shared resilient infrastructure redundancy...telecommunications law mandates infrastructure sharing....

David Butcher and Associates

Shared Resilient Infrastructure Redundancy – Hon David Butcher

8 December 2016


Countries and Risks - Recent Example Kaikoura Earthquake


Origins of Kaikoura Town


Kaikoura’s main business Today


Risk Reduction and Kaikoura

• Geology one of many influences on infrastructure’s risk profile

• Even quality infrastructure can be destroyed in disasters

• Risk Reduction is focused on ensuring people can be saved

• ICT for Disaster Risk Reduction has several aspects:

Note that broadband is the common platform for ICT services

Planning ICTs for disasters; quality power and ICT infrastructure

Building large and small fibre “rings” to maximise redundancy:

Back-up technologies (eg VSAT, solar, generators) and evacuation plans

ICTs for information on infrastructure, damaged or destroyed

Sufficient spares, alternative routes and technologies to change quickly


Sources of Natural Disaster Risks

Cold

Dzud

Cyclone

- storms

Desert

Drought

Quake -

land-

slide

Errupt

ion Fire Flood

Land-

side

Tsu

nami

Typh-

oon

Bangladesh ® ® ® ® ®

Cambodia ® ® ®

China ® ® ® ® ®

India ® ® ® ® ® ® ®

Kyrgyz ® ®

Mongolia ® ® ® ®

Myanmar ® ® ® ® ® ® ®

Philippines ® ® ® ® ® ® ®

Sri Lanka ® ® ® ® ®

3 7 7 7 1 3 8 4 5


Impact on Citizens and loss of ICT Services

Business Transactions US$

Continuous Linked Settlement (CSL) Transactions: 1 million

Value (2013): $ 4.7 trillion each day

Economic Cost to AP Region Percent

Share of Economic Costs 50%

Private sector share of investment 70-85%

Share of Rehabilitation costs: 70-85%

Human Cost to Asia Pacific Region Percent

Share of all major disasters 43%

Proportion of disaster related deaths: 63%


Shared Resilient Infrastructure


To achieve it requires two firm POLICY PILLARS

Policy Goal: ICT services that benefit end user

Shared infrastructure creates a platform for service competition

Achieves the goals of the policy pillars

COMPETITION

discovers the lowest

sustainable price

EFFICIENT

INVESTMENT

long-term benefit to

end users


Sector Functional Separation:

policy, regulation, telecom business

and ownership in different agencies

Vertical Unbundling:

Competitive separated

from the monopoly

Exchanges in Servco Retail / Billing

Local access

National

International

Exchanges

Fibre broadband

Competitive Service

Competitive Services

Broadband a platform for competition

Policy Telecom

Business Regulation Ownership


Incumbent’s

incentive:

minimise

competition

Inter-

connection

disputes

• Bundled Network and Services: work against policy;

• Incentives are poor

Bundled Network and Services

New Entrant’s

Incentive:

duplicate

infrastructure retail /

billing

local

access

national

inter-

national

Services

Incumbent

retail /

billing

local

access

national

inter-

national

Services

Entrant


Unbundled network and services - Strong incentive - policy success

INCENTIVE:

maximise the

quality of service

INCENTIVE:

efficient

infrastructure

investment



Shared Fibre network

Broadband is encouraging separation: Platform and Services


Country Shared Infrastructure

Bangladesh Telecommunications law mandates infrastructure sharing. March 2016 there

were 3.112 million ISP/PSTN users (BTRC). Not open access.

Cambodia Private and publicly owned companies share based on commercial contracts.

Two fibre networks TC and CFOCN Not open access.

China 2 SOEs: China Telecom in 21 southern provinces, China Unicom in 10 in North. 100% towns connected. Fixed lines mainly for ADSL broadband access.

India Mobile tower company formed by merging large mobile networks. Potentially

open access. “managed capacity” to cut costs

Kyrgyz Republic Access to Kazakhstan: ring via Kazakh cities Chu and Merke. Very small

network.

Mongolia Very large fibre rings; State Owned backbone company not exclusive or

dominant player. 3 private mobiles each with network. Commercial sharing.

Myanmar Under-developed sector low levels of redundancy. Now three mobile

networks, fixed line network, backbone fibre. Not open access.

Philippines 9 gateways; Philippine Long Distance Telephone Co. controls broadband

infrastructure: high transit fees for other providers; slow broadband.

