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    DEVELOPMENT OF BROADBANDINFRASTRUCTURE IN BOR AND BRANICEVO

    DISTRICTS

    TECHNICAL AND ECONOMICAL VIEW

    DRAFT

    LAST MILE" BROADBAND SOLUTION IN EASTERNSERBIA

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    Balcan Broadband rural project - Phoenix

    The Phoenix Project

    This is for

    my Son

    and for all

    my fellow

    homolian

    villagers

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    This document was inspired by an unofficial group of people that worked hard

    during past 5 years only with strong dedication and involvement in providing high

    speed broadband internet to Homolie mountain rural area and its inhabitants,

    from 2006 until now, and also with great likeminded people, and strong support

    we have found in our online European community and especially on the EU

    Linked-in pages European Union Regional and Rural Development Participants

    ...

    SINCERITAS CITRA POMPAM

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    Content

    1. Background/Conditions ................................................................................ 8

    1.1. Geographic ..........................................................................................101.2. Situation before the project .................................................................11

    1.3. The needs of target groups .................................................................14

    2. Project description...................................................................................... 152.1. Project goals........................................................................................16

    2.2. Project alternatives and technical solution .........................................17

    3. How are decisions taken? .......................................................................... 19

    4. Model of financing ...................................................................................... 20

    5. Project results, subsequences and effects................................................ 21

    6. Recommendations ..................................................................................... 237. Anexes........................................................................................................ 26

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    Preface

    The phoenix (Ancient Greek: , phonix, Persian: , Arabic: ) is amythical sacred firebird that can be found in the mythologies of the Persians, Greeks, Romans,

    Egyptians, Chinese .

    A phoenix is a mythical bird that is a fire spirit with a colorful plumage and a tail of gold and

    scarlet (or purple, blue, and green according to some legends).

    It has a 500 to 1000 year life-cycle, near the end of which it builds itself a nest of twigs that then

    ignites; both nest and bird burn fiercely and are reduced to ashes, from which a new, young

    phoenix or phoenix egg arises, reborn anew to live again.

    The new phoenix is destined to live as long as its old self. In some stories, the new phoenix

    embalms the ashes of its old self in an egg made of myrrh and deposits it in the Egyptian city of

    Heliopolis (literally "sun-city" in Greek).

    It is said that the bird's cry is that of a beautiful song.

    The Phoenix's ability to be reborn from its own ashes implies that it is immortal, though in

    some stories the new Phoenix is merely the offspring of the older one.

    The European Commission has set highly ambitious objectives for broadbanddevelopment, because smart investments into high and very high speed broadband

    infrastructures are crucial to create jobs, increase economic performance and to unlock thecompetitive potential of the EU in the long term.

    The Europe 2020 Strategy ("EU2020") has underlined the importance of broadband

    deployment to promote social inclusion and competitiveness in the EU and has also set

    ambitious targets for broadband development. In 2010, the European Commission has

    launched one of the flagship initiatives of the EU2020 strategy, the Digital Agenda, which

    restated the objective of EU2020 to bring basic broadband to all Europeans by 2013 and seeks

    to ensure that, by 2020, (i) all Europeans have access to much higher internet speeds of above

    30 Mbps and (ii) 50% or more of European households subscribe to internet connections above100 Mbps.

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    It is estimated that to achieve the first objective, up to 60 billion of investment would be

    necessary and up to 270 billion for the second. Such investments will primarily come from

    commercial operators. However, the ambitious objectives of the EU2020 strategy and the

    Digital Agenda cannot be reached without the smart use of public funds. Public funding and

    State aid will play an important role to complement private investments and to extend

    broadband and very high speed, next generation access ("NGA") network coverage to areas,

    where market operators are unlikely to invest on commercial terms in the near future

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    1. Background/Conditions

    The facts:

    141902 Households

    449219 Inhabitants

    335 Villages

    15 Cities

    300 Villages with more than 200 inhabitants

    243 Villages with more than 400 inhabitants

    84 Villages with more than 1000 inhabitants

    The economy of the municipality of Bor and Branicevo district is in very poor condition. Most

    companies operate with losses and the privatization process is underway. Liquidity is one of

    many problems faced by enterprises, lack of financial resources and unfavorable credit policy

    prevents the revitalization of the economy. Decline in purchasing power of the population

    causes a drop in turnover of commercial firms. Most companies recorded declines in agricultura

    production and reduce capacity utilization.

    One of the most important problems in the municipalities of these districts is unemployment,

    with average unemployment significantly above the average of the Republic of Serbia (23%).

    This problem has become especially pronounced with the process of restructuring and

    privatization. Poverty arises here as an important general social problem. It can not be

    expressed only by the number of users MOP or number of users of the right to child allowance,

    but the inability to earn even for the average shopping basket. Crossreference this with the

    lack of education and learning facilities, and programes .

