After Germany, the UK and Italy: mobile consolidation continues


Didier Pouillot
Director of Telecom Economics Business Unit,




The announcement of the merger between Wind and Tre in Italy and the resulting shift from 4 down to 3 mobile operators for the country, confirms the telecom consolidation trend in Europe.

It takes two forms:

On one hand, with the multiplication of fixed-mobile consolidation operations, like the recent acquisition of mobile operator Base in Belgium by the cable operator Telenet. Other examples include the Orange-Jazztel operations in Spain, BT-EE in the UK, Numericable-SFR in France, and Vodafone-Ono, also in Spain.

On the other hand, we are seeing a concentration in the mobile sector, from 4 down to 3 operators, including the top 5 countries of the European Union (see map). Germany has already switched, with the merger between E-Plus and O2, the respective subsidiaries of KPN and Telefónica in 2014 after a long investigation by the European antitrust authorities. In the UK, the planned merger between Three, the local subsidiary of the Hong Kong group Hutchison Whampoa (also parent company of Tre in Italy) and O2, will likewise reduce the number of operators in the mobile industry from 4 to 3. In Spain, the sale of yoigo, proposed two years ago by TeliaSonera, was abandoned due to the lack of a buyer under terms that the Swedish group deemed reasonable but the Spanish market is de facto concentrated within three operators, the fourth and last arrival having just over 6% of the market (in number of customers), and having further declined since late 2014. But let’s recall that in France, conversely, Free Mobile has managed to win about 15% of customers (but some 8% of revenues) of the French market in three years. In this concerted process, the French market seems to be the only one continuing to swim against the current!

Beyond the five major European markets, a significant number of other member states of the European Union also have around 3 mobile operators, and only two in the case of Cyprus.

In total, of the 23 other countries, just half (12 in total) still have 4 or more operators. But for some (Denmark, Finland, Luxembourg, Sweden), the fourth operator has remained embryonic. Note also that while four countries still benefited from the launch of 4G to open the market for a new entrant (Bulgaria, the Netherlands, Romania and Slovakia), uncertainties remain on the sustainability of new licenses. Romania is also the only member state to host six operators. And finally, in Belgium, the allocation of a fourth 3G license to the Telenet-Voo consortium in 2011 was not finally acted upon: both protagonists relinquished their licenses in 2014! Finally, we should complete this inventory by highlighting the diversity of situations relating to MVNOs, in number and market share.

Nevertheless, with more than 100 licenses issued, the European market remains highly fragmented at Community level!

Number of mobile network operators (MNO) in the Member States of the European Union


More informations about IDATE's expertise and events :

www.idate.org      www.digiworldsummit.com      www.digiworldweek.com

Filed under: FTTx, Mobile, Telecom No Comments

Digital First: ICT players vs. the new disrupters


The place to be in Europe, to understand upcoming disruptions and their impact on telecom, IT, Internet and media markets

From 17 to 19 November 2015, the 37th annual DigiWorld Summit will bring together 150 top-tier speakers to Montpellier to share their views with the more than 1,200 participants from over 30 countries. French Tech will also be in the spotlight during the 2nd annual DigiWorld Week and at the inaugural DigiWorld Awards.

Under the banner of “Digital First” IDATE will host debates on the core trends shaping telecom, IT, Internet and media markets, with the knowledge that digital technology is entering a new stage in its ubiquity, becoming the vehicle of a major overhaul in many sectors: energy, insurance, finance, health, automotive, travel and tourism… “But,” says IDATE CEO, Yves Gassot, “this digital verticalisation also represents a new challenge for IT, telecoms, Internet and media industry stakeholders. They may see new growth opportunities, but also challenges as innovation cycles are accelerating, as they consider the shifting outlines of their business and contend with new digital intermediaries.”

This new stage in the digital transformation is being spurred by ubiquitous wireline and wireless connectivity, the economies of scale of cloud computing, and the power of real time data processing algorithms. But it is being amplified by the rise of connected objects, and the promises of 3D printing, of artificial intelligence and the collaborative economy. A profound transformation of the economy that is already materialising in changes to production and distribution infrastructures, in the accelerated shift from product to service and the profusion of channels for interaction with end users.

• What do vertical companies (media groups and TV networks, insurance, automotive, travel, retail, etc.) want from digital industry players (telcos, OTT, IT)?

• How should digital industry players position themselves with respect to the digital transformation in vertical markets?

