13Feb/140

Edito by Yves Gassot

GASSOT Yves
 
Yves Gassot

CEO, IDATE


Round-up for 2014

It’s hard, in the first editorial of the year, to avoid laying out the overriding themes that we expect to see play out over the next twelve months. But it is still too early for me to deliver a complete summary of the year gone by, which has become the much-anticipated task of our DigiWorld Yearbook.
You will also need to wait until the next Executive Note to find out the central topic selected for this year’s DigiWorld Summit (but you can already mark your calendars for November 18, 19 and 20).

What I can share with you, however, is our belief in the profound relevance of certain issues, by summarising three topics that we have chosen to explore in this year’s Collaborative Research Programme (CRP 2014). These are think tanks open to existing IDATE member companies and those wanting to join, who will work for close to a year with a dedicated team of our analysts on the following subjects:

Telecoms USA: model or counter-model?

Following thorough on the two projects carried out in Brussels in 2012 and 2013 on telcos’ new business models, and the new European policy options being considered, we will work to deepen our understanding of the specific points that explain the different directions being taken on either side of the Atlantic.

The internet of things: will everything be connected?

We are going to analyse the true potential of the internet of things, by taking account of the developments that need to occur in the technical environment, difficulties in generating income from both consumer objects and industry applications and, finally, governance and personal data ownership issues, with tie-ins to our 2013 think tank on personal data

What will tomorrow’s TV and video networks look like?

Here we are building on the 2013 Video as a Service think tank by exploring issues surrounding the future of television and video distribution networks, and by analysing long-term scenarios for the delivery of TV and video products, taking particular account of the cooperation and convergence between networks, i.e. hybridisation involving both fixed and cellular networks

Other topics may be added to the CRP. For instance, we are contemplating an ambitious project that aims to define what could be a comprehensive, metropolitan area-scale digital investment strategy, going beyond marketing clichés and segmented vertical approaches.

I can also tell you that the next issue of Communications & Strategies (DigiWorld Economic journal) will be published in March, and is shaping up to be a promising one. It will be devoted to scoring Europe’s telecommunications sector, and examining potentially clashing policies.
And, finally, a reminder that the best way to delve into the subjects that are consuming our teams is though the reports that we publish every month as part of our annual Market Research programme.

27Nov/13Off

[CR] NGN Funding – DigiWorld Summit 2013

DigiWorld Summit 2013 - The digital gold mines

Thomas CALDIRONI

Consultant at IDATE

Réseaux Très Haut Débit et intervention publique

Financement dréseaux Très Haut Débit - Articulation acteurs publics/privés

En France depuis 2004 et la loi pour la confiance dans l'économie numérique, mais aussi à l'étranger, l'intervention publique dans les réseaux Haut et Très Haut Débit est une réalité avec un impact direct sur l'aménagement numérique des territoires, mais également sur la création d'activités et d'emplois. Ces interventions publiques ont pris des formes différentes afin de permettre de garantir une bonne articulation entre investissements privés et intervention publique.

Retrouvez le programme et les intervenants du séminaire NGN Funding

L'intervention publique est évidemment incontournable pour aménager en très haut débit les territoires. Le THD par la seule action du marché, n'impacte que les zones denses et moyennement denses. Les zones moins denses et rurales sont délaissées par les opérateurs privés, légitimement vu l'absence de rentabilité, accentuant ainsi la "fracture numérique".

Le déploiement des réseaux à très haut débit est une véritable source de croissance pour l'ensemble de l'économie avec à la clé la création de plusieurs milliers d'emplois. En ce sens, les acteurs publics ne peuvent être absents de ces infrastructures qui sont essentielles pour le 21ième siècle au même titre que l'ont été les réseaux d'électricité ou de transport pour le 20ième siècle.