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    The area of our interest,Eastern Serbia in project proposal, is about 7000km2 and with more

    than 300.000 residents, about 100000 households-while 50-60% of urban area inhabitants have

    access to the broadband internet, in 2010 only 20-25% in rural areas In these sparsely

    populated areas, where income is generally low, private telecommunication operators do not

    want to invest because it is not profitable. Or they are investing but their services are over paid

    and bad quality . Only towns are cabled at present (the optical cable is one of the channels for

    the "broadband" and there are no plans to change this in the short term. If the market were left

    to decide, villages with populations of 5 000 or less would not be connected to the cable for

    another twenty years. it`s largely depopulated underdeveloped and with practical no way of

    developing sustainable industry,agricultural or modern IT society . This network must be the

    foundation stone of changing the people`s life for the better . Phoenix Innovative Approach ,

    for local community,against the digital divide, for e-inclusion, as a part of the actions of the

    CRD wants to change that. The goal is to make broadband Internet accessible to all inhabitants

    including those living in the most remote areas. As part of an ongoing experiment 147 villages

    in 3 counties (Bor Branicevo and Zajecar ) will be connected to the broadband, iptv - along with

    some inovative services that we are developing. What do we need broadband if we don`t know

    to use it or how to use the benefits of it?

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    1.1. Geographic

    Branicevo region occupies the territory

    3,865 km Population (census 2002)

    200,503 density 51.88/km The

    Branievo District ( ,

    Branievski okrug) expands in the north-

    east of Serbia. It has a population of

    200,503. Seat of the District is in the city of

    Poarevac, Settlements 189 Cities and

    towns 7 Villages 182

    Bor region occupies the territory 3,507 km

    Population (census 2002) 200,503 density

    41.8/kmBor District ( , Borski

    okrug) is a district (okrug) of Serbia with

    seat in Bor. It has a population of 146,551

    (2002 census).Municipalities 4 Settlements

    90 Cities and towns 6 Villages 84Population (census 2002) 137,561

    (source: Department of Statistics)

    1.2. Situation before the project

    When planning to implement a broadband data transfer network, the present situation was

    examined and the possibilities to use already built infrastructure and driven broadband network

    were investigated. The worst situation is in a mountainous region that includes the east, south

    and west, Serbia with 42% of the total territory of Serbia is the most rural region, which

    generally are characterized by abandoned land resources, shortages of labor, disorganized

    market and lack of adequate rural services. In this area has 20% of the population of Serbia, but

    the average population density in the lowest compared to other rural areas. Every third

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    resident has completed primary education, the employment rate is the least favorable in the

    country, and more than 35% of the employed population works in the primary sector, mainly in

    agriculture and mining. Realized domestic product per capita is only 53% of the national DP,

    and given the high share of primary sector, the region formed nearly 19% of the DP of theprimary sector of Serbia. However, the national domestic product region of the secondary

    sector accounts for only 10%, which is an extremely small proportion considering the area that

    includes this area. The economic structure is based on the depletion of natural resources and

    raw material production and industry-leading manufacturing and supply of electricity, gas and

    water.

    Agricultural areas make up 55% of the total territory, which is much less than in other rural

    areas, and lower productivity due to the modest investment and equipment holdings. The

    specificity of this region is a high percentage of unused land, particularly in the southeastern

    part, and the reasons are at a disadvantage in the age structure of population, lack of adequate

    machinery, unavailability of land and poor soil quality. Besides wheat, the major products,

    vegetables and raspberries growing in whose leading Zlatibor district, which deviates from the

    regional average and growing cattle, and the Raska district is one of the largest breeders in the

    country. Although the region has the greatest potential for tourism in Serbia, where some

    destinations like Zlatibor, Kopaonik, the Spa or Guca absorb over 60% of the national tourism

    traffic, pending infrastructural problems, which are remarkable in southeastern Serbia, cause

    continuous depopulation of the region, its economic marginalization and emphasized rural

    poverty.

    Serbia has more than 25% population with broadband connection,

    But this statistic hides serious inequalities, especially in the case of the broadband Internet and

    cable tv access. Profound differences exist in East Serbia between the urban centers and the

    small isolated, disadvantaged villages in the countryside or mountains.

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    In these sparsely populated areas, where income is generally low, private telecommunication

    operators do not want to invest because it is not profitable. Or they are investing but their

    services are over paid and awful . Only towns are cabled at present and there are no plans to

    change this in the short term. If the market were left to decide, villages with populations of 5000 or less would not be connected to the cable for another twenty years.

    Public workshops, education, continuing education, internet training rooms, ecdl training for

    every village inhabitants and farmers would be provided in the following 3 years of project

    implementation.

    Public Internet centers will be set up as bridgeheads against the digital divide.1

    Mobile connection operators also have enough explicated infrastructure, but the

    technologies (GPRS, EDGE, HSCSD) used at present time do not give opportunity to reach

    induced requirements for broadband networks (technological channel permeability

    restriction).

    In bigger towns of Bor and Branicevo regions smaller internet service conveyors present,

    but their services spread is not marked and their infrastructure according to territorial

    aspects is not explicated.

    1Digital Agenda website: http://ec.europa.eu/information_society/digital-agenda/index_en.htm

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    1.3. The needs of target groups Organizations and companies of regionmunicipalitiesAccording to the present situation in companies it is possible to segregate the most important

    needs of companies of region municipalities

    Possibility to exchange information between the institutions and companies of the regionmuch faster and operative;

    To reduce information exchange costs and outlays for ITT; To increase work efficiency of employees in administrative institutions of public sector; To increase the confidentiality of information exchange; To improve quality of public services offered;

    To establish the infrastructure for implementation of public electronic services.

