30Jul/150

Telcos & Digital Services Strategies

BONNEAU_Vincent-84x126NB

Vincent Bonneau
TV Head of IDATE’s Innovation Business Unit, IDATE

 

Key IoT and OTT markets are expected to represent close to 245 billion EUR in 2014 and could reach 440 billion EUR in 2018.

 Telcos are being challenged on their traditional markets, with just 2.5% of CAGR for the upcoming years. Competitive pressure is coming from OTT players but also from within the telecom industry itself, with strong price pressure on connectivity products. At the same time, the development of OTT and, to a lesser extent, of IoT, itself often seen as a major threat for telcos, is increasingly perceived as an opportunity.

Within IoT and OTT markets, a few key markets are driving growth. The biggest markets are by far cloud and advertising (respectively 64 and 93 billion EUR in 2014), with more than 15% of CAGR in the next four years for both markets, thanks to RTB, SaaS and IaaS solutions. Video is the smallest digital market with 18 billion EUR but it is also the fastest growing, thanks to advertising-based formats and SVOD. Financial services are already well developed thanks to carrier billing and e-commerce, while NFC payments remain very marginal. Finally, hopes remain high around cellular M2M markets and the numerous associated markets (notably smart metering, connected health and smart cities), but the overall revenue growth remains moderate despite a huge expansion in volume.

In total, key IoT and OTT markets are expected to represent close to 245 billion EUR in 2014 and could reach 440 billion EUR in 2018, close to one third of telecom markets. Telcos can potentially benefit from a rich number of opportunities around these new markets. They can position themselves as service providers, competing head to head with OTT providers. There are countless other opportunities as technology enablers providing some of the building blocks.

Key digital markets 2014-2018, by sector

2014

2018

CAGR

Cellular M2M

27.7

45.5

13%

Cloud

64.0

125.0

18%

Financial (intermediation only)

24.0

39.2

13%

Video (excluding CDN)

18.0

41.5

23%

Advertising

93.0

163.0

15%

CDN

1.1

2.0

16%

Other digital content (intermediation only)

16.6

25.4

11%

Source : IDATE, La mondialisation de l’industrie audiovisuelle, Avril 2015

Find out more on telco initiatives in digital services and the opportunities levered thereby

 in our dedicated market report

Filed under: Mobile, Telecom No Comments
29Jun/150

Digital First: ICT players vs. the new disrupters

DWS2015

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

26Jun/150

Bouygues Telecom rejects the Numericable-SFR offer

To many, the deal seemed like a foregone conclusion, and we had been looking forward mostly to the negotiations that would steer it to completion (see the attached press release). It is hard to know exactly what motivated the Bouygues Board’s decision.

We ourselves had underscored the tremendous complexity of such a deal that involved the acquisition of the number three operators’ customer base and the sale of its network and a portion of its frequency holdings to the country’s number four operator, Iliad/Free. This dual negotiation was nevertheless necessary, for both financial reasons and to get a jump on the Competition authority’s expected reservations about the merger. Here, we understand that Bouygues was very reluctant to endure the uncertainties of a long period of anti-trust investigation, with no guarantee of substantial compensation should the deal fail to win approval.

To this can be added the federal government’s very strong reservations, and the difficulties in negotiating credible guarantees for the future of the company’s teams and jobs.

Lastly, without underestimating the ability of the Bouygues Telecom team, its 4G network and its frequency holdings to achieve pre-Free EBITDA (25%) by 2017, we cannot discount the possibility of further merger and acquisition deals in the French telecom market.

See the previous post

More informations about IDATE's expertise and events :

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

23Jun/150

Numericable-SFR has confirmed its bid to acquire Bouygues Telecom…

Yves Gassot

Yves Gassot
CEO, IDATE DigiWorld

 

It is a surprise?

No, everyone was expecting it. First, because Altice/Numericable-SFR spokespeople had underscored the appeal of such a deal and, second, because in most European countries we are seeing national market structures going from four to three mobile operators. Such is the already the case in Germany and the UK, and very likely in Italy and Spain.

If we look at the situation outside the European Union, we see that in the United States there are four national operators for as many people as there are in Europe’s five biggest markets combined.

Would this means an increase in retail market prices?

Let’s not forget that, in France and in most other countries in Europe, the sector is in a state of deflation, and has been suffering a steady decline in revenue since 2008. Another outstanding feature of the French market is particularly low prices. While this is of course a positive thing for consumers, it can also be at the expense of investment (which decreased in France in 2014) and innovation: in a healthy competitive environment, price alone must not be the sole element of distinction between vendors.

