Et si une agence de voyages créée en 1975 réinventait le tourisme ? C’est en résumé l’histoire d’Infotour qui s’est reconvertie il y a près de 6 ans pour proposer entre autres des moteurs de recherche intégrés sur les sites hôtes.
Résolument tourné vers le marché français, Infotour a développé une palette de services complémentaires. Dest’Résas est un moteur de recherche donnant accès à l’internaute aux disponibilités en temps réel que ce soit pour un hôtel, un cinéma, un restaurant mais aussi pour les transports en autocar, ferroviaires etc. Cet outil va chercher dans les bases de données des professionnels et va intégrer les résultats directement sur le site sur lequel l’internaute effectue sa recherche. En bref, Dest-Résas, c’est un peu le remède anti-frustration du touriste sur internet qui rêve devant certains résultats et qui après tout un parcours du combattant s’aperçoit que ce n’est plus disponible...
Le remède anti-frustration du e-touriste !
Mais au delà de cette satisfaction, Dest-Résas, c’est aussi une réponse à l’expérience utilisateur qui ne se sentira plus perdu, baladé de site en site. En effet, le module s’adapte à l’environnement du site hébergeur, adopte sa charte graphique etc. C’est la vraie définition du mot "service" : une réponse parfaitement adaptée, un itinéraire facilité, un souci de confort de l’internaute. Si au début, la société s’est heurtée à une certaine incompréhension de la part des agences de tourisme classiques, elle a misé sur la pédagogie pour faire comprendre et accepter l’évolution du secteur. Aujourd’hui, Infotour a réussi son pari, installée depuis toujours à la Grande Motte, elle recherche les opportunités en Languedoc-Roussillon mais aussi ailleurs.
Claude Morin, un des fondateurs, nous explique aussi qu’à l’origine, la société comptait 9 collaborateurs et avaient des bureaux physiques. Aujourd’hui, le télé-travail, la sous-traitance se sont développés, les membres de l’équipe sont partout en France. Bel exemple de remise en question tant en ce qui concerne le secteur d’activités que l’entreprise qui a su évoluer vers le tourisme 2.0 !
Comment passe t’on du secteur du luxe à l’univers de la médecine ? Pourquoi quitte t’on un grand groupe international pour rejoindre une start-up de 5 personnes ? C’est Jérémy qui va répondre à ces questions sur le stand de V@si dans le village du numérique à l’occasion du DigiWorldSummit 2015.
V@si est une jeune start-up de 3 ans hébergée chez Réalis à Montpellier. Elle propose des activités physiques adaptées aux personnes handicapées et/ou souffrantes afin de favoriser leur réinsertion sociale. Le principe est le suivant : le médecin traitant prescrit certaines activités aux patients, V@si met ce dernier en contact avec des coachs sportifs proposant les prestations demandées. Cette démarche est entièrement prise en charge par les mutuelles. V@si, c’est en fait un véritable réseau social entre les médecins et les pratiquants d’activités physiques adaptées.
La genèse de l’idée
Aline Herbinet a longtemps travaillé dans les hôpitaux accueillant des enfants malades. Elle a vite réalisé que les soins coupaient ces enfants de tout lien social, elle a alors eu envie de rétablir ce contact, essentiel sur le chemin de la guérison. Et si à l’origine, V@si comptait 4 fondateurs, c’est aujourd’hui une équipe de 15 personnes, principalement des anciens élèves d’Aline qui ont voulu la suivre dans cette aventure. L’idée a été bien accueillie dans les hôpitaux et les CHR, là où les soignants sont en contact direct avec les patients, où ces derniers peuvent être sensibilisés à cette approche, car c’est le moment où ils en ressentent le besoin.
La plateforme est en phase de lancement, certains partenariats sont déjà d’actualité et d’autres se profilent. Les objectifs de la start-up sont de se développer en Europe mais aussi au Canada dans un futur proche. Et ce sont tous ces éléments qui ont donné envie à Jérémy de rejoindre V@si.
Lui, qui après son Master 2 a travaillé chez Ladurée, puis chez Pullman, de grands groupes internationaux, avait envie de changement. Il a trouvé chez V@si une entreprise dans laquelle le contact, l’aspect social, l’humain sont au coeur du quotidien.
