A Communitybased FTTH network

KrsNET
in Ostrobothnia, FINLAND

Ulf Grindgärds
Specialplanner The Regional Council of Ostrobothnia
Vice-chairman Finnish Regional Networks Assoc.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 About Ulf Grindgärds

• Ulf Grindgärds
– Special planner
– The Regional Council of Ostrobothnia
– P.O.Box 174,
FIN - 65101 VAASA
FINLAND
– Mobile: +358 44 3206566
– ulf.grindgards@obotnia.fi
• Has been working with FTTH-infrastructure matters in Ostrobothnia
for the last nine years. Seven years of these engaged by The
Regional Council of Ostrobothnia now Special planner with
responsibility to implement the Ostrobothnian Regional
Broadbandstrategy.
• One of the founders of the association Finnish Regional Networks

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 WELCOME TO OSTROBOTHNIA

• Situated on the West Coast of Finland

• A breathtakingly beautiful region
• The international, bilingual city of Vaasa as its centre.
• Consists of 17 municipalities

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 The Regional Council of Ostrobothnia

• Formed by the 17 municipalities in the region, the

Regional Council of Ostrobothnia is a joint municipal
authority referred to in the Finnish Local Government
Act (365/1999).
• http://www.obotnia.fi

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 The regional Broadbandstrategy of Ostrobothnia

• The Regional Council of Ostrobothnia adpoted a

broadbandstrategy in december 2005 saying that 2010 a
household would be given the possibility to connect the
home with a capacity of 100 Mbit/s - 1 Gbit/s in a
symmetric way.
• The network is also aimed to be an open network so that
whatever serviceprovider has access to the network on
equal terms to make the services available for the
consumer. The consumer again must have the possibility
to choose services by himself.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

FROM STRATEGY TO IMPLEMENTATION

the Regional Council of Ostrobothnia has a

common umberella-concept through which
the network is going to be constructed

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 CONCEPT WITH IMPLEMENTATION AT
MUNICIPALITY-LEVEL

• FTTH-projects is to be founded at municipality level

through out the region.
• The first step at municipalitylevel is to form a
workinggroup
• The municipality-group start with a mobilisation- och
planningproject (financed by the Regional Council)

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 The local mobilisation project
(6 months)
1. A networkplan and a calculation with the help of the villagers (local
circumstances)
2. Informationmeetings (What? Why? And How?) in every village to
get the people involved. (A calculated price for the connections is
available at the meetings).
3. After the informationphase pre-connection-agreements are made to
see if you reach the needed penetration and the willingnes of the
households to invest the money needed.
4. If you have enough pre-connection-agreements you proceed by
making a calculation based on pre-connections to check the price.
5. Binding agreements.
6. With the final agreements on hand the decision to start to build the
network is made.
7. To do this you found a communitybased company (cooperative) if it
hasn´t been founded at an earlier stage.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 ACTION

• Case KrsNET in Kristinestad.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 About Kristinestad

• 7.306 inhabitants (31.08.2008)

• 57 % swedish-speaking, 41,9 % finnish, 1,1 % others
• Founded 1649
• Area: 809 square metres/. 9 inhabitants/square metres.
• Coastline including islands: 370 km
• Economy: Agriculture an forestry 12 %, manufacturing
and industry 25 %, service 63 %.
• Level of unemployment: 4,4 % (May 2008)

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

FIBER FROM THE HOME – BROADBAND IN
COOPERATION - THE MUNICIPALITY AND
THE INHABITANTS

COOPERATIVE

www.krsnet.fi

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 BACKGROUND

• The Municipality founded an ICT-kommtté 2003 to make

plans for the next generation network.
• A consultancy-report was made by Arto Karila.
– Suggested the concept of partnership between the inhabitants
and the municipality

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 STUDIES OF OTHER MODELS

• 2005 the FFH- model in Kungälv, Sweden was studied.

• In december 2005 a common open BIG meeting was
arranged with people from all over the municipality.
• At this meeting it was decided to found a planning- and
mobilisationproject with the municipality as project-
owner.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 THE FFH-JOURNEY WAS STARTED
• The process was started at the beginning of
2006
– A state co-funded (local action group) planning-
and mobilisation project wos started.
– 7 local working groups was founded
– Networkplanning and calculation with assistance
by byNET Ltd and the local working groups.
– Information meetings in every village.
– Pre-connection phase
– 40% penetration needed to keep the
connection fee human
– Networkplan number 2 to check the price
– More informationmeetings for the inhabitants.
– The decision to start the construction of the net
was taken

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

The Coop KrsNET was founded 26th of November
2006

• The Coop KrsNET was founded 26.11.2006 by 27

founders. The businessidea is to build, own and operate
a fiber optical network connecting all the homes in
Kristinestad.
• The net will be operated as a multi-service open access
network. This quaranteed, as the network is owned by
the users.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi
The construction phase was started in June 2007

• The situation in December 2008

– 600 members with binding
agreements.
– Summer and autumn 2008 rolling
out the network
– 450 homes activated.
– The first Internet Service Provider in
place.
– The municipality has connected all
the schools and other buildings.
• Backbone
– ”village” connecting network 140 km
– about 15 active nodes

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

The network was realised through a huge partnership where as well the
inhabitants as the municipality were involved

The role of the municipality. The generator! Not networkowner.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 Facts about KrsNET

• The construction cost is covered by the connection fees

which is 1700-3000 euros/connected house
– The connection fee was paid in three instalments
– The household had the possibility to take a loan in local banks.
• To cover operational cost and costs for maintainance a
monthly fee about 15 euros is collected
• NOW at the starting point one Internet service provider:
– 2/2 Mbit/s 6 euros/månad
– 5/5 Mbit/s 12 euros/månad
– 15/15 Mbit/s 24 euros/månad
• During February 2009 the first IPTV-service provider will
start selling TV-channels and films.

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi
Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi
HAPPY END!

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 FTTH-projects in Ostrobothnia

KNT-NET

Korsholm-NET Pedersöre-NET
Nykarleby-NET
Tao-NET
Malax-NET
Korsnäs-NET

Närpes-NET

Krs-NET

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 Finnish Open Networks

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi

 Ulf Grindgärds

ulf.grindgards@obotnia.fi

Österbottens förbund • Pohjanmaan liitto • Regional Council of Ostrobothnia www.obotnia.fi