    Households and business companies of the region

    83percent of Branicevo and 75 percent of the Bor region residents live in villages. The biggest

    part of the residents live in small townships, where there are no possibilities to use broadband

    internet connection. Present infrastructure development of data transfer, limited competitive

    surroundings and financially weak market of users do not compound presumptions for further

    development of broadband network infrastructure. One of the greatest needs of users

    (household and business companies) is a possibility to use broadband connections (mostly in

    villages).

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    The most needed types of services:

    1. Home use - possibilities to use broadband connections for teleconferences, to warrantsafety (possibilities to connect video cameras), to exchange huge data flows (video

    information, pictures, etc.);

    2. Workplace use - possibility to work in any place - unnecessary to drive to a workplace. Apossibility is compounded to use present appliques from home or clients office. A possibility

    to collaborate with associates by conferences and in video mode;

    3. Health protection - Patients and treatment specialists can use this type of service. Video

    conferences in real mode could allow patients to communicate with doctors with the help of

    video conference, it is possible to look after elder people with expedition;

    4. Purchases. Allows to search, review, and order and also pay for purchases by internet.

    With help of broadband connection part of the products (music, videos, movies, etc.) could

    be delivered by the internet;

    5. Public dominance. Due to broadband connections residents are allowed to use electronic

    services. In future the possibility to prosecute political debates and discussions of public

    groups with help of video conference would appear;

    6. The study. Broadband connection allows to study at the distance;

    7. Culture. Allows held aloof users to be informed about future/past events;8. Transport. With the help of broadband connection, users can get more information by the

    internet. Therefore, transportation expenses decrease and traffic jams on the roads as well.

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    2. Project description

    2.1. Project goals

    The goals of the project - to allow residents, companies, institutions of Bor and Branicevo

    region municipalities to use broadband data exchange network, to improve public institutions

    management of the region and quality of extended services.

    The results of the project - broadband data exchange network infrastructure is established,

    including "last mile" solutions, which marks 95 percent of the territory of the municipality. More

    than 300 public administrative, educational and other institutions are connected to seamless

    computer network and conditions are compounded for effective information exchange betweenthese institutions. The most part of the residents in municipalities of Bor and Branicevo region

    live in villages. There are 74.6 percent of the village residents in Bor region municipality and

    83.4 percent of all the residents of Branicevo region live in villages. Small and markedly

    scattered townships dominate on the territory. Present IT infrastructure is weakly developed,

    and broadband connection services are possible only in biggest townships.

    Households and business company's

    Opportunities of households and business companies to use internet services in small

    village vicinities are limited. Not enough developed infrastructure is one of the reasons which

    determines low rate of internet usage in the households of both regions.

    In order to solve present problems it is intended to create broadband data transfer network in

    municipalities of Bor and Branicevo regions. Broadband data transfer network establishment

    using the combination of optical and wireless technologies was chosen for effectuation of the

    project because of bad regional informational infrastructure and a great amount of scattered

    town ships on the territory. During the project broadband data exchange network infrastructurewill be established in the territories of Bor and Branicevo region municipalities, counting "last

    mile" solutions and public, administrative, education, etc. institutions will be connected to

    seamless computer network of Bor and Branicevo region.

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    The project will be effectuated in two stages. On the fist stage is the researchign and planning

    then building infrastructure is being established. The propriety of infrastructure will belong to

    municipalities of Bor and Branicevo region. On the second stage the established infrastructure

    will be given to the operator to maintain, that is for private juridical entity, which will be chosen

    in public contest in the way of competitive dialogue. An operating contract will be signed withthis operator. The contract with network operators will strictly regulate retention of infrastructure,

    the pricing aspects of services and will secure speedy broadband connection development in

    regions.

    The operator MUST agree that he would provide free broadband services fro

    townships and rural communes where it is not commercialy justified to rent the

    bandwith and where telecentres would be implemented (via another IPA project)

    Second goal

    Education e-education and continuous education ,the project that would capitalise

    from this Phoenix project.

    2.2. Project alternatives and technical solutionAt the moment all set of technological solutions is being used, which can extend broadband

    data transfer services: Cable modem. This solution is very beneficial when cable teleoperator network is

    developed on the territory but the prospect of technology and its development is obscure, as the

    equipment used is expensive, and more modern and more improvable solutions appear on the

    market.

    ADSL - asynchronous data transfer digital line. At its time it was one of the moderntechnologies, which formatted possibilities to extend broadband data transfer network for less

    expenses. But at the present time the imperfect speed is noticed when sending data, and the

    further edification of this technology created WDSL technology.

    WDSL technology is distinguished by very high permeability and has the prospect ofdevelopment. One of the main defects is a very small effective distance from a connection

    commutation unit to the ultimate user, just 1.2 km. This doesn't pander demands of a villageterritory, as residents are scattered on the big territory.