• How can the Web’s top destination platforms cohabitate with the vertical markets’ new digital champions?

• This year’s Guest Country: China. Can China combine the power of its recently acquired positions in Internet and telecom markets with its manufacturing ambitions?

2015 DigiWorld Summit Programme


Plenary sessions

Analysis and debates between veteran industry players and disruptive start-ups, with insights from IDATE’s finest economists and analysts:

Digital channels
A new chapter in the platform wars?

Digital Infrastructure
From ultra smart networks to predictive analytics?

Digital Product
From goods to services

Digital Regulation
OTT rules?

Digital Europe, Digital World
Closing session

Specialty forums

In-depth seminars with the industry’s top expertsConnected Things Forum

Smart City Forum

Future Networks

TV & Video Distribution Forum

Future Digital Economy Forum

Game Summit

DigiWorld Week (14 – 22 November 2015): IDATE expands on the two days of the DigiWorld Summit, and plays host to an exciting event-filled week. Delving deeper into the issues and shaking up ideas: symposiums, workshops, hackathons, exhibitions, festivals, master classes, …

DigiWorld Awards: in partnership with Business France and French Tech, IDATE will be hosting the first annual DigiWorld Awards, recognising French digital start-ups (Equipment and devices, Networks and telecoms, Internet services and application, M2M and IoT…), created abroad. Awards will be in four categories: Africa and the Middle East – The Americas – Asia – Europe

The DigiWorld Summit, is organised under the patronage of the French Ministry of the Economy, Industry and Digital Affairs, the Région Languedoc Roussillon and Montpellier Métropole, with the support of DigiWorld Institute member companies.

More informations about IDATE's expertise and events :

www.idate.org      www.digiworldsummit.com      www.digiworldweek.com


In 2015, the key words of the Mobile World Congress were 5G, IoT, virtualization and LTE-U : PART 2

image accroche article MWC part 2

IoT : The Internet of Things

Connected objects were everywhere and IoT is now becoming the Internet of everything.

Connected cars

Connected cars attracted a lot of attention with connected vehicles on most of equipment manufacturers’ and MNOs’ booths.
Renault’s CEO made a keynote where he presented the timetable for assisted driving. According to Mr. Carlos Ghosn, despite their numerous initiatives and some acquisition rumours, Internet giants are not rivals to car manufacturers but allies, as they consider electric cars and they help car makers to promote electric cars.
Ford had even its own booth presenting the electric vehicles (both passenger and entreprise cars) with dedicated solutions. In the meantime, Vodafone presented a Porsche Panamera model equipped with its new Telematics solution since the Cobra acquisition.

Smart home

Smart is also getting traction in the IoT space. In the “innovation city” hall (space dedicated to the connected objects), through the connectedhouseAT&T offering (Digital life) where the home could control through the smartphone and even through the connected car (equipped with an AT&T SIM card). When approaching the home, the car can trigger the opening of gate by itself for instance (pre-programmed distance).


Several watches and smart objects were also present on the different booths. Only AT&T provides cellular connected wearable on its booth, including the TIMEX and Samsung Gear S.

Alternative technologies

While 5G is already in the tracks, very low throughput network technologies are also under the spotlights. After the recent release of its 100 MEUR fundraising campaign among telecom operators, Sigfox was also on everyone’s lips at the MWC. Among the main new shareholders, Telefonica confirmed its strategic investment and its willingness to integrate the technology into its portfolio to address additional verticals and applications.


The GMA (Global M2M Association) also announced a strategic collaboration with Gemalto and Ericsson to provide a Multi-Domestic Service based on a single SIM (using the eUICC technology) helping global enterprises (chiefly from the automotive and consumer electronics segments) capitalize on the growth of connected devices.

Growing market but still key challenges though

During his keynote, if AT&T Wireless CEO predicted that the smart phone will be the remote control of everything in the next few years, he also pointed out the key challenges to address in order to make the IoT market grow significantly:
•    Security
•    Privacy concerns
•    Effortless (ease of use)


privacylogoData about devices and their users is generated in real-time, often by default and without the user being aware or having choice (especially for free apps). There is a need for a different approach to giving users transparency, choice and control over their data and privacy.

Generally user has a single choice : accept or not using the service, there should be gradual approach (like sharing some id attributes but not all of them).
Privacy could be a competitive stick for service providers, as users are becoming more aware of privacy.

