MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Provisionof electronic

communication infrastructure to

implemente-services in Latvia

Guntis Mačs

Deputy State Secretary

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Insight to the development of electronic communication networks in Latvia

The strategy adopted by the Latvian government for rapid development of infrastructure for high quality electronic communication networks

The progress made in the implementation of the strategy and

The targets to be set for the future

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Goals set by the European Union

To provide population with the possibility of receiving at least a speed

of 2 Mb to connect to the data transmission network at affordable

prices by 2010

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Internet users in Latvia, % of all population

Data: Latvian Internet Asssociation

2 3 3 3 4 69

13

22

36

46

54

2 3 3 3 4 69

13

22

36

46

54

0

10

20

30

40

50

60

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Persents

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Broadband in Latvia

In 2006 - 54% of population use internet

Internet using penetration in rural areas is six times lower than in Riga (capital city)

In 2006 - 6.8% of population use broadband connections (by EUROSTAT)

Broadband services are not available at 83% of the Latvian territory

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Institutions involved in the development of implementation models:

Ministry of Transport

Institute of Mathematics and Informatics of the University of Latvia

Ministry of Regional Development and Local Governments

Ministry of Finance

Latvian Information and Communications Technology Association

Latvian Internet Association

Telecommunications Association of Latvia

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Identified problematic issues:

Insufficient financing

Risk of possible incompliance with the EU conditions set to receive state aid

Solution: Co-financing up to 35% to set up a

broadband connection points across the country – to develop backhaul (carried out by

business entities)

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Broadband Development Strategy for 2006-2012

In 2005, the Cabinet of Ministers of Latvia approved the Broadband Development Strategy for 2006-2012

The main objectives :

to ensure all interested parties with access to the broadband network with a speed of 256/128 Kbps throughout the territory of Latvia at affordable prices

special attention should be given to make the broadband available to the population of rural territories

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Institutions involved in implementation of the strategy: Ministry of Transport

Institute of Mathematics and Informatics of the University of Latvia

Latvian Information and Communications Technology Association

Latvian Internet Association

Telecommunications Association of Latvia

Secretariat of Special Assignments Minister for Electronic Government Affairs

Ministry of Finance

Ministry of Regional Development and Local Governments

Latvian Association of Local and Regional Governments

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Implementation:

Main selection criteria for the relevant business entity:

Amount of requested public co - financing

Number of regions to be covered by the applicant

Tariffs offered for subscribing to broadband connections and fee for connection set up

Available public financing for implementation – 5.6 million euro:

State financing – 1.4 million euro, or 25% of public financing

ERDF financing – 4.2 million euro, or 75% of public financing

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Requirements to participate in tender:

Application has to cover at least one administrative region of Latvia

State co-financing not exceeding 35% from total project expenses

A connection point has to be set up at any location within the chosen region

Maintenance of the network for at least five years following the implementation of the project

Any other business entity shall have free access to the network at a price not exceeding the fees offered at the tender

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Implementation:

The open tender - announced on 23 October 2006

The open tender - completed on 5 January 2007

Agreement signed with Telekom Baltija on 9 March 2007

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Wiew of broadband availability in summer 2008

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Telekom Baltija project foresees:

To provide connection to broadband (to develop backhaul) throughout all territory of Latvia

Total expenses of the project is 21.5 million Euro

The project shall be finished by July 2008

Zero connection fee

Subscription fees: 28.5 Euro per month for connection with a guaranteed

speed of 256/128 Kbps

71 Euro per month for connection with a guaranteed speed of 2 Mbps

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Next step:

To provide all interested parties with access to broadband network with a speed of 2 Mb

throughout all territory of Latvia

at affordable prices at the “last mile” level

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LATVIA

Thank you for the attention!

www.sam.gov.lv

http://www.sam.gov.lv/satmin/content/?cat=265