25Jan/160

Media-Telecoms: convergence redux?

Gassot-Yves

Yves Gassot
CEO, IDATE DigiWorld

 

And what if Jean-Marie Messier was ahead of his time? This is a question that many market observers are asking themselves after the deals that took place in 2015. To wit: the largest telco in the United States taking control of the second largest pay-TV provider, while Verizon entered the mobile video market, Vivendi became Telecom Italia’s majority shareholder, the head of Altice and SFR acquired media and football rights, following in the footsteps of BT which had spent over a billion euros in February to secure the exclusive rights to Premier league matches for three years…

Disintermediation of programme access?

Beyond economists’ theoretical and already ancient arguments over the limitations of vertical integration strategies, we need to recognise a new and deeply rooted trend that appears to be going in the opposite direction of a return to convergence. In this era of increasingly ubiquitous high-speed and superfast access, increasingly effective competition between access providers, and of scrupulous attention being paid to net neutrality, even though applications and Internet users are extremely polarised between a handful of platforms, there is no telling whether telcos’ and cablecos’ assets have been strengthened in a way that will allow them to become the main providers of TV products. The trend is more towards globalisation and disintermediation.

It is only a slight exaggeration to say that, with a server and a few technical service providers, anyone can monetise their media rights internationally. Hollywood may have dominated the industry, but the major studios still needed cable networks and largely national TV channels around the world to distribute their wares. Today, they see what Netflix, Amazon and YouTube are doing, and Facebook’s ambitions in the realm of video, and are diving headlong into testing and investing in direct distribution strategies. So it is media rights that matter most and, behind that, being big enough to acquire these rights or be able to self-produce, and amortise the cost thanks to tens of millions of consumers. Telcos’ boldest and most ambitious media strategies must therefore be consistent with their size, or with expectations of their sector’s international consolidation.

Investing in programmes: will it drive telco consolidation?

If this summary argument sketches out the, in many ways new, backdrop to the relationship between container and content, it of course does not mean that all of telcos’ or cablecos’ TV initiatives are bound to fail, even for the smaller ones. They have a legitimate role to play in building an ecosystem around triple and quadruple play bundles, as a way to strengthen customer loyalty. Here, technological developments make it less costly to create a pay-TV plan that combines access to TV channels, and well-crafted indexing and marketing of OTT services. But none of this makes fixed and mobile high-speed access providers the natural choice for main providers of TV programming, and the ones that rights owners will turn to (and pay a hefty fee). The largest telcos can invest heavily in acquiring rights and even exclusive rights, with the hope that these investments will pay off. In many instances, these will be marketing investments, with the aim of increasing their share of the high-speed access market, and now accelerating the pace of customers’ upgrading to superfast (fibre, 4G/5G) plans. We should mention in passing that this belief does not cancel out the belief that mergers between telcos and (even more scattered) TV networks, and partnerships between the two, can be part of an industry-wide strategy that prevents Europe from being the mere victim of a new era of TV industry globalisation. Adhering to this analysis would lead us to conclude that perhaps Jean-Marie Messier was right… albeit too soon.

From a more general standpoint, the challenge for telecom carriers still lies in making profitable investments in the new generation networks that our economies need. From this perspective, video in particular and, beyond that, the whole range of cloud applications and services, are all very positive factors. Not only because they offer opportunities to diversify – operators can of course invest in OTT services or seek to monetise their data – but also and especially because they increase the value of having access to these networks, and open up arenas of differentiation by creating competition that is not based solely on prices.

This opinion piece was published in Les Echos on 11 January 2016          
http://www.lesechos.fr/idees-debats/editos-analyses/021602940246-media-telecoms-le-nouvel-age-de-la-convergence-1191383.php

25Jan/160

Our predictions for 2016

Gassot-Yves

Yves Gassot
CEO, IDATE DigiWorld

 

What topics are likely to make headlines in 2016?