Senior Consultant, IDATE DigiWorld
IDATE estimates the global content industries market reached 145.5 billion EUR in 2014. On a global scale, 41.2% of revenues came from dematerialised channels, nearly twice that of 2011.
A sector worth 145.5 billion EUR in 2014
• Publishing is the leading market in value, with a total of 52.3 billion EUR generated. Between 2011 and 2014, revenues in the sector decreased by 1.9%.
• The music sector started to grow again from 2012, with 3.6% growth over the 2011–2014 period and 0.9% in 2014, attaining worldwide revenues of 13.2 billion EUR in 2014.
• The video game sector saw revenues grow 29.3% between 2011 and 2014, reaching 47.7 billion EUR in 2014.
• After a period of inertia, the video market is back on a growth path. In 2014, total revenues for the sector amounted to 32.2 billion EUR, compared to 31.9 billion EUR in 2013, which translates into a 0.9% increase.
More value captured by producers and rights holders
Losses in the end market, attributable to a decrease in the unit price of content, which is not always offset by a rise in sales volume, does not necessarily imply losses for all players in the value chain.
In the book market, the share of end-market value captured by rights holders and publishers has increased by 26% in the physical value chain to 55% in the dematerialised value chain.
Nevertheless, the difference is less pronounced in the recorded music market, a 46% share from videogram sales to a 49% share from digital sales.
About the video game market, 59% of end-market revenues from title sales are captured by publishers and developers in the dematerialised value chain, nearly 20 points higher than in the physical value chain.
Finally, the biggest difference appears in the transactional video market, where 54% of total market revenues are captured by producers and rights holders, compared with only 21% in the combined segments of videogram sales and rentals.
Find out more information on "Content economics market" in our dedicated market report
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.
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:
Published in Communications & Strategies n°99
IDEI, Toulouse School of Economics
Conducted by Marc BOURREAU,
C&S: The concept of platform is sometimes used in a very broad way in the policy debates. How would you define platform/multi-sided markets? What is the difference between a one-sided and a multi-sided market?
Bruno JULLIEN: It is difficult to provide a formal definition of a platform in economics and there is no consensus on such a definition. As a start I would say that a platform is a bundle of services that are used by several economic agents in order to interact. In such situations, a side represents a particular type of users (say sellers on a B2C marketplace, or merchants dealing with a credit card). Each side's benefits depend what other sides are doing on the platform. Moreover the platform may treat the various sides in a differentiated manner. For instance some may get free services while others pay for the right to access the platform.
From a theoretical perspective, a platform is not necessarily multi-sided. To be so requires two conditions. First the organization of the platform's services involves network externalities, i.e. participation and other actions of a user affect other users of the platform. Second the platform discriminates between different types of users. One criterion sometime used to determine whether an activity is multisided or not is whether the value of the service for each user depends on the whole structure of prices or not.
In a multi-sided platform the customers need to consider interactions with other economic agents to evaluate the value of the good or service and determine their behavior. The final value of the service for the customer is not fully controlled by the platform but results from agents' interactions. By contrast, in a one-sided market, firms choose the product or service characteristics and customers' value depends only on that choice.
The difficulty with the concept is two-fold. First it covers potentially a wide range of goods and services, so that the multi-sided externalities must be significant enough to be relevant. Second, all platforms are not necessarily multi-sided as this may depend on the business model of the platform. Consider for instance retailing: a chain store is typically not a multi-sided platform but Amazon marketplace is one. The chain store decides which products to carry at which prices and then consumers interact only with the store and don't care about suppliers. By contrast, online marketplaces let buyers and sellers jointly determine the products and prices.
The literature on multi-sided markets emerged in the early 2000's (and you were one of the first authors on the topic), but it is still vibrant. What do we learn from the recent research on platforms?