Second, predicting what the landscape will look like after this merger occurs, Free will no doubt remain very aggressive on the pricing front for mobile products as it works to close the gap with its rivals: it would represent only just over 7% of the sector’s revenue, well behind Orange (43%) and the new SFR with just under 50%. In the fixed line market, the breakdown of market share would be less dramatic (23.5% –41.5% – 35% respectively) but competition should remain quite lively.

Would this mean a decrease in investment?

Theoretically, it is possible that we will see a decrease in telcos’ combined CAPEX. But this remains theoretical if we take into account the situation of a sector that is struggling to get back on its feet, and to invest at a rate that keeps pace with the ongoing increase in superfast fixed and mobile network traffic. Remember that telcos’ spending in France was down in 2014. Here again, it is interesting to compare with the situation in the United States: over the past two years, telcos’ combined per capita spending on mobile networks in the United States was roughly double what is was in Europe’s main markets.

The goal for public authorities and consumer associations examining the deal should include an expectation that it would accelerate the pace of superfast fibre and 4G+ network coverage nationwide.

What have we seen, in terms of prices and investment, in other European countries that have experienced a similar consolidation?

In Germany, it is still too early to draw any conclusions. In the UK, in a market once populated by five operators, the merger of T-Mobile UK and Orange UK in 2009 – which were the country’s third and fourth largest operators, respectively, at the time, with a close to 20% market share each – resulted in the creation of a new leader, EE, with a 37% market share at the outset, but which fell to 32% in 2014. Calling prices in particular decreased steadily: the average price of a mobile calling minute dropped by 17% between 2009 and 2012. The company’s spending decreased in 2010 but rose again in subsequent years: T-Mobile UK and Orange invested an average 9% of their network revenue in 2008, compared to close to 10% for EE in 2014 – although it is also true that the company’s combined revenue decreased by 22% during that time.

In Austria, Hutchison’s takeover of the local Orange subsidiary, which took the market from four operators to three, had the opposite effect: putting an end to ongoing price decreases, and even resulting in a significant increase in 2013 of around 20% on the previous year. Although it should be said that prices in Austria had been very low for a long time. The consolidated entity’s capital expenditures (as part of the 3 conglomerate) dipped slightly, but relative CAPEX rose from 16.5% of the company’s revenue in 2012 to close to 20% in 2014.

What can we expect from the players if the deal goes through?

Numericable-SFR should take in around €2 billion in cash from the sale of the Bouygues Telecom network to Iliad/Free. It should also be able to enjoy economies of scale in the revenue generated from Bouygues Telecom customers, thanks to the new entity’s improved OPEX and CAPEX ratios.

Bouygues is given an exit strategy under terms that are far better than what was on the table six months ago, even if the short-term outlook for free cash flow is not guaranteed.

Iliad can look forward to putting an end to its roaming agreements with Orange, and gaining a 4G network with one of the two best rates of national coverage, without having to have built it itself. The company is also likely to gain access to new frequencies, either directly under the terms of the deal or indirectly as the result of imposed “remedies”.

As to Orange, it will suffer from the lost roaming revenue from Free, earlier than planned, but could also benefit from more stable market prices.

How are antitrust authorities, and public policy-makers in general, likely to react?

The new SFR would become the mobile market leader, earning just under 50% of the sector’s revenue, ahead of Orange with 42% and Free with >7%. This market structure is not likely to curry favour with the competition authority. As concerns the deal itself, the competition authority should view the Bouygues Telecom-Iliad aspect as a guarantee of ongoing competition, as the smallest operator would enjoy a real gain in assets. Depending on the frequency-related options that are included in the terms of the deal, France’s anti-trust authorities could impose further spectrum sales and terms in support of MVNOs.

The biggest issue for public authorities is the destabilising impact on the rules for upcoming auctions being held by market regulator, ARCEP. The original rules had been designed to maximise bidding incentives for a four-player market. Now, they will need to consider how these rules will be affected by the likelihood of a three-player market, keeping in mind that, even if it does go through, the merger is not likely to close before the auctions are held later this year.

In the fixed access market, public authorities could see the deal as a way to strengthen guarantees from operators for superfast fibre network rollouts: chiefly Numericable-SFR and Orange, which are by far the heaviest investors in new gen systems.