Looking at recent trends, and after having sadly dismissed topics such as – in no particular order – the onset of virtual reality, G-Fast and Docsis 3.1, 5G standardisation, IoT, AI, the introduction of E-SIM, verticals’ digital transformation… four topics in particular come to mind:

Video everywhere

This encompasses an explosion in data traffic on all devices, fuelled by video traffic, the proliferation of video products and new pricing formats from cellular operators – in the vein of Verizon’s Go90 and T-Mobile’s Binge On – associated enhancements to LTE platforms (LTE-A/B/U), Netflix’s global strategy as it marches towards the 100 million subscriber mark by the end of 2016, the race to 4K and HDR TV, debates in Europe over harmonising copyrights, geoblocking limitations…

Digital trust

The increase in a wide range of dangers in digital ecosystems has given birth to a market that is expected to grow twice as fast as the IT market as a whole. By the end of the year, Europe is due to have passed a new data protection directive. Will it provide a new foundation for renegotiating the Safe Harbour agreement and making progress with the Transatlantic Trade and Investment Partnership (TTIP)? Will the ad-blocking phenomenon be made obsolete by the expected virtues of programmatic advertising?

Consolidation

In Europe, we will wonder just how far the consolidation trend can go as we question the hoped-for synergies, the attitude of the anti-trust authorities, the potential impact on prices, on fixed-mobile convergence, on ultrafast fixed and mobile network rollouts, etc.

Meanwhile, in the United States, we don’t yet know whether:

A price war will break out in the mobile market?
Cable’s dominance of the superfast access market could be threatened?
A fixed-mobile convergence trend will take hold as it has in Europe?

FinTech

These represent as much opportunity for innovation as threats to the banks which are involved in their own digital transformation, along with hopes for the creation of a large-scale mobile banking ecosystems with a strong competition between banks, Internet platforms, and telcos, plus concepts that are creating a lot of buzz such as crypto-currency, and more precisely, blockchain technology.

Here’s wishing you a very happy 2016 with IDATE DigiWorld, and we look forward to seeing you at DigiWorld Future and the DigiWorldSummit !

> Read also an opinion from Yves Gassot published in Les Echos «Media-Telecoms: convergence redux? »

25Jan/160

Telco Video Strategies: Towards vertical integration for incumbent telcos?

BAJON_Jacques

Jacques Bajon
Head of Media & Digital Content Business Unit, IDATE DigiWorld

 

Without any surprise OTT Video represents the top traffic on both fixed and mobile networks – telcos have been investing in infrastructures without payback for traffic. In our recent study we highlight the positioning of several key players from the telecom industry and stress out the pros and cons from two-sided business models

Initially, incumbent telcos launched video services for raising customer levels and ARPU gains. They were indeed keen to capture a share of the TV market. They then added features to enhance their value proposition, facing the competition of incumbent TV players and the threat of the over-the-top (OTT) world. Time shifting, multiscreen viewing, live streaming and video on demand, both transaction-based (TVOD) and subscription-based (SVOD), have been progressively adopted by telcos.

Examples of telcos broadcast broadband TV

schema_telco_video

Source: IDATE, in Telco Video Strategies, December 2015

The market at present is a two-sided one where incumbent telcos are targeting both high- and low-income households.

As a first step, this concretises new investments in premium video content, including some initial steps in UHDTV. This again is a must for incumbent telcos, in order to:

Cross-sell: launch attractive video offerings to promote the sale of multiplay (triple- or quad-play) subscriptions

Upsell: use video as a driver to gain higher-income subscribers and to migrate broadband subscribers to FTTH

Secondly, the will to address lower-income households and the ‘new generation’ of cord-cutters and
cord-nevers is leading incumbent telcos to deepen their segmentation of video services, with
more personalisation
:

Skinny-TV bundles, generally providing a basic of TV channels bundled with Internet access for an entry-level subscription price

SVOD services (including third-party, thanks to platform openness) in order to provide the ‘best of’ breed of services and more individual subscription options

Moreover, the development of programmatic advertising, based on their consumer data, is in development and could be a driver for revenues.