    FTTH is the most modern technology which gives opportunity to transfer big amounts ofinformation on the big distances. But infrastructure on village territories is not developed, and its

    expansion is very expensive.

    Wireless technologies. These technologies started to develop apace and improve togetherwith GSM network development. These technologies capacitate to extend broadband network

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    service on the big territory for small expenses. Because of standard solutions the installation

    and coordination of this equipment at last days is very simplified. One of the main defects is

    possible mistake generation while transferring data, but modern devices already have mistake

    correction solutions and mistakes display fractionally in modern devices.

    Perfection/modernization of created networks is very simple with these technologies and is notexpensive (actually only small units are changed).

    Four project effectuation alternatives were separated:1. Broadband satellite data transfer network;2. Broadband Optical data transfer network;3. Broadband wireless WLAN data transfer network ( 802.3 (CSMA/CD), 802.11B);

    4. Broadband wireless WiMAX data transfer network (802.16 standard);

    5. Optics and wireless connection technology network (optics + wireless connection).

    After application for financing from EU Structural funds was submitted the project had to

    be integrated with state IT development projects. The result is such:

    Strategy for the Development of Broadband Access

    in the Republic of Serbia project must include additional nodes and installed additional fiber-

    optical cables to the wireless towers. Bor and Branicevo project uses this infrastructure to get

    broadband to the towers. Bor and Branicevo project has chosen to use WiMAX technology to

    cover the whole region area.

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    3.How are decisions taken?

    The municipalities of Bor and Branicevo regions have supported the project. A feasibility study(investment project) will be prepared by the project partners. Later this feasibility study togetherwith the application will be submitted to Information Society Development subprogram (priority)under EU Structural Funds (priority No 3.3).The major problems in initiation phase:

    The project had to be matched/integrated with national project, The technical solution had to be modified as some time after preparation of feasibility study has

    passed and the solutions became old, The whole methodological approach has to be changed and adapted to the transnational

    cooperation with the enormous interest showed by the new project partners Infrastructure management model had to be selected,

    State aid rules had to be analyzed and carefully interpreted, Land ownership and projection must be done very carefully.

    The main impact to the region cannot easily be measured as the project is not started yet.The major problem is the selection of network Management Company. Currently the plan is to setthe tender to select a company for renting the whole network or a parrt of it and no decision hasbeen made yet. The management company will have to offer wholesale services to any companyat the same price. The other major problem is state aid.

    Land ownership and projection problem

    The projection phase must be done very carefully, as land owners are not willed to acceptchanges in their property. Even if land intended to build infrastructure belongs to municipality, alot of efforts to convince surrounding land owners to change their plots is needed in order to getpower supply. Land owners are not willed to accept power lines go through their land, as itdecreases land price and usable land area. The alternative is to use existing towers but that mustbe arranged by the state or state owned telecommunication provider.In order to bridge this problem land for building towers must be selected very carefully, taking intoaccount:

    land ownership, availability of electricity, Suitability for the tower to serve wide reception area (the higher stands the tower, the wider

    reception area is served) - the land must be on higher grounds.

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    4. Model of financing

    The project is financed exclusively by public sector. No private sector financing will be used. Borand Branicevo region municipalities would have to apply to get financing from EU Structural funds,3.3 measure Information society development".

    Investments of the project consist of 4 main parts: Network equipment Central units (server) equipment;

    Computer Equipment; Consultative expenses

    Approximately 90% of the budget is dedicated to infrastructure development, and the rest of

    the budget is used for administrative purposes (audit, administration services, technicalsupervision, feasibility study and etc.). The biggest part of the project investment will costequipment purchase - 56 percent of all projects budget. Construction works in project structure willtake 34 percent. The interesting point is that feasibility study must be prepared before theapplication.

    Operational model

    Operational model is based on renting the infrastructure to operator.As infrastructure is based on Wireless / WiMAX technology, the operator must process

    WiMAX license. Currently RATEL in Serbia process such licenses. The tender participants will have

    to give a proposal only for wholesale prices (different prices for different bandwidth). The operatorwill have a right to offer retail services, but wholesale price will have to be the same equal to allmarket participants. The contract is intended to be signed for 5+2 years. The retail price will bemonitored but not regulated.

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    5. Project results, subsequences and effects

    The results of the project Appointed broadband data transfer network infrastructure in villages, where there is no

    beneficial electronic infrastructure development possibilities in the conditions of free market. The"last mile" infrastructure is established in the municipalities of Bor and Branicevo regions. Datatransfer network will cover 95 percent ofBor and Branicevoand Alytus municipality territory.

    Signed contract with network operator, who maintains established broadband data transfernetwork.

    After implementing the project all rural institutions and stakeholders would be connected tothe broadband network

    All institutions will be connected into inside network and will be able to use internetconnection. That way internet usage in Bor and Branicevoregion municipality institutions willincrease from 20 % to 60 - 86%, Internet will give conditions to increase wide information spreadand employees' competition.

    Subsequences of the project.

    It is planned that established broadband connection infrastructure given to possess it byprivate operators will decrease the price for internet services in villages. This will institute

    conditions for internet permeability to upsurge rapidly in Bor and Branicevoregion municipalities.Presumptive that during 2-3 years network operators will extend broadband internet services to35-50% households at least, where it is impossible to use broadband internet at thistime. In 2 years network operators will have at least 10.000 - 30.000 new clients(households, business companies and institutions) in Bor and Branicevoregion.