Il s'agit en effet d'abord d'emplois directs pour construire et exploiter ces réseaux, avec des emplois non délocalisables. Mais au-delà des emplois directs, il s'agit aussi d'emplois indirects, du fait de l'accroissement de compétitivité issu de ces réseaux et qui va bénéficier à l'ensemble des filières économiques et du fait aussi des nouveaux services et usages du numérique qui vont se développer.

perspectives THD en France by IDATE & FiRiP

Source :Synthèse de l’Observatoire des entreprises intervenant dans les Réseaux d’Initiative Publique (RIP) – Enquête FIRIP / IDATE

Les collectivités locales en France ont pris conscience des enjeux liés au THD pour leurs territoires. Les Schémas Directeurs Territoriaux d'Aménagement Numérique (SDTAN), portent désormais sur 98 départements, soit la quasi-totalité du territoire national. Ces SDTAN permettent une bonne articulation entre les déploiements privés ciblant les zones très denses ou moyennement denses et l'intervention publique centrée sur les zones peu denses.

Les faits

• L'intervention publique est indispensable pour le déploiement du Très Haut Débit ;
• Le déploiement de la fibre optique public et privé génère des emplois directs non délocalisables et des emplois indirects ;
• Le partenariat entre le public et le privé est nécessaire pour le développement du Très Haut Débit ;

Les citations

"Est-ce que le pari du Très Haut Débit ne vaut pas la peine d'être tenté ?" Pierre-Michel Attali, IDATE

• "Les RIP départementaux et régionaux ont permis le déploiement de 373 000 prises FTTH, le dégroupage de 828 000 prises ADSL, de raccorder en fibre optique 2 500 ZA, ainsi que de rendre raccordable en fibre optique 9 000 sites publics" Christophe Genter, Caisse des dépôts et Consignation

"Les RIP ont permis la création de 3 000 emplois directs, non délocalisables mais exportables. En 2012, les entreprises de la filière RIP ont généré un chiffre d'affaire de 1.1 milliards d'euros" Etienne Dugas, FIRIP

"La qualité du partenariat public / privé permet de faciliter le déploiement du FTTH sur l'ensemble des territoires" Rachid Adda, Conseil Général Val d'Oise

" Market operators continue to invest around 15 bn annually for fixed network roll-outs in Europe" Jussi Hatonen, European Investment Bank

"Le marché des RIP est très actif en France, mais pour assurer la réussite des RIP, il faut que les collectivités soient maître de leurs réseaux grâce notamment au lancement de services activés" David Elfassy, Altitude infrastructure

"La fibre optique est une infrastructure essentielle du 21ième siècle au même titre que l'électricité au 20ème siècle " Pierre-Eric Saint-André, Axione

"En France, plus de 300 000 foyers n'ont pas accès à internet : dès à présent, le satellite propose des solutions économiques, simples et performantes" Philippe Baudrier, Eutelsat

"Est-ce que le pari du Très Haut Débit ne vaut pas la peine d'être tenté ?" Pierre-Michel Attali, IDATE

"Les RIP départementaux et régionaux ont permis le déploiement de 373 000 prises FTTH, le dégroupage de 828 000 prises ADSL, de raccorder en fibre optique 2 500 ZA, ainsi que de rendre raccordable en fibre optique 9 000 sites publics" Christophe Genter, Caisse des dépôts et Consignation

"Les RIP ont permis la création de 3 000 emplois directs, non délocalisables mais exportables. En 2012, les entreprises de la filière RIP ont généré un chiffre d'affaire de 1.1 milliards d'euros" Etienne Dugas, FIRIP

"La qualité du partenariat public / privé permet de faciliter le déploiement du FTTH sur l'ensemble des territoires" Rachid Adda, Conseil Général Val d'Oise

" Market operators continue to invest around 15 bn annually for fixed network roll-outs in Europe" Jussi Hatonen, European Investment Bank

"Le marché des RIP est très actif en France, mais pour assurer la réussite des RIP, il faut que les collectivités soient maître de leurs réseaux grâce notamment au lancement de services activés" David Elfassy, Altitude infrastructure

"La fibre optique est une infrastructure essentielle du 21ième siècle au même titre que l'électricité au 20ème siècle" Pierre-Eric Saint-André, Axione

"En France, plus de 300 000 foyers n'ont pas accès à internet : dès à présent, le satellite propose des solutions économiques, simples et performantes" Philippe Baudrier, Eutelsat

A propos

Pierre Michel Attali et les consultants de l’unité Développement de l'IDATE accompagnent les collectivités locales (Régions, Départements, Agglomérations, Villes) dans leur réflexion stratégique pour la mise en œuvre des Technologies de l'Information sur leurs territoires, au travers de projets de type schéma directeur de haut et très haut débit et de missions d'assistance à maîtrise d'ouvrage pour le déploiement opérationnel des réseaux.