The early literature was mostly focused on price theory, explaining difference between pricing in multi-sided markets and one-sided markets by emphasizing the need to coordinate users and bring all sides on board. A main contribution has been the development of concept of opportunity cost where the cost of providing the service to a user is adjusted to account for the benefits (or costs) accruing to other users. This however needs to be put at work in practice, which is part of what the literature is aiming at. The recent literature developed along several lines. The first is the application of the concept to specific industries as it has been done for instance for the Internet, search engines, ads financed media or credit cards. For instance, in the case of media, the recent literature helps us understand the evolutions in terms of business models or the implications of mergers. Along the same dimension, the research is trying to develop new operational tools for competition policy where traditional results don't apply; there has been for instance work on bundling or econometric models for empirical work and policy evaluation.
At the theory level, what I retain mostly from recent work is the importance of participation patterns of the users (exclusivity, multiple vs single affiliation, switching) in shaping the competition between platforms.
On the other side of the coin, what do we still not know? What are the key questions where more research is still necessary?
While we have made significant progress in price theory and applications, there is a lot we don't know and a large scope for future research. For the theory I think that the main issue that we need to address is that our theories are mostly static. We need to better understand the dynamics of competition between platforms. What determines the emergence of a successful platform? What is the extent of barriers to entry? What are the respective roles of history and actual merit?
I expect also research to move away from price theory into design and organization, where most competition takes place. We need to understand when and how platform decides to interfere in transactions. A recent concrete example is the issue of MFN clauses for online booking systems (Most Favored Nation: this prevents registered hotels from offering lower prices on competing websites or direct sales).
For this we need more empirical work to guide research and applications. Currently we see many data originating from a single platform, so we may expect many studies of agents' behavior on a platform. But we will need also empirical work on platform competition.
For competition/regulation policy, we need more work to propose operational decision tools to competition authorities and regulators. Basic questions such as market definition or tests for predation are still not resolved for platforms. We have difficulties evaluating the optimal market structure, as more competition may not raise welfare and efficiency. This will require developing research at the frontier between law and economics.
There is a hot policy debate today in Europe on the regulation of platforms. What is your opinion on this question? What are the potential market failures in platform markets, which would justify a regulatory intervention?
The issue is not to identify market failures, which occur when there are externalities between users, network effects and market power as is usually the case with platforms. The main question is whether there is a scope for efficient ex ante regulatory intervention. In some cases, ex ante rules or principles are desirable, for instance for privacy issues. But in general I would be cautious and favor ex post intervention for several reasons. Platforms are very heterogeneous: platforms may propose very different activities, the same activities may be proposed by very different platforms, platforms may be more or less integrated vertically. This means that it is extremely complex to define ex ante the perimeter of a regulation. Moreover, the same regulation may affect different platforms in different ways, for instance a pay platform and a free platform are not affected in the same manner by restriction on data usage. Finally, the markets where platforms operate are dynamic and innovative. Market power has to be evaluated from a dynamic competition perspective and regulation should not impede this dynamic process.
Notice that it is in the broad interest of a platform to optimize the quality of interactions between its members and correct externalities because this raises their value. The literature has put some limits to this view, but intervention should occur only for clearly identified failure. I would point out two factors that may be matter for that.
A key distinction should be between situations involving bottlenecks and others where all users can easily switch or use several platforms. A bottleneck arises when each platform enjoys the exclusive rights for the conduct of transactions with some of its users. This gives some monopoly power on these transactions and we know that competition between platforms will not resorb it. We may then want to reduce this market power. This is similar to a one-way access problem familiar to telecommunication regulators.
Second, platforms providing free services to some sides rely on a limited set of instruments to coordinate users, which may not be enough to address issues of externalities. Indeed a good coordination of the sides would require as many prices (or subsidies) as there are sides. Free platforms by nature cannot pass on to consumers the true opportunity cost, which may induce excessive usage or may distort prices charged to other sides. This may induce inefficiencies and calls for special scrutiny.
Do you think that today regulators and competition authorities take sufficiently into account the specificities of multi-sided markets (provided you think they should)?
Regulators and competition authorities are now aware of the concept and its importance in some industries. However they lack tools and knowledge to incorporate this dimension in their analysis. I think this is a reason why we don't see as many applications to cases as we would like and why they prefer to rely on more conventional analysis. Some cases are more obviously two-sided than others, the credit card cases for instance. But even if the concept is not explicitly mentioned in decisions, it is often present in the reasoning (an example is the approval of the merger of the satellite digital radio services Sirius and XM by the FCC in 2008).
