Description / Explanation
In response to the growing demand for faster broadband connections by businesses and households in the rural area of Noordoostpolder, the municipal government of Noordoostpolder, assisted by consultancy firm Stratix carried out a study showing that it could be commercially feasible for an operator to roll out a fibre-to-the-home network to all underserved homes and businesses in the rural area of Noordoostpolder without receiving state aid. A market consultation procedure carried out by the municipality Noordoostpolder confirmed the willingness of operators to roll out a high speed broadband network in the rural area without state aid. Through a transparent selection procedure that followed, interested operators were requested to provide their business plans. The municipality promised to promote the winner(s) as ‘most feasible option for the future’ in a demand aggregation process, but no state funding was given or promised. A newly established local operator FiberFlevo was selected as the winner. In order to make a healthy business case, FiberFlevo charged a one-off connection fee from end users and a participation threshold of 60% during the demand aggregation phase. FiberFlevo carried out a successful demand aggregation process with the support of the municipality Noordoostpolder and completed the roll out of the FTTH network in March 2018.
01/11/2015 to 01/03/2018
Project submitted by
Municipality of Noordoostpolder
Infrastructure & Service
Speed / performance
Infrastructure, technology and architecture
An FTTH network based on GPON technology had been deployed in the rural area of Noordoostpolder, serving about 3.000 households and businesses in total. The network equipment is initially capable of delivering up 1 Gbps data speeds and can be upgraded in the future to 10 Gbps and higher. The network is and open FTTH network, providing openness at the layer 1 level (physical unbundling) for service providers. The advertised maximum download and upload speeds are 250 Mbps (symmetrical).
Cost structure and financing sources
Costs of local government associated with technical and legal consulting and providing facilitating activities to FiberFlevo are estimated at EUR 200.000 (public funding). The costs of FiberFlevo associated with realisation of FTTH network: circa EUR 8.000.000 – 10.000.000 (private funding).
Was the project supported by EU funding?
Actors involved and their roles
Gemeente Noordoostpolder initiated the project (together with the province of Flevoland) , took the lead in carrying out a market consultation and selection process, and provided local support activities to FiberFlevo during the demand aggregation phase. FiberFlevo and partners rolled out a FTTH network in the rural area of Noordoostpolder. Local community provided support to FiberFlevo. Stratix, a telecom consulting company, carried out the pre-study and advised the municipal government to conduct a market consultation and carry out a selection process.
The market consultation and competitive selection procedure lead to the participation (and completion) of various operators and the selection of one winner (FiberFlevo). FiberFlevo found ways to make the project commercially feasible, by using methods to lower deployment costs and applying a business model where end users participate in the financing of the network (by paying a one off connection fee) . There was also a right synergy between the operator, the local government and the local community to make the project a success.
The presence of a high-speed broadband access network in the underserved rural area of Noordoostpolder improved the overall socio-economic climate. It enhanced the liveability of inhabitants and families, e.g. children need fast internet to make school assignments and people in the country side want to have access to the same digital services as people who live in areas where high speed broadband access is available. By enhancing the liveability of underserved areas, its inhabitants are more inclined to stay in the region (prevention of rural exodus). Improving the business climate for existing and new companies gave a boost to the strong agricultural industry in the region, e.g. enhancing the possibilities to adopt smart farming technologies. By enhancing the economic liveability of underserved areas, its businesses are more inclined to stay in the region (prevention of rural exodus).