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    In this case internet plough in regions will raise more than 25%. During 3 years about 3000-10.000new work places are created in the sphere of services and datasphere of virtual information.Created broadband data transfer network of municipality institutions will institute conditions forrapid information exchange among institutions. More rapid information exchange will mean:

    Closer intercommunication between institutions; More effective public possession and control of publicinstitutions ; Better quality of extended public services;

    Significally improved the work efficiency of the public institutions in Bor and Branicevoregions andaccording to it, the gratification of the residents and companies' of extended public services isexpected to increase.Expenses for data/information exchange of municipality institutions decrease;Increasing of the quality of education, selfeducation and offering the access to te e-learnignsystems.

    The major confidentiality of exchanged information is warranted; Conditions are intended for educational institutions to use remote education programs; The infrastructure is being established, and for this reason public electronic services will be

    extended for the residents of the region and business companies; After the implementation of the project the computer literacy of the employees in

    municipality institutions will improve. Internet consumption in the households of Bor and Branicevo regions is increasing the

    established infrastructure will institute conditions for fast new user subordination to the datatransfer network.

    The effect of the project:

    The regional investment climate is improving;Broadband data transfer network will institute conditions for extension of more different servicesin regions (slow connection was not able to warrant it).The residents of regions will have better access to the resource information. Village residents willbe more informed and involved in social and economical activity of the region. Residents (theircommunities) will be able to involve themselves into remote studies, use e-business and e-medicine services.Project implementation will institute conditions to decrease social- economical gap between

    villages and biggest country towns. Conditions are instituted for residents, institutions, companiesof the regions to present e-services. The use of electronic services will determine hyper workefficiency and reduced transportation expenses.Conditions are instituted for region residents to obtain ITT skills and this will enable them to adjustit to professional activity, proximately increasing labor remit of the region, and institutingconditions for less unemployment in the region.

    Potential marketThe establishment of infrastructure by municipality resources will institute conditions for operatorsto decrease investment needs for infrastructure establishment in commercially off-puttingterritories. Less private operator investments will institute assumptions to cut prices for extended

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    services and to inscribe major resources for popularizing new products, which will proximatelyincrease permeability of internet consumption in Bor and Branicevo regions. With reference topresent information almost 60% of Bor and Branicevoregion municipality residents at this time donot have opportunity to use broadband data transfer networks. In this case potential market ofbroadband data transfer network in Bor and Branicevo region is at least 10 thousand households,

    Educing pessimistic presumption, that network operators will reach only 40% of internet

    consumption work, and broadband internet connection price for residents will reach 1000 din (10eur) per month, and for companies 3000 din (30 eur) per month, then credible income of operatorsin Bor and Branicevoregion municipality would be about 10 million din (100.000 eur),

    6. Recommendations

    Technology

    Technologies are developing very fast, so the latest technologies must be used. This is whyinvestment project must be not older than 1 year old, otherwise investment project must beupdated.It seems, that the best solution is to utilize STATE fiber optic cable infrastructure together withwireless technology for last mile in under populated areas.

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    Financing

    Bor and Branicevo last mile case would be financed from state and EU Structural funds. There isno chance for such projects to be financed from EU SF from 2012-2013 financing period. Theoverall budget for broadband networks is estimated to be 80 million din . So the only other

    financing solution is national/municipality budget or public- private partnership.

    Problems during initiation and implementation

    Major problems address during project initiation and implementation:

    The project had to be matched/integrated with national projects, Infrastructure management model has to be carefully selected, State aid rules have to be addressed while selecting infrastructure management model and

    must be addressed before project implementation,Land ownership and projection phase must be done very carefully (especially power supply

    problem).

    Brief comments on some key issues :

    (1) Approaches or projects that involve application or dissemination of technology (no matter

    what), tend to be driven by the technology side, and target the macro-level in recipient countries,

    even in the cases when the end-users or beneficiaries are local people.

    (2) This project appears to be supply driven. That is, it is not clear that there is a demand, particular

    in the rural areas, and among a majority of the population. How to build that demand?

    (3) The type of "network" that is referenced here would seem to emphasize the technological side.

    Contrary to this, the type of network that I am concerned with are basically human direct

    interaction networks that have evolved, through use of ICTs, into virtual networks. I have built and

    maintained a number of such networks, for specific purpose foci and activities. Throughout, the

    focus is on the individuals as the key nodes that constitute the network (and not, e.g., computers

    and servers).

    (4) In ICT projects there is a tendency to focus on the form, that is, the mediating technology, and

    less on the content, that is, what kind of knowledge and information that will flow through this

    network. Traditional network analysis, as originally developed in the social sciences, can say a lotabout the latter, and how to move from the former to the latter.

    (5) Culture vs. technology. I would like to make a plea for situating technology, any technology,

    including ICTs, within a cultural context. Basically, ICTs is nothing but means of reconfiguring and

    reconstituting traditional basic human communication, whether it it 1-to-1 or many-to-many. But

    in this lies also a danger, as technology very easily changes the message, the content of

    communication.

    by permission of Supras consulting ltd.