The search for operational flexibility and efficiency has also be permanent for incumbent telcos, in different ways:

In order to shorten their ‘Time to video market’, operators should leverage hybrid TV broadcast-broadband solutions through DTT and satellite, to enter new markets, first with OTT-only TV delivery

Telco CDN is must-have for telcos, to better manage OTT video traffic on their network than a revenue generator

Cloud, centralised, solutions should develop step by step in order to easily integrate the unification of consumer interfaces, to create ‘super head-end’ for the rationalisation of OTT services and perhaps to develop future-proof solutions for their video service within, or eventually outside, their network and programmatic advertising services, to launch cloud-PVR services…

Trade-offs can also occur around video hardware at home, including STB-less, skinny STBs or TV dongles around such issues as the ‘operator as an app’ model, including a balance between Smart TV sets and stand-alone streaming boxes.

At the end of the day, facing the competition of Internet giants, the benchmark will be the best possible user experience, to be gained through attractions such as very high-speed networks, flexible and user-friendly service platforms, innovation in services and top-quality content.

Change in IPTV’s share of TV households worldwide, 2012-2016 (million TV households)

schema_telco_video2

Source: IDATE, in Telco Video Strategies, December 2015

Find out more details regarding market framework and players positioning for Telco Video Strategies in our dedicated market report

2Dec/150

Digital first ?

Gassot-Yves

Yves Gassot
CEO, IDATE DigiWorld

The common perception is that digital innovation is everywhere, and that the pace of innovation is accelerating as it applies to every sector, every business and every organisation.

 

Despite which, economists are wary. Productivity gains have clearly been slowing since the mid-2000s, even before the economy collapsed in 2008. And this is not a phenomenon that is confined to Europe, which could explain why it lags behind market leaders, but applies to the US as well. We are reminded of the words of Nobel Prize winning economist, Robert Solow, back in the 1980s: “You see the computer age everywhere but in productivity statistics”. Although we are by no means enjoying gains comparable to those of the 1920s or the great post-war boom, the effects of the Internet revolution can still be seen in statistics for 1995 to 2005. In other words, before the iPhone, before the smartphone and mobile Internet explosion, before 4G, the cloud and the onset of Big Data…

So the experts are divided into two camps: the techno-pessimists aligning themselves with Robert J. Gordon are convinced that the potential for digital innovation is dwindling, sinking very quickly into useless innovations, the latest gadget for the latest smartphone. They do not see any disruptive innovation that will impact productivity and growth in a way that is comparable to the steam engine or the electric motor. After all, they point out, history does not end here: up until the latest industrial revolutions, people in Western societies lived with very moderate productivity gains and GDP growth.

Meanwhile, the techno-optimists aligning themselves with Brynjolfsson and McAfee remain confident, pointing to new waves of innovation with artificial intelligence, new generation robots, the Internet of Things and 3D printing. Even Moore’s Law – the Law named after the co-founder of Intel who, fifty years ago, predicted that the number of transistors in an integrated circuit would double every two years, and which, somewhat unfortunately, appears to have caught on as the measuring stick for the digital revolution’s maturity – is expected to continue to hold true for at least another ten years. From a more general perspective, there are some such as Joel Mokyr who express their optimism by saying we underestimate the effect that the Internet has on change and improving human welfare, on accelerating access to knowledge in every scientific and technical field.

Behind this very black and white division, there are those who are interested in the failures of the statistical apparatus, and of price effects (deflation) that can distort the measurement of the different sectors’ ICT spending. Ultimately, however, their attention is focused on the conditions that would help reduce lag time, which is perceived as the time it takes for digital technologies’ productivity potential to kick in. Here, authors such as Gilbert Cette and Philippe Aghion stress the importance of ambitious and efficient public policies on education and training, seeing them as the cornerstone of a successful innovation policy and an answer to the phenomenon of qualified job opportunities being concentrated in a few major cities. They also stress the importance of reforms if we want to see the Schumpeterian cycle of innovation play out in a fluid and positive way, reduce the divide between a small fraction of highly productive businesses and an economic fabric turning in mediocre performances, while building up the majority’s trust in the digital transformation. We will add that it is useful, as Larry Summers does on a regular basis, to stress the importance under these circumstances of investments in infrastructure (think fibre and superfast mobile) and that we are not forbidden, as Daniel Cohen suggests in his latest work, from calling for an examination of the wisdom and quality of innovation policies, by underscoring the ways in which digital technologies can contribute to turning the tide on climate change.