Facebook in emerging countries

fbFacebook has launched Facebook zero in partnership with mobile operators (Millicom, Telenor, Airtel): data use is free for a limited period, and after that operators can charge data.

•    Airtel: “Operators and Facebook are like the beauty and the beast, but the beast (facebook) is becoming more human nowadays”.  Airtel was reluctant to introduce Facebook because of VoIP threat. Is looking at it like the “boiling milk”.
•    Millicom, Telenor: have seen ARPU rise thanks to facebook launching, very promising for them.
•    Wikipedia has the same approach of “Wikipedia zero”, dealing with operator to provide data access for free.

Financial inclusion

Banks, such as Master Card, provide a global and interoperable solutions. Those systems needs public-private partnerships. Hong Leong Islamic Bank Berhad has launched a solution in Malaysia.

More informations about IDATE's expertise and events :

www.idate.org      www.digiworldsummit.com      www.digiworldweek.com


Ultra-fast broadband 14.6 million FTTH/B subscribers in the EU at end 2014

Valérie CHAILLOU Head of Research, Telecoms Business Unit, IDATE

Accelerated growth in FTTH/B coverage from incumbents and enhancement in competition from new entrants, even in mature markets


In 2014, the dynamism of European markets (EU-35) was impressive: the number of subscribers reported the highest growth since end 2010 (nearly 55% increase). In terms of coverage, the increase reached 43%. This dynamism is led by countries such as Spain, where players have clearly played an important role and finally overpassed their initial objectives. There were nearly 14.6 million FTTH/B subscribers and more than 59 million homes passed in the EU-35 at end 2014.

In Spain, the incumbent Telefonica has decided to accelerate its rollouts aiming at covering 10 million households at end year, compared to less than 4 million at end 2013. This impressive growth and associated commercial strategy had a concrete impact on the Spanish market where, during the year, there were nearly 800,000 new FTTH subscribers.

Another noteworthy country is Romania where the leading players have decided to change their strategy and finally deploy FTTH/B when they were firstly focused on FTTx/LAN architecture in previous years. Therefore, the number of subscribers has considerably increased taking into account a total churn from end users. Those countries are followed by France, Turkey and the Netherlands (where, respectively, 25%, 24% and 39% of FTTH/B subscribers are new 2014 subscribers).

Elsewhere, Sweden still devotes to be highlighted: the latest trend in the country is to focus more and more on the single-dwelling units market which was not the first target of players involved in FTTH/B. The demand is steadily increasing since 2013 and, even if more complex and costly to deploy, FTTH to single-dwelling units is becoming a commodity. This is even truer for local fibre network players, involved in local scale rollouts, which have devoted half of their investments in targeting single-dwelling units in 2014. The Swedish incumbent was also very active in 2014, with more than 300,000 new Homes Passed yoy and an increase of around 31% in terms of FTTH/B Broadband subscribers. Then, the competitive landscape is also moving thanks to the involvement of smaller players that have strong ambition and get involved by acquiring local fibre networks previously owned by municipalities. Such trend should help Sweden keep a leading position on the European FTTH/B market.
On other markets, FTTH/B subscriptions also increased significantly. A part from Spain, the most performing country in 2014, we can mention the Netherlands where the number of FTTH/B subscribers has increased by 65%. France, Portugal, Turkey and Switzerland have also shown steady growth, in line with the trend we had already noted in 2013, with between 32 and 79% growth rate in the subscribers basis.

In terms of players involved in FTTH/B projects, alternative carriers are still leading the way, representing a 45% of the total homes passed in EU35 at end 2014 (67% considering EU39, which shows the important role of those players in Russia and Ukraine!). Among them, we can note this year the interesting role of recently entered players in countries considered as mature such as in Sweden and the Netherlands. Most of those players are backed with investment funds that help them strengthen their FTTH/B strategies.