L’unité Développement de l'IDATE a une expertise reconnue auprès des collectivités et des pouvoirs publics locaux et nationaux. Les consultants interviennent sur l’ensemble des problématiques numériques en offrant une palette de prestations répondant aux attentes des clients de l'IDATE.

DigiWorld Summit - du 19 au 21 Novembre 2013

Retrouvez les médias enrichis produits pendant la conférence :

26Nov/13Off

[CR] Future Internet Networks – DigiWorld Summit

DigiWorld Summit 2013 - The digital gold mines

Julien GaudemerJulien GAUDEMER

Consultant at IDATE

Future Internet Networks

More and more devices connected, more and more service providers, more and more content consumed… leading to more and more data traffic! In this seminar, experts, network equipment providers and operators have drawn on how the future Internet networks may look like through the analysis of the major emerging trends by 2025 : SDN (Software Defined Network), NFV (Network Function Virtualization), 5G, M2M (Machine to Machine) and Internet of Things have been at the center of discussions.

Find the programme and speakers of the Future Internet Networks Seminar online

Introducing a new era of network infrastructure with SDN and network virtualization

The first round table provided hot discussions on SDN and NFV with speakers from telco, from network solutions and from network equipment manufacturer. These are the questions asked to the speakers:

When future network will be rolled out?

• Network is the next step in the virtualization trend following servers and storage. SDN and NFV require important changes, proof of concept, and trials before a roll out. Such steps require years.
• Moreover, as Ryan SHUTTLEWORTH from Verizon said “SDN and NFV are not mature technologies yet.” SDN is currently rolled out at the scale of a datacenter and not really at a telco network level.

What are the main drivers?

• Savings is the first obvious driver of such technologies, but generated new revenues are also an important benefit to consider. The agility and the simplification of operations are also strong promises of SDN.
• Besides, the ability to make a link between cloud services (virtualized servers) and the virtualized network should be an interesting benefit.

What is the impact on the ecosystem?

• On the supplier side, new suppliers are expected to come. Moreover, the elasticity of the infrastructures created by SDN and NFV can lead to new business models. It will also enable a new level of developers.
• In general, changes related to the implementation of these new networks will have to be managed internally by both equipment vendors and telcos. Those who manage correctly IT, network and cloud will be able to leverage a strong competitive advantage.

Another aspect has been introduced then, related to content distribution: the future of Content Delivery Networks, illustrated by Ahmet OZALP from Akamai. He presented 11 predictions for this future. Among these predictions:

• As traffic will grow exponentially, CDN should be used also more and more in order to reduce the overall traffic. In 2012, CDN traffic was 53% of all consumer traffic and should be up to 65% in 2017 according to Akamai.
• Connected devices will bring complexity to deliver services correctly: especially Connected TVs and Home consoles. All devices support various protocols and formats that has to be handled to deliver services.
• CDN architectures should evolve. In the future the content will be closer to the end-user, providing cache servers closer to the access network, as in the figure below from Akamai presentation.

The future of Content Delivery Networks

pay-TV market USA

Source: Ahmet OZALP from Akamai

• The cooperation between CDN and telcos will be stronger in the future in order to reduce the traffic. In addition, CDN should enhance OTT video quality, exceeding traditional TV quality level. CDN services should become more and more cost effective. In the end, CDN market will have a healthy growth.

The focus of this seminar then shift to Franck BOUETARD from Ericsson with a presentation of Marc Plaszczynski, from Thales Alenia Space.

