assist with their implementation.
Broadband Strategy 2030 27 of 37Cybersecurity The success of 5G technology also depends on cybersecurity. The following principles of cybersecurity also apply to 5G: confidentiality, integrity, binding character, authenticity, availability, privacy, and data protection. Cybersecurity must be ensured at the national and international level on a cooperative basis. For this reason, national and European cybersecurity strategies are taken into account in the 5G technology. The Austrian strategy for cybersecurity plays a particularly important role in this. Through an overarching approach by the responsible federal ministries, Austria will ensure that its ICT infrastructures are secure and resilient against attacks and risks. The government agencies will work in close partnership with the private sector in this. 6.2 Legislative measures EU legal framework – redesigning the funding guidelines The “broadband guidelines”27 must be adapted at the European level to create a suitable legal groundwork for the awarding of funding. The current definition of the eligible areas under the NGA approach as 30 Mbit/s download speed makes the switch to gigabit-capable networks difficult. The BMVIT will continue to advocate for the further development of the legal framework towards the definition of an infrastructure objective at the European level and will initiate necessary adaptations within the current possibilities. Investment-friendly implementation of the new European legal framework (EECC) in national law With the goal of creating as much legal certainty and as many incentives as possible, the BMVIT will make full use of the available possibilities to implement the new European legal framework into national law in a way that is as investment friendly as possible. 27 Commission Communication, EU Guidelines for the application of State aid rules in relation to the rapid deployment of broadband networks (2013/C 25/01). Broadband Strategy 2030 28 of 37
Legislative measures at the state level The BMVIT strives to achieve a further easing of the official permitting procedures at the state level. To this end, the ongoing activities in the states of Salzburg and Burgenland are being evaluated in collaboration with all states to streamline the official permitting procedures for the construction of communication networks. The results will be implemented in state law. Timely allocation of frequencies in line with the European requirements The regulatory authority already allocated frequencies in the 3.4–3.8 GHz band in 2019 and is currently working to allocate further frequencies for 5G use. Frequencies in the 700 MHz, 1500 MHz, and 2100 MHz bands will be allocated at the beginning of 2020. Further spectrum bands for 5G use will be identified in international cooperation and will be provided to the market at the appropriate time. Coverage requirements in frequency allocation decisions The regulatory authority will include suitable coverage requirements in its decisions when allocating cellular frequencies in collaboration with the BMVIT and based on the objectives set forth in the Telecommunications Act. 6.3 Funding measures Refinement of the funding models Based on the present Broadband Strategy 2030, the BMVIT will draw up proposals for targeted funding in collaboration with the stakeholders in a new master plan for the promotion of the expansion of gigabit-capable networks and will seek the approval of the Federal Ministry of Finance. This is to facilitate the integrated planning of fixed-line and cellular expansion and thus reduce the administrative effort incurred by the companies. When creating funding systems, long-term financing models in the form of investment fund solutions and the taking into account of longer-term revenue expectations should also be evaluated. Broadband Strategy 2030 29 of 37
Creation of models to increase demand for gigabit connections
The BMVIT will prepare a proposal as to how the number of subscribers to the existing and
future gigabit networks can be increased.
Promoting research and technology development for gigabit applications
The gigabit society will be shaped by new kinds of mobile and stationary applications. These
will be made possible by the high availability, reliability, and security of the infrastructure as
well as by its rapid reaction times and high data rates. The tactile Internet28 will give rise to
interactive systems that meet real-time demands for human-machine and machine-machine
interaction (Internet of Things). Tied closely to the development of the broadband
infrastructure (fibre, 5G), the BMVIT will intensify research and technology development
activities in the areas of mobility and transport technologies, energy and environmental
technologies, key technologies for industrial innovation (ICT, production and
nanotechnology), in technologies for demographic change, and in space research. The most
promising use cases for gigabit applications will be identified through studies and exploratory
projects. In regionally based flagship projects, individual model projects of the broadband
Internet of the future will be developed in accordance with the local conditions and strengths,
in collaboration with stakeholders along the value creation chain. Each flagship project will
cover a range of interdisciplinary R&D activities all the way to test cases, will have selling
points unique to the location, will set an example beyond the borders of Austria, and will thus
increase the attractiveness of Austria as a pilot location for gigabit applications by 2021.