The number of local authorities launching FTTH/B rollout projects on their territory has decreased a little bit in 2014 but they still represent only 9% of homes passed in EU35. Few new projects have been concretely launched by local authorities noted during 2014. There are some interesting rollouts in France, still in the context of the national program for superfast broadband, but most of them are still in the very beginning of the process. They represent some 600,000 homes passed end 2014.
Then, of course, incumbents are important players in all European countries. They represent 46% of HP in EU35 at end 2014, +3% compared to 2013. Several incumbents have considerably accelerated their rollouts in 2014. As in 2013, the most dynamic is Telefonica in Spain, but with a much more impressive growth: from 1.7 new Homes Passed in 2013, Telefonica reached more than 6 million new Homes Passed in 2014. Then come Orange in France (+897,000 HP), TeliaSonera in Sweden (+416,000 HP), KPN/Reggefiber in the Netherlands (+312,000 HP) and Turk Telekom in Turkey (+300,000 HP). It is also very interested to note the quite recent involvement of Bezeq in Israel, which decided to upgrade its infrastructure to FTTB: more than 1 million homes are now passed with FTTB but no services are available yet on the network. The operator is still focused on providing VDSL2 based services to end users for the moment, but it is betting on the need for higher speed rates in the near future and it is preparing itself to be able to provide required solutions very rapidly.

Number of FTTH/B subscribers per country in Europe (countries with more than 200 K subscribers)


Source: IDATE for FTTH Council Europe


Number of FTTH/B homes passed per country in Europe (countries with more than a million homes passed)


Source: IDATE for FTTH Council Europe

When enlarging the analysis to EU39, Russia and Ukraine are still very specific markets. Their respective demographic characteristics are so different from other countries that the comparison is not always very relevant. However, both markets are quite dynamic, with respectively +50 and +15% in terms of subscribers basis.
Regarding the technology deployed, Ethernet is still players’ first choice across the EU-39, and represented 66% of all FTTH/B rollouts at end 2014.
As concerns network architecture, most new deployments concerned FTTH which now represent 41% of homes passed at end 2014 (vs 34% one year ago). However, FTTB is still the favourite configuration as it allows them to avoid the issues that come with installing fibre on private property, and especially MDUs – i.e. having to negotiate with each property owner.

1 The term EU-35 refers to the EU-28 countries –Cyprus + Andorra, Iceland, Israel, Macedonia, Norway, Serbia, Switzerland and Turkey.
The EU-39 refers to the EU-35 + the four CIS Countries: Belarus, Kazakhstan, Ukraine and Russia.

>> Our study about FTTH/B are interresting you ? Go on our store.


Le Digiworld Summit 2014 in drawings

ouverture DWS14

The 2014 digiworld summit "drawn from life" by Aurélie Bordenave, alias Léely. Discover all the strong moments. (texts are in french or in english)





Global introduction












Plenary: Business models, Rethinking the telcos business models in the 5G era





Keynote : Smart Glasses




Business models: Rethinking the telcos business models in the 5G era











Disruptive innovations: one step towards 5G



Smart City & Mobile living











Seminar "TV everywhere"











Seminar : "Business models: M2M & Internet of Things - Smarter objects, smarter processes"






Business models: Narrowing the gap between explosive usage and limited ad revenues



















Europe on the rebound ?



TV & facing Mobility











>> Retrouvez tous les dessins d'Aurélie Bordenave durant le Digiworld Summit 2014 sur Flickr.

>> Découvrez le travail d'Aurélie Bordenave alias Léely sur son site.



Digiworld Summit 2014 : the speakers’interviews – in french

ouverture DWS14

Le digiworld summit 2014 a réuni autour des questions de la mobilité près de 1 200 participants et 140 speakers du monde numérique. Les vidéos des moments forts de ces deux journées.



- L'interview de Laurent Solly, DG de Facebook France

- L'interview d'Eric Scherer, en charge de la prospective à France Télévisions"Social TV, l'internaute en ligne de lire "

- L'interview de Julien Villedieu, président du Syndicat national des jeux vidéos : "Le jeu vidéo en mobilité"

- L'interview de Carlos Moreno, "La ville nous parle"

- L'interview de Kévin Cloarec "Comment les objets connectés révolutionnent-ils notre quotidien"

Les vidéos sont signées Vincent Touati fondateur du site Convergence Numérique.
Retrouvez ici la playlist des vidéos de convergence Numérique pour le Digiword Summit 2014.


FTTx Monetization : The UFB market is forecast to reach 181 billion EUR in 2018


Valérie CHAILLOU Head of Research, Telecoms Business Unit, IDATE

IDATE has released its report to provide UFB market estimates for 2013 and up to 2018 and addresses the following key questions:


• What are the levels of current UFB ARPUs and how could there evolve in the 5 coming years?
• How to justify possible differences from one country to another?
• What are some of the most likely development scenarios for the ultra-fast broadband market?
• What are the main criteria to take into consideration?