  Digital innovation vs. secular stagnation?
N° 100 - DigiWorld Econcomic Journal
The DigiWorld Economic Journal, is celebrating its 25th anniversary with this issue No. 100. For this jubilee issue, Gilbert Cette and Yves Gassot Editors have collected contributions from leading economists who examine the links between digital innovation and the associated developments, directly or indirectly, in terms of productivity, growth and job creation. The guest authors do not all adopt the same angle of analysis nor do they all share the same theses... But, in reading this issue, you will discover a different way of thinking about the big questions raised by these topics.
Buy the DigiWorld Economic Journal now !

 

4Nov/150

Europe needs a pro-investment mobile regulatory framework

pujol-75

Frédéric Pujol
Head of radio technologies & spectrum practice, IDATE DigiWorld

IDATE has just released a report on “Mobile operators’ investments”

This paper, published with the support of Ericsson and Qualcomm, investigates the level of mobile revenues, investments (Capex) and usage in Europe, as well as the interrelation between those metrics. The study compares the EU5 (France, Germany, Italy, Spain and the UK) with the other world mobile leaders, namely the USA, Japan and South Korea.

The results show that Europe is falling behind other regions in the use of mobile technology to benefit businesses and consumers and may be jeopardizing the region’s future ability to fully take advantage of evolving wireless technologies. The relative decline of revenue in recent years for Mobile Network Operators (MNOs) appears to be due to policy decisions aimed at maximizing short-term consumer benefits at the expense of long-term investment incentives. The data suggest this strategy is backfiring. The lower revenues in Europe have deterred MNOs from investing, which in turn delays the roll-out of networks and the adoption of services by consumers. Consequently, the unit costs of some services to consumers are higher than in other regions.

Investment in mobile communication infrastructure creates local employment and significantly contributes to growth, as an enabling factor for the digitalisation of other industries.

The Digital Single Market initiative is an opportunity to adopt a pro-investment and pro-innovation mobile regulatory framework, enabling Europe to lead in mobile communication through its attractive market size, growth potential and technology expertise. The findings and data of this study suggest consumers, businesses and individual European economies will benefit from policy makers’ adoption of a balanced regulatory framework that encourages investment in mobile infrastructure and technologies.

> Download the report for free

 

DigiWorld Summit 2015

IDATE will contribute to the debate at the upcoming DigiWorld Summit on 17, 18 and 19 November (Montpellier): “Digital Infrastructure” with:
Michel COMBES, COO, Altice
Thierry BOHNOMME, Senior executive Vice President, Orange Business Group
Santiago Fernandez VALBUENA, Group Strategy Officer, Telefonica
Alain FERRASSE-PALE, President & Managing director, Nokia France

Information & Registration:

www.digiworldsummit.com

 

 

Filed under: LTE, Mobile, Telecom No Comments
16Oct/150

World Telecom Services Market

Didier_Pouillot_N&B

Didier Pouillot
Director of Telecom Economics Business Unit,

A market growing by 2% a year
that will reach 1,219 billion EUR in 2019

 

 

IDATE has released its latest forecasts for the entire global telecom services market in its twice-yearly benchmark report, drawing on fully refreshed datasets on telecom markets around the world.

 Head of IDATE’s Telecom Strategies Business Unit, Didier Pouillot, points out that, “by and large, the market is still under pressure, grappling with a combination of weak growth and a proliferation of offensive strategies working to accelerate the industry’s consolidation”.

According to IDATE, the global revenues from telecom services will grow from 1,097 billion in 2014 to 1,219 billion in 2019, representing an average annual growth of 2.1%.