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    (6) Speaking only with reference to rural areas in Eastern Europe, t is not clear to me that the

    majority of the rural population understand how this is going to help them. And, furthermore, how

    to structure and present relevant capacity building to achieve this is far from clear.

    (7) Who will the users for broadband access in rural areas be, I wonder? My guess is that it will

    probably be a rather limited/small category? There is nothing inherently wrong with that. The

    concern this raises, however, is who gets direct access, and whether there will be controls to access

    (the key impediments or controls may turn out to be costs and hardware).

    (8) Capacity building will be necessary, primarily on issues like why this technology comes, why it is

    necessary, and how to utilize it. Furthermore, how it may necessitate changes in social

    organization - in public sector, civil society and private sector - and in the relations between them.

    (9) The digital gap does not apply only to developing economies, it is as evident in transition

    economies. More importantly, in countries that have embarked upon the road to modernization viause of ICTs, a domestic digital gap can be found, often along the lines of the traditional urban-rural

    dichotomy.

    (10) Knowledge is power. ICT gives access to power, which means that there are very real

    possibilities that ICTs will lead to increase in differences between those that are informed /

    have knowledge, and those that are not informed, and do not have knowledge.

    (11) Civil society is incipient in Eastern Europe. A democratic implementation of your project

    would depend on high levels of transparency and decentralization, together with ability to

    associate formally, which today is not available in large parts of Eastern Europe.2

    2SUPRASMr. Lars Soeftestad, CEO. Supras Consult Limited (registered in Norway and UK)www.supras.biz

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    ANEX I

    Household Download Index

    Based on millions of recent test results from Speedtest.net, this index compares and ranks

    consumer download speeds around the globe. The value is the rolling mean throughput in Mbps

    over the past 30 days where the mean distance between the client and the server is less than 300

    miles.

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    ANEX II

    ANEX III

    Technological opportunities for further development of the Project Idea

    Internet and communications

    MAIN NODES

    Backhaul links, inter communities links, combination of fiber and wireless links

    Servers, NAS, stations, multicast servers- heart of the network. Dataloggers: measurement

    equipment

    MEDIUM NODES

    Links, last mile links, connecting the villages, measurement equipment

    SMALL VILLAGE NODES

    Wireless local links, end users

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    Entertainment and e*content providing

    Establishment of a fully independent channel of communication phones and Skype video calls

    through the IP network protocol or the Internet,

    Establishment of independent media channels for distribution of digital television, digital radio, (in

    Serbia is transferred to the digital DVB-T H.264 4 as of 2012) which will be distributed to end-users

    via cable or the Internet. Without paying licenses for frequencies and the like. Therefore an

    increase of good quality of entertainment for a fair price.

    Climate change and weather monitoring

    Unifaied Data loggers connected to LAN network and links, with unique MAC addresss-es and ip

    addresses . Data loggers are connected with sensors, for measuring wind speed/direction and solar

    radiation. Also they are connected with mini climate stations. Data loggers are safestoring the

    measured data on several displaced servers for safety.

    RAPID response systems

    Alternative network for audio /phone and video communication, in case of natural or other disastercan dedicate nearly all resources to the people in need.

    safety servers storing and keeping data safely.

    Smart networks Internet III

    NAS, Mulitcast servers, Internt caching, Multicasting for the digital radio and tv, local network

    usage and utilisation.

    Education and e-Education (Remote education)Rural Education Project,

    Creating a reading room, mini-classrooms in the villages, the collection and storage of digital data

    to the volunteers or members of the village, traditional music, old pictures, videos, clips,

    interviews, scanned documents via a network infrastructure - the scientific impact and opportunity

    for development for our people, to show what we can, from the poverty we can extract only the

    knowledge and perseverance. And respect for our forefathers.

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    - Prepare workshops and training facilities using internet in remote areas basics

    - Internet for rural areas pamlflets

    - ECDL preparation and training

    - Protection online

    - Protection from abuse and child safety

    - Constant learning advocacy

    - Constant reading advocacy

    - Self developiing and healthy living

    - Renewable energies: Training for solar and wind utilisation and repair

    - Using the internet and renewable resources for better farming or live stock breeding

    - Ensure transparency in decision making, establish good governance and encourage public

    participation and citizenship

    - Rising awarenes of e*government and distant learning systems DLS

    Provide the appropriate conditions for safe living, maintaine social cohesion in the city center andrevitalize the city center

    Strengthen social welfare and solidarity for the citizens

    Implement comprehensive active inclusion strategies for the socially disadvantage groups such as

    immigrants, homeless, substance users

    Safeguard a decent socio-economic living standard for vulnerable groups through upgrading of

    their skills, their inclusion in the labor force and their income and through the reduction of their

    concentration in the city center (population diffusion)

    Safeguard the provision of high standard social services, especially in education, healthcare,

    social insurance and welfare to all citizens by upgrading these services

    Erase of awareness on sustainable development, especially to residents and other stakeholders

    and beneficiaries

    Strengthen the social policy of local authorities and governments of EU member states

    Good governance, transparency and participation of all interested parties in the design,

    implementation and monitoring of policies

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    Energy

    All the power companies needs the various data and fast. They spend hundreds of thousands of

    euros in wind measurement which are implemented by untrained teams, solar measurement is

    expensive, we offer a middle way solution , and laying a founding stone for future smartgrids:

    By 2050, the power system needs to look a lot different to todays.