Valérie Chaillou, the Project manager for the report remarks that “the tremendous cost of new gen access networks makes monetizing them a crucial issue. Ultrafast-boradband (UFB) access providers' supply-side strategies are aimed at ensuring enough customers who will upgrade to a UFB service in order to generate substantial income.

The UFB market stood at 120 billion EUR in 2014, and is forecast to grow by 76% over the next five years to reach 181 billion EUR in 2018. In 2013, the global UFB market stood at an estimated 103 billion EUR, and is forecast to exceed 181 billion EUR in 2018. This includes all ultra-fast broadband systems, i.e. FTTH/B, FTTN + VDSL and FTTLA + DOCSIS 3.0. In terms of customer numbers in the different regions, FTTH/B alone accounted for 41% of the market in 2013, or 42.2 billion EUR.

Based on the current status of each of the markets being examined in this report – i.e. the United States, Japan, Germany, Spain, France, the UK and Switzerland – and how the players’ positioning is likely to shift with respect to the two scenarios listed above, IDATE has established an estimate for ultra-fast broadband ARPU at the end of 2013 and at the end of 2018.








We have distinguished two main categories of ultra-fast broadband plan: first-time plans and upgrade plans. An ISP may attach one or several objectives to its product line strategy. These can include increasing ARPU, limiting customer loss (churn), maintaining its competitive edge, reacting to increased competition in the broadband market, etc.

Sketching out two extreme scenarios allows us to assess the development trends for UFB ARPU, based in particular on how operators are positioning themselves with respect to increasingly powerful content providers who know it is entirely in their interest for ultra-fast networks to become widely available. So ISPs are either a) refocusing their energies on their network business and offering value-added services (VAS) tied to system management (data storage, security, authentication, etc.) – under a scenario we call "FTTx as smart pipe" – or b) becoming involved in the direct supply of services and applications such as TV and video to end users, with an approach built around "tiering and premium services".

If you want to buy our report go on our store.

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Digiworld Summit 2014 : Mobility reloaded, we ain’t seen nothing yet!


Yves Gassot
Directeur Général, IDATE

‘Mobility reloaded” will be the central theme of the 36th annual DigiWorld Summit.

Following through on ‘‘Game Changers’’ (2012) and ‘‘Digital Gold Mines’’ (2013), this year’s theme will allow us to further our examination of current and future upheavals in the digital economy by exploring the issues from a specific angle: mobility and its impact on user behaviour and on the value chain for telecoms, TV, advertising, the Internet, gaming, smart cities, etc.

  • What innovations can we expect from mobile Internet disruption?
  • Are fixed and mobile superfast access interchangeable?
  • What new players and business models will emerge from the Internet of Things and mobile advertising?
  • Will mobile devices turn TV into a one-to-one business?
  • How can Europe get back in the game?

IDATE Chairman François Barrault points out that, ‘If the cloud, big data and the Internet of things are clearly the major disruptions looming on the horizon, the momentum today lies in the mantra: mobility first!

IDATE CEO, Yves Gassot, details the key points of this year’s programme: ‘What began with the swift commercial success of 4G is segueing into the spectacular technological leaps expected from LTE-advanced and, beyond that, the prospect of 5G, the widespread adoption of software-driven networking (SDN)… But questions also linger over the accelerated pace of the migration from the fixed to the mobile Internet, spurred by the massive popularity of smartphones and tablets, coupled with the surge of emerging economies. It goes without saying that a great many stakeholders are being affected by these massive changes in the landscape, which we have chosen to explore from three angles: How revenue is progressing for mobile operators and other players, from M2M to the Internet of things and beyond; How the massively mobile Internet will affect the advertising ecosystem; and how TV industry players are positioning themselves now that video accounts for an increasingly large share of mobile traffic’.

The 36th annual DigiWorld Summit will run from 18 to 20 November in Montpellier, France, and play host to a panel of international industry luminaries who will share their views with more than 1,300 participants from 30 countries. IDATE analysts will lend their expertise to the sessions that will be moderated by Digiworld Institute members.