In platform markets, we observe some big multi-platform players, such as Apple, Google, Amazon, or Facebook, with distinct core businesses and overlapping activities. Do you think this multi-dimensional feature of the competition affects the ways these firms compete with each other?
I am not a specialist of strategy but I think this is the case. These platforms started with very different objectives and business models. This affects their priorities and strategies in terms of pricing, choice and organization of activities. Clearly Google Shopping is organized in a very different manner than Amazon marketplace, reflecting their different competencies and services. I always thought that part of the initial difference of strategies on e-books between Amazon and Apple was due to the expertise of Amazon in the domain of cultural goods.
Bruno JULLIEN is Senior Researcher at CNRS and the Toulouse School of Economics (TSE), and a senior member at Institut d'Economie Industrielle (IDEI). He is currently Scientific Director of TSE. His interests cover industrial organization, in particular in the domain of network economics, ICT and competition policy, as well as regulation, insurance and contract theory. He is recognized as a world leading academic researcher on the economics of two-sided markets, which he contributed to develop. Bruno Jullien has published numerous articles in renowned scientific reviews such as Econometrica, Journal of Political Economy, Review of Economic Studies, RAND Journal of Economics. He is currently co-editor of Journal of Economics and Management Strategy and associate editor of Geneva Risk and Insurance Review. He is Fellow of the Econometric Society, member of the Steering Committee of Association of Competition Economics and of the Economic Advisory Group on Competition Policy of the European Commission. He is a fellow of CEPR, CESIfo and CMPO. Bruno Jullien has also been advising firms and decision makers on regulatory and competition policy issues for more than 20 years. He graduated from Ecole Polytechnique, ENSAE and EHESS, and holds a Ph.D. in economics from Harvard University. He started his career as a researcher in Paris at CEPREMAP and CREST. He was also a Professor at Ecole Polytechnique. He joined the University of Toulouse in 1996. He has been Director of the research centre GREMAQ (1997-2004) and Deputy Director of Toulouse School of Economics (2010-2011). He received the Bronze Medal of CNRS, the "Palmes Académiques", the ACE best article award and the JIE best article award.
The Communications & Strategies No. 99 "The Economics of Platform Markets - Competition or Regulation?" is available!
DigiWorld Summit 2015
IDATE will contribute to the debate at the upcoming DigiWorld Summit on 17, 18 and 19 November, in Montpellier, with:
- Fatima BARROS, Chair BEREC
- Carlo d'ASSARO BIONDO, President EMEA strategic Relationship, Google
- Bruno LASSERRE, Président de l’Autorité de la Concurrence
- Eduardo MARTINEZ RIVERO, Head of Unit « Antitrust Telecom », DG Competition, EC
- Sébastien SORIANO, Président de l’ARCEP
Information & Registration:
DigiWorld Week is an event-filled week devoted to innovation and the issues shaping the digital economy. After an inaugural edition that took place as Montpellier was being certified a French Tech city, IDATE and its partners are announcing an outstanding programme for 2015.
This initiative – which throws a spotlight on the Languedoc-Roussillon region and Montpellier Méditerranée Métropole ecosystem – has been made possible by the tremendous energy surrounding the DigiWorld Summit, IDATE’s annual international conference, now in its 37th year. “Digital First” will be the theme of this year’s edition, which runs from 17 to 19 November. But DigiWorld Week is, above all, the fruit of a wonderfully dynamic ecosystem involving start-ups and veteran market players, schools and universities, associations and local authorities… all mobilised around the potential and challenges of the digital transformation.
DigiWorld Week 2015: main events
DigiWorld Week 2015 in figures
• 9 event-filled days for industry professionals, students… and tech-lovers everywhere
• 40 events exploring multiple formats: workshops, hackathons, exhibits, master classes, digital café…
• 200 speakers from around the world, representing every facet of digital innovation
• 3,000 industry professionals expected
• … generating thousands of tweets and vast social media coverage!
Exploring the ins and outs of the digital revolution
A unique chance to further national and international debates over the core issues shaping our new digital world, and to reveal the goldmine of a region that is building its future on the extraordinary potential of its R&D centres, its start-ups, top-tier companies, clusters, public support and financing policies… and its ever-growing pool of astonishing talent!