Promoting the market launch of digital applications and products
The full potential of a gigabit society will only be realised in the context of new and innovative
business models and when broad national value creation can be set in motion. To stimulate
the use of the broadband infrastructure, the BMVIT is planning to promote the market launch
of digital applications and digital products all the way to full commercial operation. The
public sector can serve as a reference for new applications and technologies in the sense of
innovation-promoting public procurement, including by implementing innovation
partnerships. There are a wide range of applications that are waiting to be developed in the
areas of “mobility and transport”, “commerce and industry”, “environment and energy”, and
“health care and social security”. Applications are expected for smart cities and the
28
The Tactile Internet, ITU-T Technology Watch Report, August 2014
Broadband Strategy 2030 30 of 37monitoring of critical infrastructure, automated goods production, robotics and telepresence,
virtual and augmented reality, health care, transport systems, and smart energy grids.
Stimulation of long-term technology development
Against the backdrop of this strategy that runs until 2030, fundamental technological
research into future telecommunication systems should be supported by funding to raise the
international profile of Austrian technology players.
6.4 Accompanying measures to facilitate infrastructure deployment
The BMVIT will draw up measures together with RTR to effectively reduce the resource
requirements associated with infrastructure expansion. Working with the state and municipal
governments, efforts will especially focus on minimising expenses for participating in
construction projects and infrastructure and on expediting construction projects. The legal
groundwork was already laid for this in the 2018 amendment of the Telecommunications Act. A
further amendment of the Telecommunications Act and other regulations should be considered.
Guidelines for co-investments
RTR will draw up guidelines for co-investments by infrastructure operators together with the
Telecom Control Commission (TKK) and in coordination with the Federal Competition
Authority (BWB) on the basis of the position paper “Infrastructure Sharing”29. A key factor in
this is identifying the legally reasonable framework in which collaboration between
infrastructure providers should be possible. These regulations must be based on the new
European regulations. These co-investment guidelines should be made publicly available and
will serve to provide legal certainty for future investments in this area.
Creation of the Digitalisation Agency
The Digitalisation Agency was set up as a unit of the Austrian Research Promotion Agency
(FFG) and is supervised and strategically supported by an expert committee. The
Digitalisation Agency conducts concretely defined projects together with the relevant
stakeholders in the five areas of “digital infrastructure”, “economy”, “education and society”,
research, development and innovation”, and “data protection and data management”. As a
29
www.rtr.at/de/tk/TKKPositionInfrShare2018/Positionspapier_TKK_Infrastructure_Sharing_2018.pdf
Broadband Strategy 2030 31 of 37platform for the coordination of different actors, it connects the relevant stakeholders and shapes the dialogue between businesses, society, and government about the different facets of digitalisation. It also works closely with the inter-ministerial task force of the chief digital officers (CDO) and advises the federal government in issues of digitalisation. Expansion of information and communication measures Broad sections of society are not entirely aware of the potential offered by the use of modern information and communication applications via broadband. The BMDW has created the platform “fit4internet”30 to promote the digital competency of Austria’s citizens. Targeted training is offered throughout Austria for the three focus groups of “senior citizens”, “working middle-aged persons with low IT affinity”, and “young career starters”. These modules impart knowledge about digital/online research and information procurement, communication, collaboration, content creation, and secure media use. The Digitalisation Agency lends support here through its DIAlog events and the Digital Austria31 platform. Improved coordination of the digitalisation projects in all agencies Through Submission to the Council of Ministers 21/12 on 7 June 201832, the federal government decided to set up an inter-ministerial task force to ensure cross-agency collaboration in digitalisation projects. The chief digital officers (CDOs) of all ministries are appointed to this CDO task force. The CDO task force is supported by the BMDW in its role as federal CDO and by the deputy federal CDO in the BMVIT. The CDOs coordinate the digitalisation projects in their own agencies, report on them during the CDO task force meetings, and support joint projects. They also coordinate their areas of activity with relevant regional authorities and/or businesses, if necessary. Broadband monitoring Central broadband monitoring will be set up in coordination with RTR’s newly created Central Information Office for Broadband (ZIB) and the BMVIT to facilitate the better management 30 www.fit4internet.at/ 31 www.digitalaustria.gv.at/ 32 www.bundeskanzleramt.gv.at/documents/131008/877075/21_12_mrv.pdf/b9e2a7d3-dc47-47af-83e2- b6412a72af23 Broadband Strategy 2030 32 of 37
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