DigiWorld Week: the DigiWorld Summit broadens its horizons

This year’s DigiWorld Summit will kick off DigiWorld Week: a new initiative from IDATE and its key partners to explore the many facets of the digital society’s core economic issues. A series of exciting events will be taking place from 16 to 21 November on either side of the core two-day Summit:

  • The Connected Things Forum
  • The Game Summit
  • MIG (Montpellier In Game)
  • Industry Oracles
  • Workshops
  • Economic Club on m-payment

> Find the latest programme updates at www.digiworldweek.com


More than 140 speakers on hand

This year, we are delighted to welcome speakers from the four corners of the globe, come to share their views on the future of mobility:

    • Mikael BÄCK, Vice President Global Strategy & Portfolio Management of Ericsson will share some of the chief findings of the “Mobility report”.
    • Jean-Michel FOURNIER, CEO & Co-Founder of BitGym, a San Francisco-based start-up and winner of the prestigious Auggie Award at AWE 2014, will talk about the “quantified self” phenomenon.
    • Kayvan MIRZA, CEO & Co-Founder of Optinvent will unveil his approach to new generation smart glasses.
    • Patrick PELATA, EVP & Chief Automotive Officer of Salesforce.com will speak with Thierry VIADIEU, New Mobility Program Director from Renault, about the future of connected cars.
    • Christophe WILLEM, Senior VP of Strategy & Marketing at Thales Alenia Space, will tell us if drones, balloons and mini-satellites offer viable solutions for connecting huge swaths of the population to the Internet.
    • Michel COMBES, CEO of Alcatel-Lucent will close the “Road to 5G” session, whose speakers include Selina LO, President & CEO of Ruckus Wireless, and Atsushi TAKESHITA, President & CEO of DOCOMO Communication Laboratories Europe.
    • Pierre LOUETTE, Deputy CEO of Orange and Carlos LOPEZ-BLANCO, Global Head Public & Corporate Affairs for Telefonica, will discuss how telco business models will evolve in Europe, against the backdrop of market consolidation.
    • Laurent SOLLY, Facebook’s Managing Director France, and Benny ARBEL, Founder & CEO of MyThings, a rising star in retargeting, will discuss the challenges that advertising faces as it makes the transition to mobile.
    • Luc JULIA, VP & Innovation Fellow of Samsung and Co-authored Apple Siri's core patents, Erick TINICO, Director of Mobility at AT&T, one of the world’s most advanced telcos and Axel HANSMANN, Gemalto’s VP of M2M Strategy & Marketing, will share their analysis of new business models for M2M and the IoT.
    • Fu SHENG, CEO of Cheetah Mobile, a growing mobile Internet powerhouse in China, with 340 million users.
    • Abigail KHANNA, Head of Digital and Future Media Business Development at the BBC, Steve McCAFFERY, GM & SVP of sales for Europe Arris, Eric SCHERER, Director of Future Media, France Télévisions, and Valery GERFAUD, General Manager, M6 Web, will explore what the future holds for television, now that mobile devices are becoming users’ screen of choice.
    • Guillaume de FONDAUMIERE, Co-CEO of Quantic Dream, Susan O’CONNOR, a writer whose script credits include the games BioShock 1 & 2, Far Cry 2, Tomb Raider and Star Wars 1313, along with Charles CECIL, co-founder of Revolution Software, creator of Broken Sword, are among our video game Oracles.
    • Meng LI, Director of China Telecom’s Mobile Business Department Europe, will talk to us about the development outlook for mobile in its various forms in the world’s biggest market.
    • Jean-Ludovic SILICANI will talk about his time as Chairman of France’s telecoms and postal regulator, ARCEP, and share his insights into key issues going forward.
    • Vincent LE STRADIC, Managing Director of Lazard, will provide a financier’s perspective on the health of Europe’s digital economy. And…
  • Axelle LEMAIRE, French Ministry of State for Digital Affairs will deliver the Summit’s closing remarks.

See the complet list of speakers.


Fixed and mobile ultra-fast network rankings

CHAILLOU_Valérie Valérie CHAILLOU Head of Research, Telecoms Business Unit, IDATE

IDATE reveals global and European rankings

To mark the start of the 8th annual Assises du Très Haut Débit symposium, IDATE is releasing its ranking of countries that lead the way in ultra-fast fixed and mobile broadband subscriber numbers, in Europe and worldwide. An analysis and data culled directly from IDATE’s freshly updated FTTx and LTE global market watch, which examines hundreds of countries and operators.

