Digital Single Market
Digital Economy & Society

Ultra High Speed for everyone |Luxembourg

Article
In accordance with the national strategy for ultra-high speed networks, POST Technologies manage to connect more than 50 % of Luxembourg’s households with fibre by the end of 2015. After the development of the new FTTH point to point, multi-fibre, Open Access Fibre architecture, POST Technologies rapidly started the planning process and the deployment of the FTTH network to reach the required annual increase in coverage of 6-7 % in order to achieve the targets set by the Luxembourg government. This ambitious goal required a large scale deployment of an FTTH network with the participation of many entrepreneurs and installation firms within Luxembourg and the greater region.

Project type

Project type:

Basic information

Country:

Project submitted by

Name: 
Yves Koch
Organisation: 
POST Technologies
Phone: 
+35 249915316
Scope: 
national
Place address: 
Rue Emile Bian 2
1235 Luxembourg
Luxembourg
Time frame: 
From 01/01/2010 to 30/12/2017
Leading up-organisation: 
POST Technologies
Cost structure: 
Approximately 250 - 300 Mio EUR , for the passive FTTH Access Network - POP (70% for civil engineering works, 30% for installation, jointing and material costs). Due to the applicable regulations in Luxembourg that require operators to dig deeper trenches for the roll-out of electronic communication lines compared to most European countries, civil engineering works represent the largest cost during the deployment of fibre networks.. The regulations specify a strict set of standards concerning the minimum depths in which cables have to be laid, the required protection of cables by ducts or cable covers and the width of the final rehabilitation of the pavement.

Quality of service

Speed / performance: 
≥100 Mbps
Technology: 
FTTP/H
Service providers: 
POST Telecom, Tango, Luxembourg Online (LOL), Visual Online (VO), Cegecom, Orange
Number / share of households supplied: 
Date: September 1, 2015
Number: 112000
Percentage: 49
Date: June 1, 2017
Number: 140000
Percentage: 60
Number / share of businesses supplied: 
Date: June 1, 2017
Number: 2000
Percentage: 76
Number / share of public entities supplied: 
Date: June 1, 2017
Number: 800
Percentage: 50
Types of services:
Definition of standard service: 
Residential services: Internet Access from 30 Mbps down and 10 Mbps up to 1 Gbps down and 500 Mbps up, IPTV (with more than 130 channels in the basic package, in SD, HD and 3D)
Professional services: Direct Internet Access (DIA) up to 1 Gbps symmetric transmission speed, SLA

Financing

Share of sources
Private investments: 
100%
Reuse of revenues to expand coverage: 
The business plan which enabled the FTTH project, relies on given take-up rates, and thus revenus which are generated by unbundling of the deployed fibre. POST and ILR (Luxembourgish regulator) fixed the price for an unbundled fibre at 17,75 EUR per month.

Transferability

Participatory process: 
The project concept, an open access multi fibre point to point network could be easily transferred to other regions. Especially in regions where fibre deployments are pushed by municipalities or local utility providers, an open access network architecture will allow optimising the return on investment as it can be exploited by several operators.
Business model: 
private DBO

Cost reduction measures

Implementation of cost reduction regulation: 
Harmonizing measures/coordination of civil works
Use of conduits
Laying of conduits
Infrastructure sharing
Alternative construction methods: 
aboveground installation

Background

Unique characteristics: 
POST Luxembourg first laid FTTH in 1997, as part of a hybrid copper and optical fibre access network. During new constructions, modernisations of public networks, streets or the transformation of overhead cable network to an underground network, POST deployed hybrid cables (with copper pairs and optical fibres) to the customer instead of only copper cables. At that time, only the copper pairs were used and the fibres remained dark for later usage. It was only in 2008 that a programme was started to activate the dark fibres (splitters were installed in the network and the hybrid street cabinets were connected to the central offices). By the end of 2010 POST had connected approximately 18 % of the households to its point-to-multipoint (P2MP) GPON network. In order to prepare for higher broadband network capacity, it was decided to move to a point-to-point (P2P) architecture and provide every customer with four fibres, two of which are connected to an optical distribution frame. In 2010, POST Luxembourg started with the deployment of an Open Access Point-to-Point FTTH network on a large scale. As incumbent, POST can fully reuse a large duct network which otherwise could have been only reused partly. With ongoing FTTH P2P deployment, the existing P2MP infrastructure will be transformed in a P2P topology. Today Luxembourg has one of the regions most far-reaching and advanced FTTH deployment programmes with more than 50 % of the households connected by the end of 2015.
Success factors: 
POST Technologies is deploying an Open Access, multi-fibre network which is technology neutral. Per customer, 4 fibres are deployed where 2 are connected end to end from the customer to the POP (Point of Presence). The other two fibres remain as a reserve in the first jointing chamber but could be connected, if required, at a later time. Telecom operators have the possibility to access the customer's fibres at the POP. As the fibre network from the POP to the customers is a point-to-point architecture, operators are free to choose the technology they want to install in the POP (P2P Ethernet or GPON if splitters are installed inside the POP). For its FTTH project, POST Technologies has developed a modular POP design. Beside its existing central offices, new POP buildings will be constructed in order to further reduce the distance to the customers and to reduce the concentration of fibre cables which will have a positive impact on restore times in case of failures. Furthermore the construction of new POP’s will enable POST to abandon different legacy central offices (or parts of them) which are oversized for the future All-IP next generation networks. The size of the POP depends on the region’s specifications and hosts between 500 and 3000 customers.

Project review

Results: 
POST Technologies managed to reach the goals set by the ultra-high-speed broadband strategy of Luxembourg’s government which targeted coverage of services with 1 Gbit/s down and 500 Mbps of 25 % in 2013 and 50 % in 2015. Today Luxembourg has one of the regions most far-reaching FTTH deployment programmes that positions Luxembourg among the most advanced countries when it comes to very high-speed broadband which is a precondition to ensure the position of the Grand Duchy amongst European telecommunication centres.
Short description of added value: 
The FTTH deployment enabled POST Technologies to further strengthen its leadership in the deployment of ultra-high speed networks in Luxembourg. Furthermore, the ambitious large scale FTTH deployment required the participation of many entrepreneurs and installation firms within Luxembourg and the greater region and thus let to a general boost of the economy.
Technical potential for expansion: 
The deployed FTTH network is future proof as it is a point-to-point fibre network with 2 fibres connected per customer. Furthermore, it is technology neutral and open to future GPON and P2P Ethernet evolutions. With the project´s work, 60 % of households can be covered by 2017. After 2017, the expansion of the network will continue, but with lower cadence. POST Technologies will still continue to expand its FTTH network in regions where coordinated works are possible with other utility providers. Today’s planning foresees a coverage of more than 80 % of Luxembourg’s households with FTTH by 2023.