Revenues from mobile services will grow by nearly 14% between 2014 and 2019 (+2.6% per year on average), reaching 751 billion EUR in 2019.

Revenues associated with data transmission and Internet will grow more strongly (+23% between 2014 and 2019, i.e. +4.2% per year on average), to reach 316 billion EUR in 2019.

The turnover of fixed telephony will continue to decline significantly (-15% between 2014 and 2019, i.e. a decline of 3.2% per year on average), to be at

152 billion EUR in 2018.

Everyone wants to go mobile

According to IDATE, the number of mobile customers worldwide should top the 8 billion mark by the end of 2018 (+16% compared with end of 2014) and increase by a further 200 million the following year (+19% between the end of 2014 and the end of 2019).

With global penetration more than 100% in 2014, subscriber growth is expected to gradually slow down over the next few years.

The number of fixed Internet subscribers is increasing at roughly the same pace, but customer numbers are eight times smaller. The one billion mark is not expected to be reached before 2020.

Traditional landlines continue to loose ground as VoIP and mobile gain ground.

 The spread of broadband

According to IDATE, the number of fixed broadband subscribers is expected to reach 900 million worldwide by the end of 2019. The number of LTE customers is shooting up, with services based on carrier aggregation no longer being limited to just the more developed countries. Three major factors will play in favour of the spread of broadband:

The success of bundled offers (fixed telephony, VoIP, TV, mobile telephony) and the appetite for video applications.

The investment of telecom operators in the migration of their infrastructures to mobile or fixed broadband.

The comfort provided by ultra-fast mobile broadband and the new uses it enables.

Disparate performances from operators in emerging countries

The top telcos in emerging countries experienced a slower rate of growth for their revenues in 2014, with the notable exception of América Móvil. China’s three telcos are reporting stagnant revenues, and China Unicom actually posted a 3.5% decrease. Their margins are come in line with industry standards: between 30% and 40% of EBITDA margins.

Several of these operators are actively engaged in an international expansion into Africa and Latin America, but also into advanced markets, particularly in Europe.

European operators in trouble

European operators continue to suffer. Virtually all of them, except for Deutsche Telekom and Telenor, saw their revenues shrink once again in 2014.

Their spending on LTE and superfast fixed access networks (FTTx) has not yet paid off and helped to bolster ARPU.

Compared growth rates for aggregate worldwide telecom services revenues and global GDP, 2009-2019

Schema_Worldmarket1

Source: IDATE, World telecom services markets and players, June 2015

Changes in the distribution of telecom services income by source of revenue, 2009-2019 (billion EUR)

Schema_Worldmarket2

Source: IDATE, World telecom services markets and players, June 2015

Top 15 telecom operators based on turnover in 2014 (billion EUR)

Schema_Worldmarket3

Source: IDATE, World telecom services markets and players, June 2015

Find out more information on World Telecom Market services in our dedicated market report

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

Filed under: Telecom No Comments
16Oct/150

VOIP and instant messaging

BONNEAU_Vincent-84x126NB

Vincent Bonneau
Director of the Innovation Business unit, IDATE

VOIP and instant messaging have not harmed EU telcos

 

 

IDATE has today published a new report, which shows:

• The introduction of VOIP and instant messaging have not harmed traditional European telcos and associated overall revenues

• In fact, there appears to be a small net benefit: losses to SMS revenues have been balanced by overall increases in revenue from data-tariffs -- driven by demand for services such as VOIP and instant messaging

• While there have undoubtedly been tough challenges for traditional telcos in Europe over the last 10 years, this report shows the biggest challenges have come from EU regulation and internal competition in the telecom industry, especially for voice calls (mobile termination, roaming, transition of telcos to managed VOIP, etc…)

The report does acknowledge that there has been some impact in two specific areas in Europe:

• In countries where SMS price was artificially high (in some cases more than 10 times the price of SMS in other European countries) the decline in SMS revenues was accelerated by instant messaging services, such as Whatsapp. However in countries where SMS has been cheaper or provided as part of an unlimited tariff, Whatsapp and other instant messaging services have had negligible impact on carrier revenues.

