There is a widespread belief in Portugal, as elsewhere, that investment in NGA has a very significant social and economic impact, especially in sectors such as education, health, social work, mobility, logistics, justice, security and energy (with particular attention to a reduction in carbon emissions resulting from energy efficiency gains in networks and equipment).
The evolution of access networks (driven by the demand side with the exponential growth of Internet traffic) has been observed in HFC networks, in networks consisting entirely of optical fibre and soon also in LTE mobile networks. As such, it is important to follow the rapid change and understand the details of the technology and architectures supporting the deployment of these networks, with the aim of analyzing their cost-effectiveness and the feasibility of any different investment sharing solutions with respect to network access - when and if deemed appropriate and proportionate in regulatory terms in light of the promotion of sustained competition.
At an international level, the development of high-speed networks will be the result of a combination of competitive strategies adopted by leading operators and the role played by the intervention of the NRA and the State.
The role of the state is essentially sub-divided into two components:
a) In ensuring transparent legislation that promotes investment in NGA throughout the national territory, while at the same time safeguarding a return for operators and conditions for sustainable competition;
b) Active participation in the deployment of NGA both through investment subsidies and by investing directly (often through PPPs, local authorities or the granting of concessions for the operation of NGA networks), particularly in rural and more remote regions, where investment is more risky and competition more difficult.
With respect to the strategies followed by the operators, it can be said that investments seem to focus on urban centres, where competition is possible and, in many cases, is already a reality. There is also some preference for FTTC over FTTH, although both scenarios remain valid.
With regard to the NRA, its role, particularly in an EU context, is reflected in the guarantee - through a regulatory framework which is simultaneously stable, transparent and predictable - of a climate which is conducive to investment throughout the national territory and is also conducive to the development of competition.
In this context, the main challenges that are anticipated for the NRA will, in particular, be related to achieving a balance between promoting investment in rural and remote areas and opening up networks in these areas through the implementation and ongoing oversight of potential wholesale obligations on markets related to NGA. This is coupled with analysis of whether or not vertical functional separation solutions are needed to facilitate the development of NGA, with the implementation of infrastructure record systems, with a range of issues arising from the widespread provision of bundled offers (e.g. analysis of predatory practices, relevant costs, SMP leverage in adjacent markets), and issues associated with net neutrality (e.g. levels of quality of service, free choice of services and non-discrimination).
The European regulatory framework is in a period of adjustment in light of the regulatory challenges mentioned above, noting the recent completion of the EC Recommendation on regulated access to NGA networks, which underlines the importance given to open access to these networks, at prices related to costs including a fair return on risk. Meanwhile, from the perspective of EC and with respect to migration from existing networks to NGA networks, it is equally important to ensure that alternative providers (in particular those currently benefiting from local loop unbundling) are provided with conditions which are transparent and reasonable and which are disclosed in a timely manner.
Note should also be made, at a European level, of the Community Guidelines for the application of State aid rules in relation to rapid deployment of broadband networks, according to which government action is justified to ensure that areas which operators consider non-profitable (i.e. areas where broadband networks do not exist and are not expected to be deployed in the near future by private agents, as well as areas where only a single broadband operator is present) benefit from the positive effects of NGA, avoiding a digital divide between these and other areas. It is also noted that these guidelines also highlight the need for an open access network, where it has been subsidized.
As far as Portugal is concerned, the situation has been characterized above all by a clear dynamism among operators founded on a determined and consistent regulatory activity, and state stimuli (even where non-monetary) to NGA development.
In terms of ICP-ANACOM's remit, note is made of the pioneering role of the reference ducts access offer determined by ICP-ANACOM – this reference offer has served as an example, at a worldwide level, of an offer which facilitates investment in NGA. Meanwhile, note is also made of ICP-ANACOM's continued role of providing advice to the government with regard to several of the measures outlined above and measures of general scope which maintain a transparent and predictable climate which is conducive to investment, and of the regulator's work in the development of market analyses, public consultations, the definition of technical specifications and review of wholesale reference offers, with a view to contributing to the elimination and reduction of vertical and horizontal barriers to NGA deployment and to ensuring appropriate conditions for migration from traditional networks to NGA networks.
The combination of government initiatives and regulatory measures undertaken have driven operator investments, whereby the number of households cabled with high-speed access already exceeds four million (70% with EuroDOCSIS 3.0 or equivalent and the remaining 30% optical fibre).
Even while, to date, the majority of investment has been focused on the most densely populated coastal regions, it is expected that NGA concessions awarded in rural areas will soon contribute to the national drive for digital inclusion.