• Regarding the evolution of satellites, Mr. Plaszczynski mentioned that “Satellite Systems have enhanced their broadcast capabilities with high-value, integrated, flexible and interactive new Satellite solutions”.
• In addition, Satellite systems are adapting to support efficiently the Future Internet Networks evolution with hybrid end-to-end Systems. Satellite systems have also made improvements a comprehensive set of skills and solutions to foresee the unforeseeable.

Franck BOUETARD from Ericsson then presented his view on drivers of the future networks and 5G. He especially mentioned the Metis Consortium, 29 partners led by Ericsson, looking to 5G for after 2020. There are 5 things to address as mentioned in the figure below. Drivers for future networks are mobility, video traffic, 50 billion connected devices, high speed access, Network cloud and QoS.

Metis Project Objectives Ericsson

Source: Franck BOUETARD's slides, Ericsson

Tailoring future networks for the Internet of Things

Samuel Ropert from IDATE then introduced the second round table about Internet of Things :

• M2M is the first step of IoT. It is especially a combination of various value chains: electronic, telecom, computing, and machines themselves
• IDATE forecast; in 2017, M2M SIM cards represent
- 5,9% of all SIM cards (human and machine) worldwide
- 14% of all SIM cards in Europe
• BUT In 2017, M2M connectivity revenues represent
- 1.3% of mobile revenues worldwide

The main topics discussed during this round table are as followed:

Technologies Issues

• Regarding communication technologies, M2M players mentioned that they are focusing particularly on 2G, low energy equipment, low bandwidth, as low cost is fine for objects. 4G is 7 time more expensive than 2G. Working on special 4G for machines require standardization, expected for 2017-18. Use cases are also important. For cars for example, LTE may make sense, even if expensive. Another example is video surveillance that is expensive but 4G brings quality.
• Regarding security issues, wireless is secure. The issue is protecting user privacy. For instance cars: driving too fast, location … can be obtained through M2M, but how do we protect privacy? The EU is trying to tackle the problem, but it all comes down to privacy, how is it guaranteed?

Need for standardization?

• M2M is everything but standardized. A lot of use cases are emerging, but no standards. Gathering the right data is difficult, accurately, and analyzing it. It is not a problem of big (too much) data, but accuracy.
• There is maybe a need for hierarchy of objects for standardization. In the last 5 years: it has been pushed by regulation. Ehealth seems to be most promising growth.

What role will startups play?

• They can play active role in creating applications.

Nicolas Demassieux from Orange concluded the session with a longer perspective vision on future networks. He especially mentioned that SDN can be compared to PC computer architecture with hardware managed by software, managed by the user. More generally, the current concept of communication infrastructures will be transformed to services distributed across “device + Network + Cloud”.

DigiWorld Summit - 19th to 21st Nomember 2013

Retrieve all the user generated contents and rich media from the DigiWorld Summit 2013

28Oct/13Off

Despite stiff competition, satellite still making strides thanks to emerging markets

Stéphanie Villaret, Co-Head of Satellite Practice at IDATE

 

Stéphanie Villaret
Co-Head of Satellite Practice at IDATE

 

Satellite is holding onto its position in the global TV broadcasting market when going up against terrestrial networks. At the end of 2012, it had a roughly 27% share of the market and rising steadily, in both free to air (FTA) broadcasting and pay-TV distribution. But the situation does differ from region to region. Satellite’s growth rate in the DTH (direct to home) and especially the pay-TV market has been tremendous in a great many emerging countries. It has become a prime purveyor of TV programming, and helped drive the rise of pay-TV in Eastern Europe, in Latin and in Africa/the Middle East.

Satellite's global market share at the end of 2012 (% of TV homes & % of pay-TV homes)

Source: IDATE, rapport d'approfondissement "Le marché mondial de la télévision par satellite", Août 2013

