FTTH Global panorama mid-2011 – Total subscribers 5.6 M 9.5 M 4.6 M 0.3 M 46 M … and FTTH continues to grow
FTTH in Europe – Overall Figures mid-2011 • EU35: 4.6 million FTTH/B subscribers • EU27: 4.1 million FTTH/B subscribers • CIS (Russia, Ukraine, Belarus, Kazakhstan): 5.6 million FTTH/B subscribers • EU35: 25.1 million FTTH/B Homes Passed • EU27: 23.4 million FTTH/B HP • CIS (Russia, Ukraine, Belarus, Kazakhstan): 14.7 million FTTH/B HP Average Take Rate EU35: 18.3% vs 19.4% in June 2010 Growth rates 1H2011EU35 Expanding FTTH/B+14% FTTH/B subscribers (vs 24% 1H2010) coverage is still a+26% FTTH/B Homes Passed (vs +12.5% 1H2010) priority for players Source: IDATE for FTTH Council Europe (1) Our figures have already been processed to avoid overestimating homes passed when one home is passed by several operators in some countries. Figures take this into account at June 2011 in particular for Slovenia, Russia and France.
European Ranking• At June 2011 20 countries in the European Ranking Ukraine and Hungary new entrant • Three Eastern European countries showed the highest progression in the ranking from 2% to 4 % : Lithuania, Bulgaria and Russia Major Western Economies such as Italy and France sll at the bo]om of the Ranking Others like Germany, Spain and the UK are absent UK June 2011 = 4500 Subscribers and 567,300 HP out of 25M Households
FTTH/B leading countries But number of subscribers less relevant than Take Rates (1) Europe at mid-2011: 18.3%From the highest… In Scandinavian countries : 62% in Norway, 39% in Sweden In Hungary (37%), Slovakia (32%) or Netherlands (32%) In the Baltics : 27% in Lithuania …to the lowest In France (10%), Switzerland (5%), UK (<1%) At June 2011: South Korea at 59%, Japan at 45% (1) Number of subscribers in total Homes Passed Source: IDATE for FTTH Council Europe
FTTH Market Forecasts Photo by Nicolo Baravalle
Europe in Context: the Race to Fibre Maturity (10%) After Country 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 Japan Korea China Taiwan Australia India USA Canada Brazil Russia France Germany Italy UK Spain Sweden Netherlands Portugal Switzerland Denmark EUROPEAN UNION 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Heavy Reading for FTTH Council Europe, February 2011
Europe by 2015l Over 19m households connected to FTTH/B at end-2015 in EU countries covered by this forecast = about 10% of all homes in the regionl Seven of the 21 nations still under 10% penetration at end-2015: Greece, UK, Poland, Belgium, Spain, Germany, Italy and Czech Repl Unlike most other regions, incumbents are not currently the major providers of FTTH, and this will remain the casel The most striking feature of the market through the next five years will be its fragmentation across every dimensionl The UK will have the best superfast broadband network in Europe ???
Summaryl Over 19m households connected to FTTH/B at end-2015 in EU countries covered by this forecast = about 10% of all homes in the regionl Seven of the 21 nations still under 10% penetration at end-2015: Greece, UK, Poland, Belgium, Spain, Germany, Italy and Czech Repl Unlike most other regions, incumbents are not currently the major providers of FTTH, and this will remain the casel The most striking feature of the market through the next five years will be its fragmentation across every dimensionl Will the UK will have the best superfast broadband network in Europe? European Commission Digital Agenda: 50% of European households connected to 100 Mbps by 2020
The Challengel Looking to the future – FTTH is the end gamel To meet the targets set by the Commission 50% subscribers with >100Mbps service means maybe 80% capable Even then there is no upload requirement – essential for the Cloudl Realistic National Plansl Linked up government departmentsl How to move incumbents towards FTTH Cu pricing + Incentives for FTTH and encourage close old infrastructurel Connecting Europe Fund - €9.2bn €7bn for infrastructure leverage to ~€100bn with financial instrumentsl Improve the Take Rate – show there is a business case Good old fashioned MARKETING
Photo courtesy of ER-Telecom FTTH Case studies
FTTH Case studies ATB-‐NeZ Ostrobothnia Albox MälarEnergi ER-‐Telecom Stadsnät LaZelecom Waoo! TEO Amsterdam Citynet Pays Chartrain ARGE Glasfaser Photo courtesy of ER-Telecom Waldviertel Pau Pyrénées Fastweb Andorra Telecom Makedonski Telekom Portugal Telecom
ANDORRA Andorra Telecom - Story Universal FTTH services for all citizensSuccess Story • Andorra is Europe’s FTTH leader with a penetration of 40% of its inhabited households (vs. holiday homes), and 26% overall • From traditional telecom operator to service-oriented provider • Challenges: no economies of scale in small, mountainous country
ANDORRA Andorra Telecom - Key factsDeployment (end-2010) • Homes passed: 52,000 100% of households • Subscribers: 14,700 • Deployment 2008-2010 • 7 years to ROIEnd-user services • Andorra Telecom is a telecom operator and TV broadcaster, fully integrated operator (builds, operates, provides services) • Packages: Double and Triple play, multi-platform services (calls and yellow pages on TV, Internet TV)