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The Greek FO MANs

Public consultation on the concession contract for the FO MAN Administrator

Today, 31/1/2011 is the final day for sending any comments to the public consultation on a proposed concession contract from the Greek state, regarding the fiber optic (FO) MAN Administrator. The 25 year concession contract between the Special Secretariat for Digital Planning and the MAN Administrator(s) has the target to complete and expand the existing FO MAN infrastructure of 1300km (trenches) in 72 regional municipalities. The existing FO MANs have costed around 80mEuro to build and connect some 3.500 public interests points like municipal buildings, schools, hospitals, libraries, etc. In 15% of these points, active FO equipment is already installed and there are also around 300 wireless access points installed.

The Greek state, represented in the concession contract by the Ministry of Regional Development and Competitiveness, has the exclusive rights to use, extend and exploit the FO MANs, while the appointed Administrator will have the rights to commercially develop, operate, maintain and further expand the networks for a period of 25 years plus 5 years by unilateral extension. Any new infrastructure created during the concession will be property of the Greek state. The FO MANs are grouped in 3 equivalent geographical areas and the intention of the government is to appoint one Administrator per area, although it is not prohibited to participate in more than one areas.

The Administrator(s) will take over the networks immediately, following the signature of the concession contract and will have the obligation to operate and provide the infrastructure in a neutral manner towards his customers based on equality, transparency and specific SLA terms. The customers of the MAN Administrator(s) will be licensed telecommunication operators and the Greek state network “SYZEFXIS“, while the services offered will be cost oriented (providing a 5% profit after tax) and largest part of profits that may be created should be re-invested in the development of the networks.

During the open international biding process, that will follow this public consultation, any Administrator(s) candidates must state in their offers a Binding Minimum Capital Provision (BMCP), which can no be less than the 5% of the construction cost of MANs in the geographic area. Following the signature of the concession contract, the administrator must form a new private company with the capital of at least 25% of the BMCP.

  • Area A: 26.472.271,00 euro, BMCP>1.323.613,55 euro, Company Capital>330.903,39 euro
  • Area B: 27.442.067,00 euro, BMCP>1.372.103,35 euro, Company Capital>343.025,84 euro
  • Area C: 26.237.198,00 euro, BMCP>1.311.859,90euro, Company Capital>327.964,98 euro

The candidates must also commit to a minimum expansion of the networks for the first 5 years of the concession, which is expressed as km of new FO installed in type X1 (including X2) and X3 of construction. Type X1 (road) and X2 (pavement) trenches are 150mm wide x 400mm deep trenches containing at least 6 tubes, while X3 are 100mm wide x 150mm deep trenches containing at least 1 tube.  The minimum expansions expected by the Greek state are:

  • Area A: X1 expansion> 12,075km, X3 expansion>19,865km
  • Area B: X1 expansion> 12,377km, X3 expansion>20,236km
  • Area C: X1 expansion> 11,913km  , X3 expansion>19,981k

Further details on the concession agreement is provided in the public consultation Greek texts (Text A, Text B, English Summary).