Main evolutions of the Satellite TV market

  • Global demand for satellite broadcasting capacity is expected to increase by an average 4% a year between now and 2017. The market is forecast at close to €5.4 billion in 2017 – which translates into an average annual growth rate of around 3% for market revenue over the next four years.
  • The rise in demand for satellite broadcasting capacity is being driven chiefly by:
    • A thriving TV market in emerging regions, which means an increase in the number of TV channels on offer (SD and HD) and the rollout of new pay-TV packages – particularly national DTH plans;
    • The development across the board of high definition TV channels, both free to air and paid. HD channels are expected to account for 20% of all channels broadcast worldwide in 2017 – keeping in mind that SD/HD simulcasting is likely to continue on through 2013-2017. A total of more than 7,000 HD channels are expected to be available in 2017, compared to slightly less than 5,000 in 2013, of which close to 40% will be in North America;
    • The gradual development of ultra HD starting in 2015, with the launch of the first test channels, and later the rollout of the first UHD channels – primarily in developed markets, but also in the more advanced emerging regions. This will have an only minimal effect on demand for satellite broadcasting capacity from 2013 to 2017, but the new service will seriously drive up demand further down the road.
  • The following actions will help satellite operators boost their business:
    • Optimise satellite capacity to supply emerging regions, and possibly acquire local providers;
    • Lobby to promote the premium aspect of satellite broadcasting solutions;
    • Successfully integrate hybrid architectures and become a vital part of digital home solutions in developed regions. The challenge here will be to transition successfully from linear TV broadcasting, at which satellite excels, to the world of video on demand and interactivity – which means delivering value-added solutions for both media companies and viewers.

Our newest Satellite television worldwide market report delivers careful analysis and looks into the future of satellite TV broadcasting – at a time when this market that accounts for 78% of satellite service revenue is having to contend with a series of threats, from 2013 to 2017.

26Sep/13Off

In-Flight Connectivity: Satellite vs LTE

Maxime Baudry, Co-Head of Satellite Practice at IDATE

 

Maxime Baudry
Co-Head of Satellite Practice

 

43% of worldwide commercial aircrafts will be connected for broadband access services in 2017 against only 17.5% at end-2012

Until quite recently, the aviation communications market was limited to operational communications between the cockpit and control tower. It is now expanding to include voice and data communications for passengers around the world, a market that, while still limited, is set to grow in the next few years. The technology has been around for a number of years, but Boeing’s CBB service failed to convince airlines back in 2004. As airlines compete fiercely among themselves and with other modes of transport, the benefits of passengers being able to use their cell phones or go online via their laptops or tablets could prove a very strong selling point.

The in-flight connectivity market is rapidly expanding around the world

  • The market for broadband access on planes will continue to grow in response to strong demand from air passengers for connectivity.
  • Expectations run very high: air passengers are seeking the same quality service and experience they have grown accustomed to with terrestrial connections.
  • Applications are still mainly focused on internet browsing and emails, but video consumption increases rapidly
  • To meet these expectations, one by one, airlines are equipping their fleets with broadband Internet access. By mid-2013, over a third of domestic flights (38%) in the United States offered an Internet access solution.
  • We now see a sharp increase in the number of equipped planes in all geographical regions of the globe, although virtually all of the systems currently in operation are in North America.
Evolution of "connected" aircrafts between 2010 and 2012

inflight connectivity lte vs satellite

Source: IDATE, Market Insight "Inflight conenctivity: Satellite vs LTE", August 2013

The business model remains uncertain

  • Revenue-sharing is the most common business model today. A price is agreed between the operator and airline and the revenues then shared, the operator usually taking a larger cut than the airline;
  • According to IDATE, the revenues from these services are not sufficient to generate a profit. They essentially cover just the operating costs (purchase of bandwidth, system maintenance and extra fuel consumption due to the weight of the terminal and increased drag on the plane);
  • In the future, these services could not be extra-charged
  • According to IDATE, there are still doubts regarding a sustainable business model, especially because the still weak adoption rate for paid-services (approximately 7%)

Satellite access solutions should face competition from LTE by 2016

  • Two solutions currently exist: an Air-To-Ground (ATG) solution in the United States, which is losing pace due to the lack of adequate spectrum, and the satellite solution (Ku and Ka frequency bands).
  • The introduction of Ka-band systems should revolutionize the market, providing access to much faster speeds (from 2 to 12 Mbps per passenger) at much lower prices (bandwidth costs up to 10 times cheaper).
  • By 2016, however, satellite will face competition from LTE, a technology currently being tested by manufacturers such as Alcatel-Lucent, ZTE and Huawei for in-flight connectivity on commercial aircraft.
  • LTE solutions could reach speeds of 30 Mbps per plane, with much lower CAPEX and OPEX.