Devoted to the many facets of digital innovation and Le French Tech, DigiWorld Week is hosted by IDATE, Europe’s economic think tank, with the support of its partners: DigiWorld Institute Members, DigiWorld Summit sponsors, the European Commission, France’s Ministry of the Economy, The Languedoc-Roussillon Region/Sud de France Développement, Montpellier Agglomération and the FrenchSouth.digital innovation cluster.
The globe’s newsmakers will be on hand in Montpellier
22cans - 5G PPP Association - Accenture - Adva Optical - AirBnB - Altice - ARCEP - ARM - AT&T - Atos Autorité de la concurrence - Awox - Banque de France - BBC Digital - BEREC - Blur Studio - Booking.com Bouygues Telecom - Capgemini - CEP-L.E.S - Ciena - CITI - Deutsche Telekom - Digixart - Direction générale des entreprises - Dontnod - eBlink - edX - Ericsson - European Commission - Eutelsat - EyeWire Féérik Games - FIRIP - France Télévisions - FTTH Council - General Electric - Gig.U - Google - Hasbro Huawei - Hub One - IBM - IndieCade - International Digital Entertainment Agency (IDEA) - IRT Systématix J.C. Decaux - La Poste - Lagardère Entertainment Digital - Legrand - LoRa Alliance - Mairie de Paris Marguerite - MediaKraft - Microsoft - Ministère de économie and des finances - Nexway - Nokia - Numericable SFR - OECD - Verizon OnCue - Optimod Lyon - Orange - Orange Business Services - Orange Labs Networks - Qosmos - Qualcomm Life - Rennes Métropole - RTL Online, RTL interactive - Ruckus Wireless Sagemcom - Schneider Electric - Scimob - SEB - Sequans communications - Serena Capital - Sigfox - SNCF SNJV - STMicroelectronics - TDF - Telefónica – Telenor - The conference board - Ubisoft - Vlocity Wikipedia - Youku Tudou …
> Get the latest news and the full programme at: www.digiworldweek.com
Senior Consultant, IDATE
The World OTT communication market will reach 22 Billion EUR in 2019
This report provides an in-depth analysis of the OTT communications market, both through figures and forecasts of market value (global, EU28, APAC and US), and through strategic analyses of the major players concerned.
The VoIP market (such as Skype), the IP messaging market (such as WhatsApp), and a portion of the social networking advertising market (such as Facebook) make up the OTT communication market, and the dynamics of each of these market segments are examined.
The various business models that have appeared, and the recent trends of acquisitions in the market, are also analysed.
One of the key analyses in this report is the comparison with the telco communication market. The myth of 'OTTs taking away telco revenues' is scrutinised, together with the effectiveness of the responses available to telcos.
OTT communication has very little impact when compared to the telco market
Actually, OTT only accounts for 1.8% of communication market in 2015… and despite its growth, will still only account for 3.3% in 2019.
Meanwhile, the telco communication market will see slight decline with CAGR from 2015 to 2019 of -0.4%. At least, total telco communication vs OTT communication revenues, 2012 to 2019 (billion EUR). For that matter, OTT communication services have not significantly adversely impacted the Telcos.
There exist greater factors such as the economic climate, internal competition and regulation that significantly affect the telco market values more than OTTs:
• The French example: competition between telcos was already intense before arrival of OTTs, minimising their impacts
• The Spanish example: telco communication revenues were already in decline due to economic recession, and OTTs served to accelerate the decline through cheaper alternatives
• Voice and SMS are no longer a cash cow for the developed countries
Telcos are obliged to invest in their networks, whereas OTTs are not
• The values attached to voice and SMS, which used to be fully captured by the traditional telcos, potentially being diverted to OTT providers
• Further, OTTs use the telco data network, yet OTTs are not required to invest in this network
Find out more information on OTT communication services market in our dedicated market report
At the 37th annual DigiWorld Summit, in partnership with Business France and La French Tech, IDATE will be hosting the first annual DigiWorld Awards, recognising digital industry start-ups created by French entrepreneurs outside of France.
Why identify and reward start-ups created outside of France?