    This creates huge business opportunities for the information,

    communication and technology (ICT) sector to help redefine the

    power network. Because a smart grid has power supplied from a

    diverse range of sources and places, it relies on the gathering and

    analysis of a lot of data. Smart grids require software, hardware and

    data networks capable of delivering data quickly, and of responding to

    the information that they contain. Several important ICT players are

    racing to smarten up energy grids across the globe and hundreds of

    companies could be involved with smart grids.3

    3Battle of the grids 2011 Report by Greenpeace

    European [R]evolution

    How Europe can go 100 % renewable and phase out dirty energy

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    ACTIVITIES :: Broadband :: Wireless

    Wireless

    Wireless technologies are increasingly important in meeting the need for broadband

    communication services.

    Spectrum has been designated for electronic communication services, technically optimised in

    particular for wireless broadband access through several Commission Decisions, but in many

    Member States substantial parts of this spectrum are still subject to restrictions on assignment or

    parts of it have not been assigned at all.

    As demand for wireless services increases, the key priority will be to make effectively available to

    users those frequencies that have already been earmarked through harmonised allocations,

    including radio spectrum to be released from the digital dividend and from the reutilisation of

    frequencies hitherto reserved for second-generation (GSM) services. Secondly, sufficient and

    appropriate spectrum for both the coverage and the capacity needs of wireless broadband

    technologies should be designated and made available to achieve the target set for 2020.

    Broadband development can be further enhanced by pro-competitive measures such as the

    introduction of spectrum trading and measures to prevent potential distortions when existing

    licences are modified.

    The Commission is proposing coordinated action to achieve these objectives in its first draft multi-

    annual Radio Spectrum Policy Programme, submitted for adoption by the European Parliament

    and Council. However, individual Member States could help achieve the broadband coverage

    target rapidly if they immediately adopted policies to:

    * Make available sufficiently large bands of spectrum

    * Award rights of use quickly;

    * Increase flexibility and competition;

    * Allow secondary trading to adapt to market developments.

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    For Radio Spectrum Policy Programme see: here

    http://ec.europa.eu/information_society/activities/broadband/wireless/index_en.htm

    The Commission adopted on 20 September 2010 its proposal to the European Parliament and

    Council for a first Radio Spectrum Policy Programme which outlines at a strategic level how the use

    of spectrum can contribute to the most important political objectives of the European Union from

    2011 to 2015. The proposal is part of a package of measures regarding broadband

    communications; wireless broadband is essential to deliver the target of broadband for all by

    2013, which is one of the key goals of the Digital Agenda for Europe.

    http://ec.europa.eu/information_society/policy/ecomm/radio_spectrum/eu_policy/rspp/index_en.h

    tm

    I want us to be able to lift our investment in broadband through deeper cooperation across the

    industry and different levels of government. But I want to be clear that I wont heistiate to use new

    powers under the telecoms rules entering into force in May 2011 to ensure appropriate and

    consistent application of remedies.

    http://blogs.ec.europa.eu/neelie-kroes/nga2011/

    http://blogs.ec.europa.eu/neelie-kroes/

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    THE PROPOSED MAIN WIRELESS TO OPTICAL NODES :

    SR

    Bor - Majdanpek

    Zajecar

    Petrovac-Zagubica

    Kucevo

    Veliko Gradiste - Bela Crkva

    RO

    Moldova Noua - Oravita

    Drobeta Turnu Severin

    Calafat

    Izvorele-Vanju Mare

    BG

    Kula - Vidin

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    Imagine the homolian sheephearder that has his little youtube channel where potential

    buyers can see the bringing out the lambs, how are the sheeps tended and fed, how they

    prepare the sheep and goat cheese ....

    This product he can order directly via broadband and deliver from the mountain to the plains of

    Serbia Romania and Bulgaria. ... :)

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    Digital Agenda: Vice-President Kroes calls on 21 Member States to take urgent measures on

    mobile satellite services

    Neelie Kroes, European Commission Vice-President for the

    Digital Agenda, has issued an urgent call to twenty one EU

    countries to rapidly introduce all the legislative measuresnecessary to allow the pan-EU deployment of mobile satellite

    services that could be used for high-speed internet, mobile

    television and radio or emergency communications to EU

    consumers and businesses. According to the timetable agreed by

    a Decision of the European Parliament and the EU's Council of

    Ministers in 2008, Mobile Satellite Services (MSS) should be deployed in all EU Member States by

    May 2011 at the latest (MEMO/09/237). But, more than twenty months after the Commission

    selected two operators to provide such pan-European services, 21 Member States have not yet

    adopted all the national rules needed to facilitate MSS deployment. Vice-President Kroes recently

    appealed also to the two operators concerned to step up their efforts. The key role that wirelessbroadband (both satellite and terrestrial) can play to ensure broadband coverage, including in

    remote and rural areas, is underlined in the Digital Agenda for Europe (see IP/10/581,

    MEMO/10/199 and MEMO/10/200).