IDATE estimates that 43% of aircraft will be connected in 2017

  • According to our estimates, at end-2012, more than 2 700 commercial aircraft worldwide offered a broadband Internet service, 80% of these via the Gogo terrestrial solution.
    This figure represents just 17% of the total fleet of planes worldwide, which Airbus estimates at 15 500 aircraft.
  • According to IDATE, the market for broadband Internet access on planes should expand sharply between now and 2017, reaching 8 240 aircraft in 2017 (43% of the total fleet in service worldwide).
  • Market is facing a complete hybridization of ATG LTE & Satellite services up to 2020.

IDATE's new insight "In-Flight Connectivity" provides its readers with a synoptic overview of the latest changes in the In-Flight Broadband market. It showcases the market's current services and usages, analyzes the various business models, details the existing satellite solutions and proposes a prospective for 2017, taking in account the emerging Air-To-Ground solutions based on LTE technology.

27Aug/13Off

Satellite Growth Engines

Maxime Baudry, Co-Head of Satellite Practice at IDATE
Maxime Baudry
Co-Head of Satellite Practice at IDATE

Satellite faces a host of challenges

The shift in video viewing to more on-demand consumption, the massive reduction in the cost of terrestrial bandwidth and the explosion of spectrum-hungry terrestrial mobile broadband services are some of the challenges facing players in the satellite industry. If satellite is to hold its ground it must position itself effectively with respect to terrestrial, because in IDATE’s view, the technology is often more geared to competition rather than co-opetition. We have selected a number of important markets that illustrate these challenges and satellite’s current market positioning.

  • The global market for satellite broadcasting (DTH) doubled in size between 2005 and 2011, reaching USD 84.4 billion in 2011, i.e. 78% of the total revenue generated by satellite services. Satellite’s share of the TV distribution market (both free and pay-TV channels) was around 25% with steady growth. The television market has seen many changes in consumption patterns as well as service offerings and distribution solutions, and these are likely to cast doubt on the business models of traditional market players. Unlike cable, which is losing ground to IPTV, satellite will continue to grow to 2017 and expand its market shares.
Weight of satellite around the world (% of TV homes & % of pay-TV homes)

Source: IDATE, "Satellite – Outlook for some key markets", June 2013
  • The two-way access market is also an important growth hub for satellite, although performance does vary from one geographical region to another. Our forecasts show that North America will remain the dominant market, sustained by very competitive solutions and still limited network coverage in some remote areas of the territory. The European market is taking off, mainly due to dynamic performance in certain countries, led by France. However, telcos are starting to deploy LTE-based residential solutions in these markets which are often more competitive than satellite (particularly the equipment, which is cheaper and installed for free).
  • Some niche markets are also growth outlets, although overall they account for less than 10% of the satellite capacity used. The main niche market is satellite M2M for use at sea or in remote terrestrial locations. While still a growth market, it faces increasing competition from terrestrial mobile networks (M2M cards with 3G, and LTE in a few months time)..
Positioning of main operators for satellite M2M

Source: IDATE, "Satellite – Outlook for some key markets", June 2013
  • The Earth observation market recently became an important growth engine for the satellite industry, driven by two very different types of customer. Around 80% of the demand for images comes from the military, mainly to gather information in areas of conflict (surveillance of nuclear proliferation facilities, terrorist camps, etc.). The other important segment is sustained by the geolocalised imagery market where customers purchase large quantities of high-resolution images for online mapping portals, such as Google Maps and Microsoft Virtual Earth. However, demand does seem to be slipping slightly as images are refreshed less frequently.

This analysis is an extract from our Satellite: outlook for some key markets Market Insight which we propose within our ongoing monitoring of Satellite market.