• VOIP calls have eaten into international voice calls but the relative losses here are small and in some cases the competing VOIP services have been provided by the carrier themselves.

> Written with financial support from Google, the report is available here.

> Indepth market elements can also be found in reports regurarly published in the DigiWorld Reasearh catalogue from IDATE: “Communication Services

8Oct/150

Déploiement du Très Haut Débit par les collectivités territoriales

ATTALI_Pierre_Michel_NB

Pierre-Michel ATTALI
Directeur de la Business unit Territoires Numériques, IDATE

La Métropole de Lyon renforce l’attractivité de son territoire en investissant dans la desserte généralisée en fibre optique des entreprises, des sites publics et para-publics.


La décision de la Métropole de Lyon illustre l’implication des collectivités territoriales sur l’accélération des déploiements fibre sur les territoires. En effet, au travers de ce projet portant sur la mise en œuvre d’un réseau d’initiative publique (RIP), c’est l’attractivité et la compétitivité du territoire métropolitain qui seront renforcées.

La Métropole de Lyon (Grand Lyon), en attribuant à la société Covage, lors de son Conseil communautaire du 21 septembre 2015, sa délégation de service public très haut débit, entend accélérer la couverture fibre de son territoire. L’IDATE, qui a été l’assistant à maîtrise d’ouvrage de la Métropole de Lyon pendant toute la durée de la procédure, a participé à ce projet ambitieux qui permettra de desservir en fibre optique près de 100 zones d’activités, plus de 400 immeubles d’entreprises, plus de 1100 sites publics et para-publics.

Sur la Métropole de Lyon, la dynamisation des offres à très haut débit à destination des professionnels, des entreprises et des acteurs publics est attendue pour permettre notamment des raccordements sur fibre optique plus aisés et rapides, pour des coûts réduits.

> Délibération du conseil du grand Lyon

L’Observatoire des RIP réalisé par l’IDATE au premier trimestre 2015 pour le compte de la CDC et de la Fédération des Industriels des Réseaux d’Initiative Publique (FIRIP) a mis en évidence que la présence des RIP sur les territoires permettait en particulier :

Un foisonnement de l’offre des opérateurs, avec pour plus de la moitié des RIP la présence de plus de 10 opérateurs proposant leurs services pour les entreprises, les acteurs publics et le grand public.

Présence des opérateurs sur les RIP

schema_GrandLyon

Source : Observatoire 2015 des RIP réalisé par l’IDATE pour la FIRIP et la CDC

 

Des économies substantielles sur les coûts télécoms supportés par le grand public, les entreprises et les acteurs publics : dans le secteur professionnel, c’est ainsi près de 60 M€ au niveau national qui sont économisés par les entreprises et les acteurs publics clients des offres à très haut débit fournies par les opérateurs présents sur les RIP.

Gains annuels sur les coûts télécoms pour le grand public, les entreprises et les sites publics grâce à la présence des RIP

Schema2_GrandLyon

Source : Observatoire 2015 des RIP réalisé par l’IDATE pour la FIRIP et la CDC et données Avicca


L'IDATE, renforce une expertise déjà bien reconnue auprès des collectivités et des Pouvoirs publics locaux et nationaux

Les consultants de la business unit Territoires Numériques de l’IDATE interviennent sur l’ensemble des problématiques numériques en offrant une palette de prestations répondant aux attentes de ses clients, dans les domaines des réseaux à très haut débit, des observatoires et de l'évaluation, du développement économique, et des schémas directeurs d'aménagement numérique.

Dans le domaine de l'aménagement numérique des territoires, l'IDATE a notamment réalisé les SDTAN de la Région Alsace, des Conseils Généraux du Gers, de la Lozère, du Val-de-Marne, du Val-d'Oise, de l'Essonne, de la Loire, du Territoire de Belfort et du Syndicat mixte de l'Aire Urbaine Belfort-Montbéliard.