    Neelie Kroes said: "Member States should urgently take all measures necessary to allow the

    introduction of mobile satellite services throughout the EU. Mobile satellite services have an

    important role to play in providing innovative services to businesses and citizens across Europe,

    including in rural or remote areas, and in meeting our Digital Agenda targets of making broadband

    available to everyone in Europe."

    Twenty one Member States have not yet put in place all the necessary legislative measures to allow

    Inmarsat Ventures Limited and Solaris Mobile Limited, the two operators selected in May 2009 to

    provide pan-European mobile satellite services, to offer mobile satellite services from May 2011.

    Vice-President Kroes has written today to the twenty one Member States in question urging them

    to remove remaining legal uncertainties, such as licence fees, and to put in place all necessary

    implementation measures without further delay. The twenty one Member States are Belgium,

    Bulgaria, Cyprus, Czech Republic, France, Germany, Greece, Hungary, Ireland, Italy, Latvia,

    Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and

    the United Kingdom.

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    Background

    The Commission proposed to create a single selection and authorisation process for mobile

    satellite services (MSS) at EU level to facilitate the emergence of a Single Market for mobilesatellite services and maximise its potential, to the benefit of consumers and businesses.

    The approach was endorsed by the European Parliament and the EU's Council of Ministers on 30

    June 2008, when they adopted a Decision for the selection procedure for MSS to be organised at

    European level (IP/07/1243). The Decision established a selection and authorisation process that

    ensures a coordinated introduction of MSS in the EU. On 13 May 2009, the Commission selected

    Inmarsat Ventures Limited and Solaris Mobile Limited as the pan-EU mobile satellite service

    operators (MEMO/09/237).

    For more information:

    The study on measures taken by Member States for the introduction of mobile satellite services

    can be found here:

    http://ec.europa.eu/information_society/policy/ecomm/current/pan_european/index_en.htm

    Neelie Kroes' website:

    http://ec.europa.eu/commission_2010-2014/kroes/

    Digital Agenda website:

    http://ec.europa.eu/information_society/digital-agenda/index_en.htm

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    Danube

    Key Issues

    Transport

    Basin has a lot of potential for sustainable continental voyage, and the river itself has a central

    place. This requires improving the management, availability of equipment and qualified

    personnel.Physical capacity of the Danube and its tributaries should be increased, and remove

    existing obstacles in order to ensure the proper level of buoyancy, NAIADES implementation of

    programs and respecting environmental laws, based on the "Joint Statement on Inland Navigation

    and Environmental Sustainability in the Danube River Danube. Innovative technologies should be

    supported, in accordance with market needs. Better training and career development should be to

    overcome the lack of young personnel (sailors, captains, etc.)Road, rail and air infrastructure is often inefficient or simply missing, especially when it comes to

    cross-border links. Implementation of TEN-T priority projects and rail corridors under Regulation

    (EC) No 913/2010 must be done on time. Since agreement on the transportation community

    provides better integration of the Western Balkans. Multimodality and interoperability, through

    the exploration potential of the river as a key element in modern logistics, of crucial

    importance. Needed are also links izmeu north and south. Danubian Functional air block (FAB) is

    essential for the management of flights, as well as improvement of regional airport capacity.

    Energy

    Periodic crises highlight the vulnerability of the region. The quality of infrastructure, security of

    supply, the organization of the market unviable requirements, energy efficiency and renewableenergy sources are often problematic. Modernization and expansion of power networks, especially

    in terms of interconnection, through the implementation of the Programme for the European

    energy recovery and strengthening of the TEN-E network is essential. It is necessary that there is

    exchange of experiences, particularly in the field of"smart grid", "smart cities! And eco-

    innovation.

    Culture and Tourism

    With a common history and tradition, culture and art that reflect the diversity of communities in

    the region, as well as an exceptional natural heritage, the region is an attractive asset. The Danube

    Delta is a world heritage building, which offers sports and other recreational opportunities. Only a

    common and sustainable approach to improving the publication of these resources should makethe Danube region to European and international brand.4

    4Brisel, COM (2010) 715 / 4 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT,EUROPEAN COUNCIL, THE EUROPEAN SOCIO-ECONOMIC COMMITTEEAND REGIONAL COMMITTEEEU Strategy for the Danube region{SEC(2010) 1489}{SEC(2010) 1490}{SEC(2010) 1491}

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    Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond

    measure. It is our light, not our darkness, that frightens us most. We ask ourselves, 'Who am I to be

    brilliant, gorgeous, talented, and famous?' Actually, who are you not to be?

    You are a child of God. Your playing small does not serve the world. There is nothing enlightened about

    shrinking so that people won't feel insecure around you. We were born to make manifest the glory of God

    that is within us.

    It's not just in some of us; it's in all of us. And when we let our own light shine, we unconsciously give

    other people permission to do the same.

    As we are liberated from our own fear, our presence automatically liberates others.

    Maryanne Williamson