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RuNe – The project in detail

Rune of the project presentation (Rural Networks). Site translation of European Commission

Introduction
The runes project was born with the aim to ensure an infrastructure of ultra-broadband for users who live and work in rural areas of the Autonomous Region of Friuli-Venezia Giulia, Republic of Slovenia and the Croatian counties Primorsko-Goranska and Istarska. With the cover of the 97% the white areas (areas currently not served satisfactorily infrastructure, and for which there is no commercial interest of other operators to build this infrastructure with private investment over the next three years), Rune will ensure local communities to achieve and far exceed the objectives of Agenda Digital 2020, giving the possibility of a new connection through the access network in a gigabit optical fiber and in addition to all. The project is designed to exclusively provide an open infrastructure service, through which different operators of services they can offer services to end users.
Rune is the first, and at the moment the only project of ultra wide-band cross-border infrastructure at the European level.
The funding for the construction mainly from EFSI mechanisms (European Fund for Strategic Investment), better known as "the Juncker plan". The project is not directly subject to the rules on state aid (EFSI are private funds of banks), but it must satisfy certain requirements (to be conformant but not compliant).

Technical description
Rune intends to build a network of fiber access (FTTH – fibre to the home) to all users of the white areas concerned. To do it, Rune want to use to the fullest extent possible the existing infrastructure, (ri)used for the purpose. In this sense, the use of the infrastructure according to the ERMES enforcement rules, but also of all the other possible infrastructure and rationally usable (such as poles and public lighting pipes, energy infrastructure and the like) It is of utmost importance.
The network will be managed openly, wholesale only, to guarantee the same conditions to all operators of services to be able to provide services to end users.

investment phase
It will be built an infrastructure of active access to fiber broadband services (FTTH) AE in hybrid architecture (active ethernet) e PON (passive optical network), with its interconnection network between the access nodes active (backhaul), in order to make possible that the greatest possible number of service operators (ISP-internet service provider) to reach the end users at a lower cost possible.
The infrastructure will be designed according to current regulations in each state, Also taking advantage of the new rules on the reduction of the construction costs of these networks that each EU member state must introduce in its legislation by the end of 2015.
The work and purchases of the main materials will be divided into technical and assigned units through private international competitions, handled with the necessary transparency. The partners will, the same commercial terms, Earlier in work allocation (it favors the execution of works by local companies).
The execution of the works will be supervised according to current laws.
The World Bank, who will follow the project as an external technical consultant, commissioned by the European Commission, It will act as a further guarantor of fairness in the execution of all processes.

Operation phase
Once finished, the infrastructure will be managed by Rune S.It is. as an infrastructure of open access and active (bit-stream type), ensuring all service operators the ability to access to end users on the same terms. For operators will be published an offer transparent and public (Type Vula) the conditions for the use of infrastructure services and procedures related to it.
La RuNe S.E. assign all the infrastructure maintenance and troubleshooting to local companies in the region, in order to ensure the lowest response time and repair of malfunctions.

institutional issues
The project will be implemented by a special project company (RuNe S.E.), established in the form of the European Company (Societas Europaea – S.E.) six partners (two from each country), all with extensive experience in the field of telecommunications networks, infrastructure and ICT services. In the social structure it is also provided for all public entities of the areas included in the project that want to participate, such as local communities, regional, municipal utilities, etc., each with a symbolic contribution.
The Board of Directors of the company, made up of three executive directors and nine councilors to oversee, It will decide according to the laws in force on all operational issues. The three executive directors, two will be appointed by the shareholders (CEO and Technical Director), while the finance director will be at least for the investment period appointed by financial institutions that will finance the project.
The nine directors will be appointed by:
– one per country from regional / national authorities;
– one per country by the local / municipal authorities;
– one for the country by the private partners.
A composition of the Council ensures that the operations necessary for the execution of the project, while ensuring to all parties involved to achieve transparency in decision-making and executive processes.
Funding will come from the issue by Rune S.It is. of project bonds (perpetual cumulative bonds with guaranteed return). The bonds subscribed by the European Investment Bank (WHEN) They will be supported by the guarantee of the European comission (according to the mechanism dell'EFSI).
After two years of infrastructure operation, financial institutions will carry out an audit of the results achieved (in terms of coverage / number of connected users). In positive case, the EIB restuirà assurance to the Commission, and it will sell bonds to other international financial institutions (provided pension funds and / or insurance funds). In the negative case, the EIB will convert the bonds into regular actions, thus making the previous owners minority shareholders, and will take the management of the company.
Anyhow, the infrastructure built will stay alive and serving the local area.

Investment
The expected values ​​for the investment are presented in the table (EUR values):

Investmento

operating cost 20 years

Slovenia

189.462.340

118.629.150

Italy

135.168.504

104.238.343

Croatia

69.771.246

55.740.886

Rune total

394.402.089

278.608.379

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