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X-Connect Croatia

Ultra Fast Wireless Fixed Network


Overview Business Plan
„Broadband connection for rural
Croatia and its islands ”

May 2019
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Agenda

• Executive Summary and Business Concept 4


• About Broadband in Croatia 9
• Services 13
• UFN Technology and Regulatory 17
• Broadband for rural Croatia and islands 26
• Financial Overview 31

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Executive Summary & Business Concept

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About Broadband and Croatia

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Broadband contribution to GDP Growth

Comments

Individual areas have different definitions


what is broadband and there is a
widespread agreement that 25 Mbps
download and 4 Mbps upload is sufficient
to define a connection as broadband.
However, in our opinion this is insufficient
for the development of the individual
economies.
There is a clear and proven correlation
between broadband penetration and GDP
development of a country.
Source Gartner HS Global Insights , McKinsey 2011

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Download demand is increasing

Future Demand
( Digitalization)

On line Video
( requires speed)

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Penetration rates of European countries at September 2018
(FTTH/B Subscriptions / Households)

Includes countries of +200k Households in


which FTTH/B subscribers represent at
least 1% of total households

▪Eastern Europe and Nordic countries are


among the top of penetration ranks,
mainly due to a proactive state
intervention towards fibre expansion

▪Some major European countries are


lagging behind (except. Spain and
Portugal) due to a predominance of
copper-based technologies (VDSL, G.Fast)
and/or cable networks (DOCSIS 3.0 / 3.1)

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What is Broadband ?

Different standards
however with the
increase of video
demand renders speeds
below 100 Mbps as
insufficient.
Upload speeds are very
low

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Broadband connection affects quality
Type of connection shows that older
technology makes it difficult to
provide 100 Mb/sec

The FTTH has a large cost laying and


is inflexible

Maintenance costs and last mile cost


including drop in are high pushing
prices up

Millimeter wave
MMw can provide the quality at low
1 Gb+ X-connect cost

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EU is looking to become a gigabit society

• In 2010 the EU set three targets for


broadband: by 2013, to bring basic
broadband (up to 30 Megabits per
second, Mbps) to all Europeans;
• By 2020, to provide all Europeans with
fast broadband (over 30 Mbps); and
by 2020, to ensure take-up by 50 % or
more of European households to
ultra-fast broadband (over
100 Mbps).

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