‘We got the idea for these awards when planning the international programme for the DigiWorld Summit. We found that we were meeting more and more start-ups created by French teams who were operating in all corners of the globe,’ explains IDATE’s Deputy CEO, Jean-Dominique Séval.
This is a perfect illustration of the multifarious talents of “French Tech” – a term used to refer to all those who work for or with French start-ups in France and abroad. Entrepreneurs, first and foremost, but also investors, engineers, designers, developers, conglomerates, associations, media companies, public operators, R&D centres… all working to further start-ups’ growth and international reach. French Tech is a shared initiative of which Business France is a founding member, instigated by the French government but sustained and developed by industry stakeholders.
As part of the globalisation action plan for French Tech in 2015, the Government decided to support the emergence of a French Tech Hub in major cities around the world that represent key centres for development for French Tech start-ups. The goal is to “stimulate a collective mobilisation” and to bring the various public actors (Business France, consulates, chambers of commerce, local authorities…) together under a single umbrella with a network of entrepreneurs that have a solid footing in overseas markets (start-ups, conglomerates, investors, engineers, designers and developers), which can serve as mentors for young start-ups wanting to develop their business in that market, and as ambassadors for French Tech with local decision-makers.
The DigiWorld Awards therefore provide a unique opportunity to identify the many entrepreneurs who have created a start-up abroad, and to recognise those who have been successful overseas, perhaps before coming to France!
And the nominees for 2015 are…
The start-ups eligible to be nominated had to satisfy the following criteria:
• Be a company created outside of France by at least one French person;
• With no offices or operations in France;
• And have a digital tech industry business as its main activity: equipment and devices, networks and telecoms, Internet services and applications (BtoC, BtoB…), M2M, IoT…
The Jury made an initial selection from among the roughly forty applications received, choosing three start-ups from each region. A Special Jury Prize will be awarded to an overseas start-up born of the Montpellier Métropole Méditerranée and Région Languedoc-Roussillon development ecosystem.
The winners in each category will receive their trophy at a ceremony held during the DigiWorld Summit plenary session on 19 November 2015, with special guest Axelle Lemaire, France’s Secretary of State for Digital Affairs.
Prizes and rewards
Each of the prizes will be awarded by the event’s sponsors – Accenture, Capgemini, Ericsson and Orange – which will each provide the winning start-ups with access to their international Innovation resources.
• The winning start-ups will be invited, thanks to our partner Air France, to the awards ceremony being held during the DigiWorld Summit plenary session on 19 November 2015.
• The winners will be added to Wproject (www.wproject.fr), the key listing and promotional platform for French entrepreneurs working abroad.
Accenture will leverage its Accelerated Growth Partnership (AGP) teams, offering personalised support aligned to the start-up’s growth challenges.
AGP Accenture teams have created a unique methodology to evaluate start-ups’ growth challenges and provide Accenture’s expertise in the three following areas:
• Commercial development support: drafting a business case, creating a “use case book”, C-Level clients presentation,
• Start-up’s registration in the Accenture Open Innovation Catalogue, joint sales prospecting…
• Injection of resource: providing relevant technical support, integration, industrialized testing, applications development
• Offering Accenture proprietary assets: pre-developed connectors, Accenture Tech Labs innovations, pricing estimators, marketing formats
The prize sponsored by Capgemini Technology Services, a Capgemini group subsidiary, will allow one of the award-winning start-ups to enjoy global exposure and advice from its teams that are part of a worldwide network.
Applied Innovation Exchange: Capgemini provides support through concrete, exchange-based innovation, in collaboration with its customers in dedicated locations: the Applied Innovation Exchange. Capgemini delivers practical solutions using its SMACT (Social, Mobile, Analytics, Cloud and Things) toolkit, to improve its innovation capabilities in all areas. This global network of close to 40 innovation labs provides a testing ground and expertise in every domain, to help further research, ideas and prototyping through Design Thinking. Capgemini thus provides a gateway to an exclusive ecosystem of mature, emerging digital technologies. This Applied Innovation Exchange experience, which is dedicated to technological innovation in all sectors, has forged a fine reputation for enabling start-ups to grow, thanks to a wealth of exchanges during sessions with its customers.