Growing disparities in fixed ultra-fast broadband

At the end of 2013, ultra-fast broadband (UFB) access – i.e. with a throughput equal to or above 30 Mbps – represented 29% of all broadband connections worldwide. This marks real progress as the percentage stood at 22% just one year ago. FTTH/B is still the mostly widely deployed technology, accounting for 60% of UFB subscribers around the globe, followed by cablecos’ FTTx/D3.0 systems, which account for 29% of users, and VDSL for 11%. In terms of subscriber numbers, all UFB architectures combined, the United States is by far the global leader with 62.5 million subscribers at the end of 2013, compared to 42.4 million for China and 27 million for Japan. France is in eighth place with more than 2 million subscribers. Of course this ranking changes depending on the indicators that are taken into consideration, such UFB subscribers’ share of a country’s total broadband customer base. Here South Korea tops the ranks, ahead of the United States, Japan and China, with 66% – versus 64% for Japan, 60% for the United States and 22% for China. As to the technologies deployed, the US is the undisputed VDSL market leader with some 11 million subscribers, well ahead of the UK and its 2.1 million subscribers. The United States is also the world’s biggest FTTx/D3.0 market, with 42 million subscribers, again ahead of the UK which is home to 3.1 million subscribers, followed by Spain where competition between FTTH/B and FTTx/D3.0 is fierce.

Accelerate 4G rollouts

Meanwhile, LTE also continues to make tremendous strides. IDATE counts close to 212 million LTE subscribers around the world at the end of 2013, of which 190 million are located in just 10 countries. The revenue generated by these subscriptions tripled in 2013, to reach €68 billion or 6% of global mobile telephony revenue. The United States is the biggest LTE market with more than 100 million subscribers, or three times more than the number two market, Japan. France is in sixth place in terms of user numbers. There are several reasons for these huge disparities: telcos in the United States have far outspent their European counterparts on LTE rollouts (virtually double the Capex per capita), while in Japan and South Korea LTE is part of a strong ongoing industrial policy. Here, it is worth remembering that South Korea covered its entire population with LTE in just one year.




Capture d’écran 2014-07-11 à 12.42.24

Filed under: FTTx, LTE No Comments

FTTx services and pricing : positioning of offering


Head of Research, Telecoms Business Unit, IDATE

From less than 40 EUR to more than 100 EUR per month for 100 Mbps access

IDATE’s latest report focuses on the services offered by telecom and cable operators via their FTTx infrastructures. It analyses the various speeds offered, the services included in the offering, pricing tiers and also highlights disparities between regions.

The speed race has not yet reached the finish line

Over the past few months, many operators have announced the launch of new offerings with even higher speeds, thanks to their FTTH/B networks. In the space of six months, no fewer than five operators in Europe have launched 1 Gbps offerings! Up until then, 100 Mbps was considered the norm for ultra-fast broadband (UFB), but now there are many offerings with 300, 400 or 500 Mbps speeds. These are not always very visible and are sometimes not even available as part of a bundle (this is the case with Verizon's 500 Mbps offering, which is only available as a stand-alone service). However, this strategy allows telecom operators using FTTH to differentiate themselves better from cable operators whose peak speeds are normally around 150 to 200 Mbps.

Segmentation of services: speeds and TV/video services prioritised

UFB players do not always go for strong segmentation based on available speeds. As a general rule, plans are built around 3 to 4 speeds, but for some, the offering is limited to 1 or 2 speeds, continuing on from the positioning they adopted in the traditional broadband market.
As for TV and video services, segmentation is sometimes stronger due to providing customers with themed packages (sports, movies, kids), especially for players from English-speaking countries. Generally speaking, telecom and cable operators from English-speaking countries have a very specific approach because they mainly promote video services and TV channels. Speed is only a secondary selling point. Their offerings are characterised by an increasing number of plans available with the ability to customise bundles (or, for more pragmatic players, to help select a pre-configured bundle).
In other regions, the approach seems more pragmatic, with fewer bundles and a more limited choice for end users.

With a lack of innovative services, prices are remaining stable

None of the players studied here offers a particularly innovative service. Most bundle add-ons, such as new set-top box features, cloud-based storage, antivirus, etc., are systematically added to the basic offering. Therefore, operators are unable to differentiate themselves from each other. A very small number of players, such as Altibox in Norway and HKBN in Hong Kong, are exploiting the technical characteristics of FTTH networks to offer genuinely differentiated services with symmetric upload/download speeds. In the short term, it seems very likely that speed (including symmetry, guarantees, faster speeds) will remain the main area to exploit for UFB operators.

This should impact prices offered, which have remained relatively stable in each of the major regions over the past year.












If you want to discover our last study on this subject.