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Networking is expensive in small countries

Networking is expensive in small countries. Marko Bonač ARNES, Slovenia bonac@arnes.si. NREN budget par capita 2002. It is dependant on size of the country and not on its GNI per capita (as one would expect) ! NREN budget per capita in 2002 (Terena Compendium)

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Networking is expensive in small countries

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  1. Networking is expensive in small countries Marko Bonač ARNES, Slovenia bonac@arnes.si

  2. NREN budget par capita 2002 It is dependant on size of the country and not on its GNI per capita (as one would expect) ! NREN budget per capita in 2002 (Terena Compendium) 0,5 EUR/cap 1 EUR/cap More than 1 EUR/cap -------------------------------------------------------- ------------------------------------------------------------ --------------------------------------------------------------------------------- France Czech Rep. Ireland Germany Estonia Portugal Italy Litva Croatia Spain Latvia Slovenia Denmark The Netherlands Belgium Norway United Kingdom Finland Switzerland

  3. Running an NREN in small country is expensive In a small country it is more expensive (calculated per user) to provide the same level of service. • Relatively more international capacity is needed • Low capacity circuits are relatively more expensive • Circuits of the same capacity are often more expensive • The NREN needs the same effort to introduce a new service

  4. International capacity needed (2001) NREN total int. pop. capacity/ in country capacity mil.pop • Germany 1000 82 12 • France 850 59 14 • UK 800 60 13 • Slovenia 45 2 23 • Ireland 120 3.7 32 • Switzerland 300 7 43 • Luxembourg 20 0.4 50

  5. Average traffic received from GEANTJuly 2002 Average received traffic per capita in Austria, Slovenia, Croatia, Estonia, Greece, Hungary, Lithuania, Luxemburg, Switzerland was at least 6 times greater than in France, United Kingdom, Germany, Spain

  6. Price for international circuit is not a linear function of capacity

  7. Circuits of the same capacity are more expensive in small countries • Telecommunication market is often not yet liberalised • Telecommunication regulator has the same task • In many cases there is only one operator • There is less demand for high capacity circuits

  8. Even TERENA membership contribution is greater burden for small countries NREN from TERENA contribution country in EUR/1 mil pop Germany 873 UK 1.194 Hungary 1.756 Estonia 2.985 Slovenia 4.477 Ireland 4.840 Luxembourg 22.385

  9. What can be done ? • Enlarge user community(lower cost per user) • Foster a good relationship with Telecom(pay less for the infrastructure) • Foster competition in telecommunication sector(to pay less for the infrastructure) • Get more money from the government/from EC

  10. Other considerations • Most small countries are underdeveloped • In most small countries there is not enough competition in telecommunication sector • Most small countries are far away from the center of Europe But • The development in the last ten years has been faster • It is easier to change things in a small country

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