Filed under: Satellite Comments Off
10Jun/13Off

The state of the digital world in figures

Interview with Didier Pouillot, Digiworld Yearbook project manager

Interview published in weekly letter from ARCEP - 7 June 2013

Find the intervew Didier Pouillot by ARCEP on the occasion of the publication of the 13th of the DigiWorld Yearbook: our annual publication on the state of the digital world. (Interview available in french only)

Source: ARCEP's website

Didier Pouillot reviews the status and trends of DigiWorld markets: telecommunications, computer and television, an economy that accounts for 6% of global GDP, but whose performance is currently short of those of the general economy, particularly in Europe, on which Didier Pouillot explains the situation. This is also an opportunity to recall the issues in each market of the digital economy with many business models are changing mainly because of internet giants: Facebook, Amazon, Google, Microsoft and Apple, and more broadly OTT services.

Discover the slides from the London Yearbook presentation with Ronan Dune, CEO Telefónica :

Digiworld Yearbook 2013 Presentation in London, with Ronan Dunne, CEO Telefónica UK Limited. from DigiWorld by IDATE

About the Digiworld Yearbook

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT

 

  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/
30May/13Off

Scorecard for the digital economy in 2012

Digiworld Yearbook 2013 : scorecard for the digital economy in 2012

DigiWorld markets took a hit in 2012, with growth dropping to 2.7% after two years on the road to recovery.

DigiWorld markets took a hit in 2012, with growth dropping to 2.7% after two years on the road to recovery. Meanwhile new online, or over-the-top (OTT), services continue to grow by around 20% on average—although, in terms of revenue, they are still outweighed by veteran solutions by more than 20 to 1.

Digiworld Market figures and forecasts 2010 to 2016

Hardware markets have been the hardest hit, with growth dropping by 2.4 points overall in telecom, IT and consumer electronics (CE) markets combined. The first two are still in the black, thanks in large part to rising smartphone sales on the telecom front, and strong tablet sales on the IT front. CE hardware (audio and video equipment) is in bad shape, however. Television sales, which are naturally one of the market’s mainstays, are struggling to find a boost comparable to the one delivered by the introduction of fl at screens in the 2000s.

Services, meanwhile, have fared somewhat better, with growth rates of between 2.7% for telecommunications and 4% for television, by way of 3.8% for IT and software services. These markets outperformed hardware segments in 2012 and were far more homogenous. Yet there are still huge gaps in regional performance levels across the board (see next chapter).

Hardware markets gasping for air

At the end of 2010, we saw signs of concern in certain hardware segments—despite what had appeared to be a year of recovery by and large. PC sales were down, and the industry was already wondering what new products would help keep TV sales on the up (3DTV? Connected TV?). Results for 2011 were relatively reassuring, with sales continuing to rise in both the telecom and IT markets. Only consumer electronics was suffering, although not too badly. Still, 2012 proved a blow, with sales dropping virtually across the board, and pressure on prices largely eradicating any positive infl ux from users upgrading to new devices. TV sales were the hardest hit, and propelled the 7% drop in sales for the CE sector. Increased competition in the smartphone and tablet markets have also shaken things up in the other two sectors.

Services markets still holding on

When the recession was at its height in 2009, the boast was made that ICT services in general and telecom services in particular could weather any storm: there was much talk of resilience, no doubt thinking that, as with counterpart hardware, these services were not only able to take the blows but also to rebound, and find their way back to their initial trajectory. That was then. Although there is no denying a certain relative resistance, it now seems very unlikely that we will return at any point to the growth rates of the mid-2000s, and even less to the double-digit growth of the late 1990s. Or rather, that only a slim portion of services will—thanks to the explosion of new online services. Core veteran services, on the other hand, are up against a new set of pressures from these fledgling rivals: decreased value of telecom services, of customer relations for IT services, and of programming for TV networks.

About the Digiworld Yearbook

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT

 

  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/
15Apr/13Off

Residential LTE vs. Satellite broadband

Maxime Baudry, Co-Head of Satellite Practice at IDATE

Maxime Baudry
Co-Head of Satellite Practice at IDATE

Perspectives for satellite broadband facing residential LTE offerings

Just as they did with 3G, telcos started to propose residential offers based on LTE, how does it compare with satellite broadband offers?