Sri Lanka Sri Lanka Telecom (SLT) policy is to share infrastructure. “National Backbone

Network (NBN) with the view of encouraging all operators to benefit”

Shared Infrastructure – selected ESCAP members


Co – location and managed capacity


Co Location and Efficient Investment

• Co-location of facilities - substantially reduces costs

• Shared easements can reduce cost of right-of-way, almost to zero

• Voluntary and regulatory encouraged separation Separate networks - services:

– lower INVESTMENT, greater redundancy

– encourages service level COMPETITION

– multiple networks - if efficient investment and at owners’ risk


Managed Capacity

• Managed Capacity means:

– manufacturer builds and manages network

– equipment, updated regularly then recycled

– ICT company can focus on running its business

– India achieved major cost reductions

– cheaper services for end users - citizens


Specialised Network Managers

• “easement managers”

• use existing facilities

• innovative solutions

• share power and telecoms facilities

Example: an “Underground overhead cable”


Spaghetti Junction, 1959 was a nice suburb;

– 2007 motorway (red) a barrier to cables

– specialists laid cable in 3 hours

– used existing ducts and easements

Central Motorway Junction


Installing Fiber within a Road Project Slide and Photos: Terabit Consulting USA

• USA (high labour-cost market), conduit+fiber installation during road construction costs from US$6000 and US$18000 per kilometre

• Roads cost at least USD$1.8 million per lane, per kilometre

• Cost of fiber network installation during open road construction: much less than 1% of project total


Pick the difference?

• Specialist network managers can:

– Save money by training workers to service ICT and power cables

– Power and ICT use similar trucks, similar tools, similar skills required


Benefits of Network Sharing

• Wellington to Lower Hutt (NZ)

– disused gas line adapted to carry cable, took 3 weeks not 3 months

– “Spagehetti junction” in Auckland - 3 hours not 3 days

• Paro Bhutan

– Cables strung on Bhutan Power Corporation’s towers and poles

– Fibres owned by Government; operated and maintained by BPC

– Leased to the telecoms companies

• Rwanda Africa

– Fiber on electric pylons - relatively cheap and fast to deploy; safer from vandalism due to proximity of high-voltage power cables

– Fiber deployment parallel with electrification of Mount Karisimbi summit

– Electrogaz installed 24 fibres, but use only 4


Service Quality

• Users’ Perspective

– Increased use of state-of-the-art ICT solutions

• savings allow extra towers, cells, rings – better access quality

• reliable backbone for nationwide service provision

• technical resilience, designed from the outset

• Commercial Service Provider’s Perspective

– Business stimulated by a network that creates:

• additional revenue for owner - leasing capacity to 3rd party

• increased margins due to reduced infrastructure cost

• value added service creation environment


Redundancy


Redundancy

• Engineering, meaning of redundancy:

“duplication of critical components to increase reliability of the

system, by backup or fail-safe alternative”

• Redundancy: alternative routes for access to backbone networks.

• Several networks on same route may not increase redundancy if all use the same bottlenecks: e.g. Suez canal, Malaccan Straits.


Country Redundancy

Bangladesh Land access to Bhutan, China (Tibet), India, Myanmar. Offshore access to

submarine cables

Cambodia Land access to Thailand, Vietnam, Lao PDR; Multiple cables TC and CFOCN

access to submarine cables

China Based on fibre rings; Satellite cover 18 beams Inmarsat; 11 cable landings; duopoly, not much overlap

India Large rings; extensive land and submarine access. Multiple operators and

shared facilities

Kyrgyz Republic Land access to Kazakhstan making a ring through Chu and Merke. Limited

internal network

Mongolia Very large fibre rings; “Triple play” boost fixed lines as alternative; Backbone

underground; State fibre company: contract to manage private mobile towers.

Myanmar Under-developed sector low levels of redundancy. Now three mobile

networks, fixed line network, backbone fibre.

Philippines 5 cable landings-many options; “withstand and recover”: NDRRMC and Office

of Civil Defence; DRR local councils role;

Sri Lanka Ring and spur line systems. 96 hours for 100% recovery; Batteries and

generators at Base T stations; Cell-on-wheels; 2 landings stations; 16 links

Redundancy Report – selected ESCAP members


Ring does not have to be in same country

Kazakhstan

Kyrgyz Republic


Mongolia – large rings – connectivity N & S

Russia Russia

China

Mongolia


Fibre Redundancy in Cambodia


Alternative Foreign Investment


Resilience Policy

• Policy focus: the extent of DRR

• Principal objective: save lives

• No building is 100% resilient

• Safe evacuation, a policy goal

• Restore service: companies can find cost-effective solutions

– 1998 Auckland failure: 24 hrs, telecom customers worked from Sydney

– In the power sector, company churn – companies facilitated

– single telephone call is all that is required to change provider


Cambodia Drought Map and Flood Map

• ICT used to identify sources of risk

• Cambodia has both drought and flood at different times of the year

• Pinpoints areas where it is wise to increase redundancy, waterproof facilities, fire precautions


Conclusions

• Shared Infrastructure reduces the cost of broadband

– roads and railways easements open to all, make use of what is there

– fees are additional sources of funds for road and rail enterprises

– if sharing with power companies, they already have networks

– savings can increase quality of services and increase redundancy

– networks must be able to withstand modest movement

– ease of repair and redundancy essential

• Important to keep the final user as the focus of policy

– redundancy allows rapid restoration of ICT services after major event

– governments’ role to promote interests of the final user

– market can regulate competitive service businesses

– oversight of hardware charges where few options are possible

– Government determine the policy – companies decide HOW

shared resilient infrastructure redundancy...telecommunications law mandates infrastructure sharing....

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