The prize sponsored by Ericsson will allow one of the award-winning start-ups to benefit from the Ericsson group’s support system for start-ups, and particularly Ericsson Garage. But other, potentially complementary approaches are also possible, depending on the project, its level of maturity and its geographical location. In particular, we are able to provide advice and support from Ericsson experts, preferential access to our angel funding for start-ups and incubation possibilities, drawing on our global presence in more than 180 countries. The Garage is an incubator for innovations related to our core business areas. The goal is to work as a start-up and develop the first prototypes that can serve as the basis for future commercial solutions. Ericsson already has two Garages in Europe: one in Kista, near Stockholm, and one in Budapest. A Virtual Garage solution has also been deployed, to enable remote access.
The Orange prize will allow one of the award-winning start-ups to benefit from one or several start-up support resources, depending on the project’s stage of development and requirements. These may include mentoring from Orange international experts, preferred access to our financial vehicles, training in and access to Orange APIs, or market tests/user focus groups thanks to our community of testers.
At Orange, we know that creating a new company is not easy. That is why we support start-ups at a crucial stage in their development, to help them grow and take their business to the next stage. To this end, we have been developing the international network of Orange Fab accelerators since 2013, which now cover four continents. It is a win-win programme with a dual objective: accelerate innovation for Orange customers and accelerate the growth of start-ups by allowing them to access the market more quickly. Start-ups benefit from the advice of international experts in marketing, business models, user-centred design, technology etc. They also receive valuable advice from mentors and experienced entrepreneurs with a background in digital innovation. In certain countries, eligible start-ups also receive financial support, as well as access to dedicated or shared workspaces.
2015 DigiWorld Awards jury members
> Find complete details at: http://www.digiworldsummit.com/awards/
Since 1977, IDATE’s teams of specialists have earned a global reputation for independent, high quality analysis of digital industry markets, through three closely linked areas of activity:
• DigiWorld Institute: a European think-tank for members, policy-makers and players of the digital transformation
• DigiWorld Research: a global observatory of digital markets and innovation
• IDATE Consulting: bespoke market research and consulting solutions
> For more information: www.idate.org
About Business France
Business France is the national agency supporting the international development of the French economy, responsible for fostering export growth by French businesses, as well as promoting and facilitating international investment in France. It promotes France’s companies, business image and nationwide attractiveness as an investment location, and also runs the V.I.E international internship program.
Founded on 1 January 2015, from a merger between UBIFRANCE and the Invest in France Agency, Business France has a staff of 1,500 in France and in 70 countries throughout the world, who work with a network of public- and private-sector partners.
For further information, please visit: www.businessfrance.fr
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Europe kicks off its review of the regulatory framework for electronic communications: issues and challenges
CEO, IDATE DigiWorld
The European Commission has officially begun a consultation on the new regulatory framework adapted to changes in the electronic communications sector
This review process, which is a regular occurrence in the life of European directives, is taking an unusual turn for at least five reasons:
1. It follows a less than glorious period during which the attractive idea of accelerating developments to achieve a single market for telecommunications led the Commission and its partners, the EU Parliament and Council, to devote many long months to endless negotiations over net neutrality and roaming in Europe. Ultimately, the Council approved a compromise-laden agreement, under terms that should also enable Parliament to bring its own Connected Continent negotiations to a close.
2. This review also comes at the end of a period of steadily decreasing revenues for telcos in Europe. IDATE forecasts that, even by 2020, the sector will not be back to 2008 levels. If we appear to be seeing the first hints of a recovery, it is still a slightly downhill slope for virtually every major European market. We could argue that this is due to disinflation and digital productivity factors, and point out, quite rightly, that it is margins that count. Margins are indeed getting back on track, but it would be difficult to argue that their decline over the past several years affected only dividends, and not investments as well. The top five European telcos’ combined CapEx on mobile systems in 2013 was only just over 50% of what carriers in the United States spent that year, on the same size population.