Residential LTE, a direct competitor to satellite broadband

ust as they did with 3G, telcos started to propose residential offers based on LTE. It’s notably the case of Verizon Wireless in the United States who proposes “Home Fusion” since May 2012, a service that allows households to access broadband via an outdoor LTE antenna installed on one of the walls of the building. The antenna is billed 200 USD but the installation is free. How does it compare with satellite broadband offers? Downloading speeds vary between 5 and 12 Mbps in average with a pricing range going from 60USD for 10GB of data to 120 USD Monthly for 120 GB. With similarities in pricing, downloading speeds and data caps, LTE is positioned as a direct competitor to Satellite broadband.

Residential LTE coming to Europe

In Europe, first LTE offers arrive on the market. The first to propose such services was Netcom, a filial of TeliaSonera, who was first to propose LTE in Norway. It offers 100GB of data for a monthly fee of 68 EUR. According to Netcom, it is very likely that this kind of solution could be considered as a substitute to DSL, especially when the monthly data cap exceeds observed traffic on DSL networks (An average of 30 GB per household). In germany, Vodafone proposes a similar offer since 2012, but this time it is differentiated with quality of service through network speed with prices starting from 25 EUR to 40 EUR monthly to have access to 50 Mbps and 30 GB.

Satellite Broadband: no more competitive?

Considering this kind of offers, satellite broadband is no more competitive, neither on network speed nor on monthly data cap offered. Even though these new offerings materializes the LTE threat for satellite broadband we had foreseen, LTE coverage remains very limited. Anyhow, satellite will have to pursue its downloading speeds increase since 2008 if it wants to maintain a competitive advantage on this market.

Positioning of some satellite broadband offers in France, March 2013

saterllite_broadband_france

Source: Digiworld by IDATE

Maxime Baudry
Head of the radio technologies & spectrum practice, IDATE
m.baudry@idate.org

>More information about Satellite Ultra Broadband in Europe

18Mar/13Off

Satellite Broadcast: Main trends and impacts for the industry

Maxime Baudry, Co-Head of Satellite Practice at IDATE

Maxime Baudry
Co-Head of Satellite Practice at IDATE

Satellite TV broadcast booming in emerging countries

Satellite TV broadcast is put in the forefront with our analysts attending the Satellite 2013 summit in Washington, USA from march 18 to 21 2013

Satellite broadcasting is currently being led by the explosive development in emerging countries. According to IDATE’s findings, there were at year-end 2012, 372 million satellite households with more than a half located in emerging countries. As an example, the Indian satellite pay-TV market registered a growth of 20 million households in only two years, to reach an estimated base of 51 million subscribers at the end of 2012.

World's current satellite TV broadcast market

Between 2008 and 2011, close to 100 million households worldwide switched over to satellite TV, which is almost identical to how many viewers terrestrial TV lost during that time. To compare, cable TV gained 55.5 million households and IPTV 26.4 million during that period.

Breakdown of the globe’s TV households by access technology

Globe's TV households by access technology

Source: IDATE, World TV Markets, August 2012

Satellite TV is booming in emerging countries

Satellite broadcasting is currently being led by the explosive development in emerging countries. According to IDATE’s findings, there were at year-end 2012, 372 million satellite households with more than a half located in emerging countries. As an example, the Indian satellite pay-TV market registered a growth of 20 million households in only two years, to reach an estimated base of 51 million subscribers at the end of 2012.

Impacts of TV broadcasting for the satellite industry

These developments have great impact on satellite capacity, as it is estimated that emerging countries roughly accounted for 90% of the new satellite capacity leased in 2012. According to SES, the weight of emerging countries in the total demand of satellite capacity worldwide will move from 69% in 2012 to 76% in 2019. Whereas the Western Europe and North American markets are expected to register a CAGR of -0.3% and -0.5% respectively, the Latin American market will for instance grow at a CAGR of 6.3% and the Eastern European one at +3.3%.

Maxime Baudry
Co-Head of Satellite Practice at IDATE
m.baudry@idate.org

More information on Satellite Broadcast in our TV observatory