More informations about IDATE's expertise and events :

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

Filed under: Internet, Telecom No Comments
10Apr/150

Mobile Gaming, 23 Milliards d’euros d’ici 2018 !

infog google vs apple 2018

Google versus Apple : les deux géants tirent le marché vers le haut et s’affrontent au travers de business models différents

 

L’économie des jeux sur les plateformes nomades est remarquablement efficace, et la concurrence qui s’exerce entre Apple et Google l’est tout autant.

L’App Store d’Apple et Google Play sont les deux principaux appstores du marché en volume d’applications disponibles et téléchargées.

On notera qu’en juillet 2014, ils comptabilisaient chacun plus de 1 million d’applications, loin devant Windows Phone Store, Amazon Appstore et Blackberry World. Aujourd’hui, ces deux appstores rassemblent à eux seuls  quasiment 80% des applications disponibles.

Les chiffres clés du marché mobile mondial à 2018

•    Le nombre de jeux mobiles dépasse de loin le nombre de jeux disponibles sur les autres plateformes de jeux,  offrant de nombreuses perspectives aux grands acteurs.

•    Le marché du jeu mobile s’élève à 12.8 milliards EUR en 2014. 72.6% de la valeur est générée par le jeu sur smartphone et atteindra vraisemblablement les 15 Milliards d’euros d’ici 2018

global mobile market generated by smartphone and tabletsDes modèles économiques innovants : Le free2play séduit de plus en plus de joueurs

Sur téléphone mobile, les 20 plus gros succès de l’année 2014 aux États-Unis sont des Free2Play. Ils étaient 18 en 2013.

•    Sur iTunes Store d’Apple, les jeux payants ne représentent plus que 8% du catalogue, contre 47% en 2012.

•    Le modèle Free2Play cohabite avec le modèle Pay-per-Download, mais le premier est bien plus répandu. Même les acteurs « historiques » du jeu vidéo investis dans le jeu nomade ou les « pure players » du jeu nomade ont passé le cap du Freemium, EA et Gameloft en tête.

Ce modèle a vocation à d’abord séduire le joueur avant de le faire payer. Une fois conquis, ce dernier paiera des objets virtuels en fonction de son attraction au jeu et de ses objectifs d’évolution à l’intérieur du jeu.

Pour retrouver toutes les informations concernant l’étude Mobile Gaming et les études associées, cliquez-ici

Plus d’informations sur l’expertises et les événements de l’IDATE sur :

www.idate.org          www.digiworldsummit.com          www.digiworldweek.com          www.gamesummit.pro

24Mar/150

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).

connectedthingsWearables

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.

Alliances

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)

Privacy

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

23Mar/150

In 2015, the key words of the Mobile World Congress were 5G, IoT, virtualization and LTE-U : PART 1

MWC infog

As for each edition, IDATE has been Analyst partner of the Mobile World Congress. A fantastic opportunity for our analysts and experts to interview many professionals coming from their Mobile planet to Barcelona for this intense and tremendous week.

5G Concept

Even though the concept of 5G is still very much under discussion (videos from KT, Huawei presented during conferences), NGMN (next generation mobile networks) Alliance published its 5G white paper which can be seen as the mobile operators “wish list” for 5G. Nonetheless, 5G is scheduled for 2020. Early trials should arrive in 2018, with projects scheduled for the Winter Olympic games in South Korea (4G became real in 2010’s, 3G in 2000’s). Key advantages of 5G over 4G would be a much lower latency (1ms compared to 40 ms in 4G and 100 ms with 3G), the capacity to connect billions of devices, faster response that will boost services like augmented reality, self driving cars and online gaming. Huawei mentioned that 5G should reach 10 Gbps (7 minutes to download a movie with 4G, 6 s with 5G).

5G should better take into account specific requests of vertical markets (healthcare, automotive, energy, government, city management, manufacturing and public transportation) and better manage the Internet of Things.

Equipment suppliers showed first demos of 5G air interface using millimetric bands (70 GHz - Nokia) and 15 GHz (Ericsson). New air interface techniques were proposed by Huawei with the non-orthogonal access technology based on Sparse Code Multiple Access (SCMA), and Filtered-Orthogonal Frequency Division Multiplexing (F-OFDM).

