Fiber to the home (FTTH) networks will have long-term impacts on the structure of the telecommunications industry. As FTTH networks require large capital expenditures, this raises questions about how the costs of building and maintaining these networks will be balanced with innovation in services. There are also potential evolutions in how value and revenue are shared across the entities in the fiber and internet value chain, including between telecommunications companies, content providers, and users. The future structure and business models of the telecommunications industry will depend on factors such as revenue growth, industry consolidation, the degree of convergence between fixed and mobile networks, and regulatory approaches.

1. Session: What long term impact of FTTH on the telecom industry’s structure? DigiWorld Summit 2011 NextGen Networks 1: Latest questions about FTTH Yves GASSOT [email_address] 16 novembre 2011

3. Revenue for OTT services Key questions around Internet traffic Managed services Payment for traffic Payment for content/service Content provider Hosting ----------------------- CDN Telco N End-user Telco 1 ISP Telco … Device Open Internet Peering ~ 0€ Revenue sharing for managed services Transit or peering Internet subscription # 4: Managed services # 5: Unlimited traffic # 3: Peering # 2: Transit and CDN pricing # 1: Content economics CDN

4. Potential evolutions with value transfer options around telcos Telco Content & Service End-user Volume QoS Service & Content #1: Pay per use #2: Pay per quality #3: New interco #4: Performance-based #6: Bundles traffic/service & Smart boxes #5: Traffic wholesale Pricing based on

9. Thank you !