L'IDATE est également conseil dans la stratégie Très haut débit (THD) et assistant à maîtrise d'ouvrage de la Région Alsace, de Rennes Métropole, ou encore de l'Etablissement public Debitex qui porte un projet de 80 000 prises FTTH sur 27 communes de la Seine-Saint-Denis et du Val-d'Oise.

 

 Plus d'informations sur les expertises et les évènement de Digiworld IDATE :
www.idate.org      www.digiworldsummit.com      www.digiworldweek.com


 

Filed under: FTTx, Internet, Telecom No Comments
6Oct/150

Small cells and Wifi offloading

pujol-75

Frédéric Pujol
Head of radio technologies & spectrum practice, IDATE

Now mainstream for MNOs and key issue for smart city

 

Mobile data traffic is continuing to grow fast. To cope with the data surge, MNOs are in a very complicated situation, where they need both to provide improved coverage or capacity to customers and to proceed with great caution on spending. This latest IDATE report presents the state-of-the art of the small cell and Wifi opportunities to close the gap and highlights strategies at play. It also gives the flavour of future scenarios.

Wifi is not brand-new. It has been playing a key role in releasing network congestion for years because it is not expensive. Seamless connectivity and handover between cellular and Wifi are addressed carefully. Carrier Wifi solutions that promise an enhanced customer experience and security through Passpoint/Hotspot 2.0 are currently implemented by players. Wifi has also been widely adopted to provide voice services through Wifi calling, also known as VoWiFi.

All in all, small cell and carrier Wifi are needed for a smooth transition to 5G, scheduled at the earliest for 2020. IDATE forecasts the small cell market is at last close to take-off. We foresee a huge growth of the small cell market driven by a robust increase in mobile data traffic:

Macrocell densification continues in Europe as population coverage has not yet reached the 95-100% range.

Alongside macro cells, MNOs are increasingly relying on carrier Wifi and small cells to cope with mobile data surge in cost-cautious times. Small cells have extended beyond the first devices dedicated to residential use and moved to urban, enterprise and rural areas. Technical innovations facilitate the management of small cell interference with the macro network. Small cells give the opportunity to come closer to the user and to increase customer experience. They can be installed in street furniture, for instance.

In this face-off between cellular and Wifi, different players want to take a share of the cake.

Wifi-first players appeared in 2014 in the USA with a disruptive proposition: customers are using primarily free Wifi and they switch to paid cellular when Wifi is not available.

With Wifi, cablecos are on the road to offer quad-play services. Mobile is both an additive strategy to grow into a new market segment and a defensive strategy to cement cable’s stronghold in households.

OTTs were very successful in creating innovative services and in expanding them to many different devices. With a 20 USD plan, Google Fi is able to threaten MNOs in the USA and to attract young price-sensitive customers. Apple was very successful in eating into MNO revenues with popular iPhone services.

Small cells as a strategic path to the smart city

Small cells can use existing street furniture such as lamp posts, billboards or bus stops to come closer to the customers: JCDecaux pioneered the concept of subsidizing public street furniture in exchange for rights to advertise. Installation can also be done on municipality furniture such as lighting poles and traffic lights: Philips promotes actively the LED technology. Supporting digital lamp posts, it signed a partnership with Ericsson to integrate Ericsson’s small cell equipment in lamp posts.

 Towards hyper density and emergence of smart cities

Schema_Small_cells

Source: IDATE, Small cells and Wifi offloading, August 2015

 Find out more information on "Small cells and Wifi offloading" in our dedicated market report

More informations about IDATE's expertise and events :

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

30Sep/150

Digital First

DWS2015

ICT industry players vs. the new disrupters

 


From 17 to 19 November 2015, the 37th annual DigiWorld Summit will bring together 140 top-tier speakers from around the world to Montpellier, to share their views with the more than 1,200 participants from over 25 countries. French Tech will also be in the spotlight during the 2nd annual DigiWorld Week and at the inaugural DigiWorld Awards.