With tvisuel principal idate MWC v2he 5GPPP (Public Private Partnership), Europe is trying to accelerate developments of 5G with fundings of €700 million for R&D. It is expected that the industry will invest five times this amount. According to the 5GPPP, 5G should be based upon a HetNet (heterogeneous network) supporting various radio access technologies and frequency bands ranging from sub-1 GHz bands to 100 GHz. Various traffic profiles will have to be supported:

 

•    Low speed-low energy for IoT sensors
•    High speeds for video services
•    Very low latency profile for mission critical services such as PPDR (Public Protection and Disaster Relief) and for transportation issues

Google will soon become a MVNO

Google confirmed during the MWC that the group is negotiating MVNO agreements with the US mobile operators. Light details on Google plans so far. Further information scheduled for months to come. Nova is not expected to compete directly against US MNOs. In addition, Google do not want to launch a network at scale.
The Google MVNO will only work with the Nexus6. “The focus of Google’s network could be on connecting devices other than phones, as watches, cars and other devices increasingly will include mobile connectivity features”.Mobile Identity

Different methods of identification and authentication, each suited to particular transaction types (from access to social network to official ID) ; biometric authentication as a new solution.
•    Digital identity card exists in Estonia (with digital authentication), biometric card exists in middle east and Africa (Algeria, South Africa)
•    Mobile authentication is a challenge for mobile operators, but the market is far from mass-market: demand is not ready for official ID authentication on mobile, standards are needed, as well as regulation.Mobile Id could be a leapfrog technology in emerging countries where people don’t even have identity papers, and have a mobile phone.
If mobile operators don’t manage to be positioned on this market, banks or social networks could.

Virtualization

PICTO VIRTUANetwork Function Virtualization (NFV) appeared last year during MWC and is now close to commercial implementation by mobile operators. Telefonica demonstrated a full network together with ALU and HP. It will integrate a vRAN, vCDN, vEPC and vIMS.
A first implementation of vRAN was presented by China Mobile which is collaborating with Alcatel-Lucent and Intel on Cloud-RAN, which is seen as a first step towards virtual RAN. NTT Docomo is working with NEC on virtualization of the core network (EPC).

LTE-U

LTELOGO2LTE-U technology is important and was present on many vendors’ booths. It will give free access to additional spectrum in the 5 GHz band currently used by Wifi. This will provide SDL (supplementary downlink) capability, providing extra capacity for downlink traffic, especially video. LBT (Listen Before Talk), the specific function which will allow smooth compatibility between Wifi and LTE in the 5 GHz band will be included in 3GPP Release 13 expected to be adopted in Q3 2016.
LTE and Wifi carriers can also be combined in order to provide higher throughputs but in that case, the benefits of LTE higher spectrum efficiency are not present.

 

20Mar/150

Nouveau cycle de conférences de prospective numérique sur les enjeux de l’Internet, de la télévision et des télécoms à 2025

logo DWFuture generique 2015

A l’occasion de la sortie de la nouvelle édition de son DigiWorld Yearbook, l’IDATE présente son nouveau cycle de conférences de prospective numérique sur les enjeux de l’Internet, de la télévision et des télécoms à 2025 !

La première session DigiWorld Future  se déroulera le 16 juin au Palais Brongniart, à Paris,  dans le cadre du Festival Futur en Seine en partenariat avec la Ville de Paris et Cap Digital.

A partir des analyses des experts de l’IDATE, les débats seront animés par Marjorie Paillon, Journaliste, Tech 24, Philippe Escande, Rédacteur en Chef, Le Monde et Gilles Babinet, avec les contributions exceptionnelles de :

sebastienbazin lowaxellelemaire lowMaurice Levy lowfrederic mazzella lowrichardstephaneOROUSSAT low

 

 

 

 

 

 

 

 

 

 

 

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11Feb/150

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

CHAILLOU_Valérie
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)

numberOfFTTHSubscribers-per-country-in-Europe

Source: IDATE for FTTH Council Europe

 

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

Number-of-ftth-homes-per-country-in-europe

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.

5Jan/150

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

Welcom-adress-and-global-solution

 

 

 

 

 

 

 

 

 

 

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

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15647981030_a48105f44b_z

 

Keynote : Smart Glasses

 

smart-glasses

 

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

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Disruptive innovations: one step towards 5G

michel-combes-alcatel

 

Smart City & Mobile living

smart-city-mobile-leaving

 

 

 

 

 

 

 

 

 

Seminar "TV everywhere"

tv-everywhere
alain-bensoussan

 

 

 

 

 

 

 

 

 

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

m2m-internet-of-things

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Business models: Narrowing the gap between explosive usage and limited ad revenues
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Europe on the rebound ?

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TV & facing Mobility

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>> 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.