1. FUTURE OF COMPETITION POLICY International Institute of Communications TELECOMMUNICATIONS AND MEDIA FORUM Brussels, 29 April 2010
2. How we see competition… Beyond connectivity: global, convergent, customer-centric & innovative 01 Source: ATKearney. Internet Value Chain – March 2010
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4. Increasing pressures over margins Strong traffic increase vs revenue stabilisation Increasing investment need in network capacity Why? The model supporting this success story is now close to exhaustion with uneven consequences for each parties… 03 ARPU Network cost per user $ / Users / Month 0 10 20 30 40 2006 2008 2010 2012 2007 2009 2011 Source: Bell Labs Modeling and Network Planning Time Revenues Voice dominates Data dominates Traffic Decoupling
5. As current pricing models based mainly on flat rates paid by final customers incentivizes “uncontrolled” traffic growth with no efficiency incentives ADSL ADSL 2 ADSL 2+ VDSL Fiber Current model is not sustainable in the long term 03 How to continue ? Flat rates Traffic Growth Capacity problem
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11. No grand idea was ever born in a conference, but a lot of foolish ideas have died there ” F. Scott Fitzgerald Q&A
12. Many Thanks for your attention ! Jerónimo González E: [email_address] M: + 34 669856098
