FTTH: Amsterdam compared with Nuenen

In the Netherlands roll out of FTTH will happen at last. In Nuenen, according to the expectations, by the end of 2004 all households have been connected on the fiber optic network. Amsterdam has started with a public invitation to tender. Although the aim is the same, the approach by the municipalities is totally different.

Amsterdam is forging ahead with plans to connecting all 450,000 homes, businesses and organizations in the city with a fiber optic access-network. The Municipal Executive has declared that it strives for that open and universal infrastructure to reach every Amsterdam household, business and institution by 2010. The local authority will not be supplying those connections, but will entrust that task to an intended development company, Citynet Amsterdam (www.citynet.nl). This will be a communications network which is accessible to all service providers subject to the same favorable conditions, while ensuring that no vertical integration or undesirable monopolies emerge. With regard to the services, the underlying principle is that at least three basic types will be offered via this network: TV, telephone services and Internet data transmission(‘triple play’) plus services using low cost high bandwidth Intranet-type data transmission within the network.

Citynet Fiber Amsterdam will be the owner and financier of the passive infrastructure. The passive component of this infrastructure will then be let to a wholesale network operator for an agreed period of time (10 years) and the latter will operate the network subject to certain terms and conditions. This operator will be responsible for putting the network into service.

In Nuenen, 97% of the residents have signed a contract to connect their homes to the local fiber optic network. The residents, by their membership of the Nuenen Cooperative Telecom Association Our net, are joint owner and shareholder of the Network Exploitation Society (NEM). These NEM has given to Dutch company VolkerWessels the assignment to build broadband optic fibre network, with the guarantee that it must remain operational for at least 10 years. The construction of the fiber optic network will take place within the built-up area of the town of Nuenen. At the start, the services offered will be high-speed internet access and the opportunity to subscribe to a VoIP telephony service. The negotiations concerning radio - and television services are at an advanced stage.

In the short term, the approach of Nuenen offers many advantages above the approach in Amsterdam.

Marketing
The marketing in Nuenen is very successful. In a short periode one has reached 97% penetration. This success can be explained by the subsidy supplied by the Ministry of Economic Affairs. Every participating household acquires the right for complete compensation of the connection costs of 500 euro and the fee for subscription to high-speed Internet.

Project management
Nuenen realiseert de aansluitingen bijzonder snel. All houses of which become the eigenaren or tenants that have announced for 1 august next, to provide with a glass fibre connection for 31 December 2004. In Nuenen zijn initiatiefnemers, eigenaren, opdrachtgevers en contractonderhandeling namens de afnemers, allemaal bij één en dezelfde partij. Zowel de passieve als de actieve infrastructuur wordt door Volker Wessels geleverd. Dit maakt dat de slagvaardigheid groot is

Knowledge
In Nuenen there are a just a minor legal problems to solve. They don’n have to gain in-depth knowledge concerning all kinds of problems with NMa, OPTA and existing service providers. Also there are no complex organisational problems. VolkerWessels takes the responsibility for the design, construction, management and maintenance of the fiber optic network. Therefore, there are no uncertainties caused by lack of knowledge.

I belief the Amsterdam approach is more sustainable than Nuenen approach in the long run. There is more thorough knowledge of fiber optic networks and the organisation is much more robust. It seems history repeats itself. We'll still travel to Amsterdam go to the Van Gogh museum, although it was in Nuenen that Van Gogh painted most or his Dutch paintings. Amsterdam will draw a lot of attention, but Nuenen wil be the first Dutch town with a fiber optic network.