For IDATE Chairman, François Barrault, the theme of “Digital-First” – which was chosen in concert with DigiWorld Institute members – “refers to the tremendous rise of digital technologies in the business world, and huge changes in consumer behaviours. This astonishing acceleration is upsetting the status quo and shaking up the traditional economy, paving the way for new business models ushered in by the digital economy”.

Supervising the programme is IDATE CEO, Yves Gassot, drawing on IDATE consultants’ knowledge and expertise. “Once again this year,” says Mr Gassot, “the participants coming to Montpellier will get an invaluable, detailed snapshot of all of the latest digital industry events, thanks to the plenary sessions and the many forums, and to a large and prestigious panel of speakers from Europe, the United States and China who will be on hand to debate the multifarious questions raised by the ongoing digital revolution”:

What are the promises of this new age of knowledge? with Jimmy WALES, Founder, Wikipedia
How is the Internet changing the travel industry? with Peter VERHOEVEN, Managing Director EMEA, Booking.com and Alex SCHLEIFER, Head of Design, Airbnb
How are veteran toy companies reacting to the video game invasion? with Dan JUDKINS, Head of Global Design and Development, Hasbro Inc.
How are the Internet giants adjusting to the changes at work? with Carlo d'ASARO BIONDO, President EMEA strategic relationships, Google
In with the new for a telco going global, with Michel COMBES, COO, Altice
Is everything about to change for telcos? with Santiago Fernández VALBUENA, Group CSO, Telefónica
What services will be attached to smart devices? with Bruno BARLET, Executive VP France, LEGRAND, Vincent CHAMPAIN, Operations Director, General Electric and Xavier BOIDEVEZI, VP Development & Digital, SEB
Just how far can telcos go in helping their customers’ digital transformation? with Thierry BONHOMME, Senior Executive Vice President, Orange Business Services
Do we really need new dedicated networks for the Internet of Things? with Geoff MULLIGAN, Chairman, LoRa Alliance and Ludovic LE MOAN, CEO, Sigfox
Will the next Netflix come from China? with WEN Rui, Director of national Business Development, Youku Tudou
Will new gen mobile TV be the new killer app for video? with Richard LUCQUET, Director, Business Development Technology Partnerships & Licensing, Oncue (Verizon)
What does the future hold for a top, integrated telecom equipment supplier? Vincent PENG, President Western Europe, Huawei
Does regulation need to adapt to Internet rules? with Fatima BARROS, Chair 2015, BEREC, Sébastien SORIANO, Chairman, ARCEP and Bruno LASSERRE, Chairman, French competition authority
Can we count on digital markets to deliver a new period of growth? with Georg GRAETZ, Associate-Labour Markets, London Economics School and Jean-Hervé LORENZI, President, Cercle des Économistes
As well as: Accenture, BBC, Bouygues Telecom, Deutsche Telekom, Ericsson, France Télévisions, edX, IBM,
JC Decaux, NEST, Nokia, Qualcom Life, SEB, SNCF, Studio Bagel, Wilseed Studio…

The DigiWorld Summit programme has grown in 2015, to give us a chance to explore the ins and outs of the tremendous and wide-reaching effervescence at work in digital industries today: “This is why we are hosting the second annual DigiWorld Week, which was designed as a collaborative space for partner events. We will also be hosting the first ever DigiWorld Awards, which were created to identify and reward French talent abroad, with special guest, Axelle Lemaire, French Minister of State for the Digital Sector,” explains IDATE’ deputy CEO, Jean-Dominique Séval.

> View the complete programme at:http://digiworldsummit.com

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 through symposiums, workshops, hackathons, exhibitions, festivals, master classes, digital café… Exploring a host of topics, including the cloud, IoT, eHealth, FX, digital arts, smart agriculture, management, …

> Get the latest news at: www.digiworldweek.com

DigiWorld Awards 19 November 2015
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 winning start-ups will be added to the international innovation support programmes being run by Accenture, Capgemini, Ericsson and Orange.

> For more details: http://www.digiworldsummit.com/awards

For all the latest information, go to: www.digiworldsummit.com and www.digiworldweek.com

Follow us on Twitter: @DigiWorldIDATE
#DWS15