"Next Generation Networks" (NGN) are packet switched networks, supporting generalized mobility, allowing consistent provision of electronic communication services to users and enabling the use of multiple broadband transport technologies. They support a given level of quality of service (QoS) while the management of the network is independent of the management of the services. As such, they encompass various technologies - fixed and mobile - different hierarchical levels in electronic communications networks - interconnection network and access network - and facilitate the operation and integration of network management.
Given its potential to provide the user with bandwidth for Internet access which is much faster than currently provided, along with the high levels of investment involved, it is the access network with its various technologies which has been the focus of debate at international level.
According to EC Recommendation C(2010)6223 "Next generation access (NGA) networks means wired access networks which consist wholly or in part of optical elements and which are capable of delivering broadband access services with enhanced characteristics (such as higher throughput) as compared to those provided over already existing copper networks. In most cases, NGA are the result of an upgrade of an already existing copper or coaxial access network".
Given the huge investments involved in NGA construction, most of which is directed at the construction sector and the need to maximize returns from recently made investments - particularly in the case of other authorised operators (OAO), and specifically those investments linked to the unbundling of the metallic pair local loop - and also with a view to the preservation of conditions necessary for competition in the market - the deployment of NGA calls for careful oversight and analysis by regulators.
In line with several similar entities at an international level, ICP-ANACOM has been developing a regulatory activity in order to put conditions in place which are appropriate to the proper development of NGA in Portugal.
Government also has an important role to play in implementing measures which – while always respecting the preservation of conditions of healthy competition - are aimed at ensuring a legislative framework and institutional conditions which support the speedy deployment of NGA. This is particularly, but not exclusively, the case in rural and/or disadvantaged areas (particularly in terms of broadband services) where, due in large part to greater population dispersion, costs are typically two to three times higher (Ovum, 2008).
Within this framework, several operators in Portugal and around the world are deploying NGN on a large scale, particularly transmission and switching sections, but also access networks, implying the coexistence of these networks with traditional networks based on circuit switching.
All this is occurring in a context where investment in NGN/NGA is expected to have a significant social and economic impact, particularly in sectors such as education, health, social work, mobility, logistics, security and justice, contributing to the generation of skilled employment.
Given the limitations of available information, the uncertainty about future investments and market developments and the current economic climate, it is difficult to make robust predictions of a quantitative nature. Nevertheless, it is expected that NGN/NGA will contribute to the creation of a significant number of skilled jobs in Portugal, in addition to temporary jobs associated with the infrastructure deployment phase.
It is also expected that, with the widespread adoption of NGN/NGA, there will be a significant reduction in energy consumption (by networks/equipment) leading to a reduction in carbon emissions. According to estimates released by the International Telecommunication Union (ITU, 2008), the transition from traditional technologies to NGN increases network energy efficiency, contributing to a reduction of CO2 emissions, which could total: (a) worldwide, a total of 460 Mt by 2020 and (b) at a European level, 330 kg per user over a period of 15 years. In a study (Ovum, 2009a), it was even reported that in the case of Sweden, if fibre was deployed throughout the country, the resulting energy saving would be equivalent to the output of a nuclear power station.
In this context, in June 2008, ICP-ANACOM published a pioneering study, awarded to Ovum (Ovum, 2008), on the impact of NGN on the market. This study identified the key drivers of deployment, characterized existing networks in Portugal, presented case studies at international level, analyzed the case of services using optical fibre, identified the key challenges of regulatory and government action and outlined a number of recommendations for the development of these networks in Portugal.
Meanwhile in June 2008, a public consultation was launched on the regulatory approach to NGA with the final was published in February 2009 (ICP-ANACOM, 2009). The goals of this consultation were:
a) To identify possible adaptations in the regulation of wholesale products in light of the expected evolution in access networks;
b) To enhance an appropriate regulatory approach which is transparent and consistent;
c) To compile information on any development plans for NGA which would enable ICP-ANACOM to better quantify the market impact and which would enable informed and timely action.
With regard to NGA, ICP-ANACOM has advised the government in the preparation:
a) Of Decree-Law no. 123/2009 of 21 May, which defined, at a basic level, the conditions of non-discriminatory access to physical infrastructure (e.g. ducts) in the national territory and established the legal regimes applicable to ITUR 1 and changes to ITED 2 which is already installed (an area which is incidentally also regulated by ICP-ANACOM);
b) Of Decree-Law no. 258/2009 of 25 September, which extends the obligations of access set out in Decree-Law no. 123/2009 to electronic communications companies and entities possessing infrastructure suitable for the housing of electronic communications networks used by the sector's companies, in addition to providing ICP-ANACOM which the means it requires to continue the inspection activities with are incumbent upon it pursuant to Decree-Law no. 123/2009;
c) Of the Public Tenders for the installation, management, operation and maintenance of high-speed electronic communications networks in rural areas.
Around eighteen months after the publication of the study by Ovum (2008), this paper seeks to present relevant case studies at an international level and report on the current situation with regard to NGN/NGA in Portugal, in particular with respect to the characterization of existing networks and operator offers, the implementation of various government initiatives and the various regulatory measures undertaken in this regard.
1 ITUR - Infra-estruturas de telecomunicações em loteamentos, urbanizações e conjuntos de edifícios (Infrastructures for telecommunications in housing developments, urban settlements and concentrations of buildings).
2 ITED - Infra-estruturas de telecomunicações em edifícios (Telecommunications infrastructure in buildings).