3. These problems, coupled with the restrictions inherent in deploying ultra-fast fixed and mobile networks, resulted in a series of primarily in-market mobile/mobile and fixed/mobile mergers and acquisitions, under financially favourable conditions. These deals did relieve competitive pressure to some degree, should helpto put an end to crumbling margins and should bolster operators’ spending. To date, they have not accelerated the creation of a single European market by triggering a wave of cross-border M&A deals, as the previous Commission had more or less explicitly hoped. We can nevertheless point out that, over the past several months, the sector’s regulation has been established largely during merger deals, and more as a result of decisions from the DG Competition and national competition authorities, than from the work of DG Connect and national regulatory authorities (NRA). It is worth mentioning that this has often been the case in the United States as well: one recent example being the approval given to AT&T’s takeover of DirecTV that was contingent on the carrier stepping up its fixe ultra-fast broadband network rollouts.
4. The previous review, and especially several EU recommendations, focused on working out the details of making the transition from regulation centred around accessing legacy copper networks, to regulation adapted to accessing new infrastructures. This issue is becoming more and more central, and is clearly the core concern of the current review. First, we are far from having achieved the objectives of the Digital Agenda, e.g. >30Mbps access for all Europeans by 2020, and a connection speed of 100Mbps and up for more than 50% of them. So the emphasis needs to be on provisions that stimulate competition, but also those that give market players incentives to invest. Second, the tremendous diversity in market configurations and technical options mean that, in terms of methodology, any regulatory guidelines that Europe adopts on ultra-fast broadband can only apply in a very general way. There are countries, such as Belgium, Denmark and the Netherlands, for instance, where competition comes down to a duopoly of cable versus the incumbent carrier’s superfast access networks, with all of the complex wholesale access issues this entails (on VDSL with vectoring, on cable systems, and in relation to new entrants’ investments in the ADSL unbundling market). Then there are other countries that have managed to increase connection speeds in part by investing in upgrades to the incumbent carrier’s network, while maintaining equal access rules for these infrastructures. Such is the case in the UK where, even though pushed to do so by BT’s rivals that were accusing the telco of a margin squeeze, a review conducted by Ofcom led the regulator to reconsider the principles of a managerial separation for Openreach. There is also the relatively singular case of France – even if there are some overlaps with the situation in Spain and Portugal – where the focus is on symmetrical regulation which, at least in the country’s largest cities, limits access to the indoor portion of FTTH networks, and promotes a sort of distribution of coverage initiatives depending on the location. Another singularity of the situation in France is the very high percentage of FTTH coverage achieved thanks to public-private partnerships. We should add that the review will not only have to take this patchwork of national circumstances into consideration, but also the emergence of very high-speed cellular networks with the launch of LTE Advanced and the first forays into 5G.
5. Lastly, the context has also been changed by the accelerated pace of the digital transformation in every vertical sector, and the growing influence of game changers such as mobility, the cloud, big data, etc. This new environment goes beyond the more or less clearly defined topic of level playing field, which had been confined to complaints over the imbalance in regulatory restrictions imposed on telcos and OTT. We can sense that regulatory imperatives are torn, on the one hand, between the desire to continue to restrain telecom markets that can be governed by ex ante regulation once effective competition is in place and, on the other, a tendency to want to apply this approach to all of the stakeholders along the value chain.
Clearly, there are many reasons to be interested in the regulatory review process that is underway. Talk will also focus on significant market power (SMP) and the three criteria used to test it, on harmonising spectrum policies, OTT-telco relations… But the process is proving more open and more complex than the last time around.
IDATE will contribute to the debate in various ways, through its publications (*), its market reports and its series of annual events. Let me take this opportunity to mention the outstanding panel of guests that will be on hand to discuss these very issues at the upcoming DigiWorld Summit on 17, 18 and 19 November, in Montpellier
• Fatima BARROS, Chair BEREC
• Sébastien SORIANO, Président de l’ARCEP
• Eduardo MARTINEZ RIVERO, Head of Unit « Antitrust Telecom », DG Competition, EC
• Bruno LASSERRE, Président de l’Autorité de la Concurrence.
Hope to see you there!
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
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)
Source: IDATE, World telecom services markets and players, June 2015
Top 15 telecom operators based on turnover in 2014 (billion EUR)
Source: IDATE, World telecom services markets and players, June 2015
Find out more information on World Telecom Market services in our dedicated market report