[CAnet - news] Amsterdam deploys fiber to the home network

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Press Release
Amsterdam deploys fiber network

Best offers by BAM/DRAKA and BBned, start first 40,000 connections in 2006
The Municipality of Amsterdam is to become one of the shareholders of
Glasvezelnet Amsterdam BV (GNA). The municipality (1/3) plans to
participate together with five housing corporations (1/3 of shares) and
investors (1/3 of shares). GNA will deploy approximately 40,000 fiber-tothe-
home connections in the boroughs Zeeburg, Oostwatergraafsmeer
and Osdorp (10 % of Amsterdam). The Mayor and Alderman have agreed
to put this decision to the City Council. The economically most favorable
offer for the construction of the network has been made by the
consortium Van den Berg Infrastructuren (BAM)/Draka Comteq Telecom.
The economically most favorable offer for exploitation of the network as
a wholesale provider has been made by BBned .

Deputy-Mayor Mark van der Horst (infrastructure, harbor, fiber): "With GNA
and the offers by respectable companies we make a big step towards the
deployment of a citywide fiber-to-the-home network. This enables our city to
compete with other European cities. The fiber network delivers to Amsterdam
an innovative and freely accessible infrastructure, suitable to support
growth in demand for the next 30 years or more. In this way we ensure a wide
open marketplace for innovative service-providers and economic growth, as
well as a fast track for the smarter and cheaper delivery of care, education
and other public services."

Three layers
The network in Amsterdam is structured in three separate layers:
- Infrastructure: GNA will commission the construction of the passive
network and own the fiber infrastructure in the local loop. Van den Berg
Infrastructuren (BAM)/Draka Comteq Telecom have submitted the
economically most favorable offer for the construction. "Smart digging",
like laying cables together with utilities will be used as much as
possible.

- Exploitation: a wholesale provider who rents the infrastructure from
GNA activates the local loop. BBned (Telecom Italia) has submitted the
economically most favorable offer for the exploitation of the network.

- Services: The network is as open as possible (within practical and
economical limitations) for service providers: commercial, non-profit,
public services, large or small, traditional or very innovative. The
service providers are able to purchase transport capacity at
nondiscriminatory conditions to deliver services to their customers.

History
The City Council instigated in 2002 the construction of a fiber-to-the-home
network, starting in the borough Zeeburg. An advisory committee chaired by
former Minister of Economic Affairs Koos Andriessen has investigated how to
realize this goal. The City Council has set the conditions for investment in
2004. With the results of the European tenders and the establishment of GNA
these conditions are met.

Market Economy Investor, no state aid

The shareholders of Glasvezelnet Amsterdam BV invest under the same
conditions in a profitable business with an acceptable
risk/reward-relationship.

The investment of the Municipality is therefore according to the Market
Economy Investors Principle (MEIP). There have been several informal
contacts with the European Commission on the criteria and conditions
regarding the MEIP. Deputy-mayor Van der Horst "I'm glad all signs read
green. To be crystal-clear: the Municipality does not subsidize and gives no
additional guarantees. We invest as local government in a promising
innovation, on equal terms and conditions as our partners."

Housing corporations: connecting homes
The housing corporations invest in the local loop connecting their property
through Glasvezelnet Amsterdam BV. Joint investments through this limited
company are cheaper, easier and profitable. After consultation with the
Minister of VROM (Housing, Spatial Planning and Environment) the structure
of the investment by Woonstichting de Key, Algemene
Woningbouwvereniging, Woningstichting Rochdale, Woningcorporatie Het
Oosten and Stichting Ymere in Glasvezelnet Amsterdam has been
determined. Anticipating the new "Besluit Beheer Sociale Huursector" (the
regulatory framework for social housing corporations) they will invest this
commercial activity through a separate entity with specific financing.

Planning and decisions
The proposal of Mayor and Alderman to the City Council to agree to
participate and invest in Glasvezelnet Amsterdam BV for approximately 1/3 of
the share capital will be discussed in the Council Committee later this
month
and shortly after voted upon in the City Council. The other shareholders of
Glasvezelnet Amsterdam BV will follow their individual formal decision
procedures. It is expected that the shareholders agreement can be signed in
December 2005. The construction of the network and the subsequent delivery
of services will start in 2006, to be finished at the end of 2007. The test
of the
conditions for MEIP by the EC is expected to start after the signing of the
shareholders agreement.
Amsterdam, November 3 2005
Stefan Rutte, Public Relations, +31 20 5523409 +31 612 991 725
For more information, see www.citynet.nl
(This is translation of the original Dutch press release. In case of
inconsistencies or doubt the
Dutch version prevails)




 See attached, also at www.citynet.nl

Comments at:

http://www.telepocalypse.net/archives/000812.html 

http://eurotelcoblog.blogspot.com/2005/11/afterthoughts-cycling-home-this.ht
ml

http://eurotelcoblog.blogspot.com/2005/11/and-answer-is.html

http://gigaom.com/2005/11/03/amsterdam-builds-its-own-fttp-network/ 


grtz
Dirk

--
"At each stage folks say, we don't need to go to the next level. But
we always do."
-- Bob Metcalfe, Ethernet inventor




-- 
"At each stage folks say, we don't need to go to the next level. But we
always do." 
-- Bob Metcalfe, Ethernet inventor




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