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annual Economic Report 2011

driving the digital future

European Telecommunications Network Operator s’ Association

January 2012


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Contents 1. Introduction

4

2. Market trends

6

3. Revenue and service trends

12

4. Investment trends

14

5. Next generation access networks (NGA)

18

6. New broadband services

20

7. Ranking in European and World Top companies

22

What is ETNO ETNO has been the voice of Europe’s telecommunications network operators since 1992. ETNO’s 40 member companies and 10 observers* from Europe and beyond represent a significant part of total ICT activity in Europe. They account for an aggregate annual turnover of more than ₏600 billion and employ over 1.6 million people. ETNO companies are the main drivers of broadband and are committed to its continual growth in Europe. ETNO members also hold new entrant positions outside their national markets. ETNO brings together the main investors in innovative and high-quality e-communications platforms and services, representing 70% of total sector investment. ETNO strongly contributes to shaping a favourable regulatory and commercial environment for its members to continue to deploy innovative and high quality services and platforms for the benefit of European consumers and businesses.

* December 2011

ETNO

Second Annual Economic Report


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European Telecommunications Network Operators’ Association

ETNO represents 40 operators in 35 countries*, far beyond the boundaries of the European Union.

ETNO members’ presence in EU and neighbouring markets

ICELAND

ETNO members’ total revenue from European operations amounted in 2010 to approximately € 215 billion.

FINLAND

SWEDEN

49% of the turnover originates from fixed line operations, and 44% from mobile services.

NORWAY ESTONIA

LATVIA

LITHUANIA

DENMARK

1 member 2 members

IRELAND

3 members

POLAND

UNITED KINGDOM NETHERLANDS

4 members & more

BELGIUM LUXEMBOURG

CZECH REP.

GERMANY

SLOVAKIA

AUSTRIA

LIECHTENSTEIN

ROMANIA

HUNGARY

FRANCE

SWITZERLAND SLOVENIA

CROATIA BOSNIA-HERZEGOVINA

BULGARIA

ITALY

F.Y.R.O.M

(Former Yugoslav Republic of Macedonia)

ALBANIA

TURKEY

PORTUGAL

GREECE

SPAIN

CYPRUS

MALTA

* ALBtelecom (Albania), Belgacom, BH Telecom (Bosnia and Herzegovina), Telefonica O2 Czech Republic, Croatian Telecom, Cyprus Telecommunications Authority (CYTA), Deutsche Telekom, Entreprise des Postes et Télécommunications Luxembourg, eircom, Elisa Communications Corporation (Finland), Elion (Estonia), Finnet Group (Finland), France Telecom, Go (Malta), Invitel (Hungary), Koninklijke KPN, Lattelekom (Latvia), Makedonski Telekom (F.Y.R of Macedonia), Magyar Telekom (Hungary), OTE (Greece), Portugal Telecom, Romtelecom (Romania), Síminn (Iceland Telecom Ltd.), Slovak Telekom, Societatea Nationala de Radiocomunicatii (SNR-Romania), Swisscom, TDC, TDF (France), Telecom Italia, Telecom Liechtenstein, Telefónica, Telekom Austria, Telekom Slovenije, Telekomunikacja Polska, Telenor (Norway), TeliaSonera (Sweden-Finland), TEO (Lithuania), Türk Telekomünikasyon (Turkey), Vivacom (Bulgaria). Second Annual Economic Report

ETNO


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1. Introduction Introduction by Luigi Gambardella ETNO Executive Board Chair I am delighted to introduce to you the 2011 yearly economic report of ETNO. Latest revenue data demonstrate that EU telecoms sector revenue continued to experience a decline for the second year in a row, although at a slower pace, despite a slight recovery of the economy as a whole. This demonstrates that our sector is faced with structural changes. While revenues from traditional fixed and mobile voice products are declining, EU telco’s have to develop new business models that will generate new revenue streams. Today one out of five customers subscribes to a managed VoIP service, while video downloads and search engines remain the main usage of Internet. Data show that operators remain committed to investing despite reduced revenue. Even if investment has slightly increased compared to 2009, overall, investment has now fallen below the 2005 level.

ETNO

Second Annual Economic Report

ETNO members continue to drive broadband deployment. Latest coverage figures show that 2013 targets of the EU Digital Agenda are well on track. As for 2020 objectives, figures clearly show that they will be reached only through a mix of technologies and platforms, fixed and mobile. Achieving these goals will require combined efforts of all. Creating the best conditions for investment and reassuring the markets in today’s difficult times must remain the key priorities. The continued increase in usage of social networking sites and other Over the Top Applications confirm the need for new models of cooperation. Policy for our sector needs to be flexible in order to enable operators to adapt to rapidly changing realities and let new business models emerge from the markets.

Luigi Gambardella ETNO Executive Board Chair


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Introduction by Didier Pouillot, IDATE

Consulting & Research

For the past six years, this report has highlighted the main trends in the telecoms markets in Europe and in particular the role played by ETNO members. Since last year, this overview has been enriched with further data on the industry’s trends to form the ETNO's Yearly Economic Report.

In this context, ETNO members' activity was impacted, notably in their domestic markets where they face increased competition in mobile and broadband services and pricing constraints in regulated wholesale services. However, they still account for 72.5% of the industry revenues. Their tangible investments in Europe accounted for € 28.3 billion, slightly increasing (+4% year-overyear) and representing on average just over 13% of their regional revenues. The increase comes mainly from expenditure in mobile networks (from 11.4 billion € to € 12.2 billion).

In 2010, the European telecoms services market declined for the second time in a row as a consequence of the overall economic downturn and of structural industry reshaping. The average 1.4% revenue decrease, to € 275 billion, varied by segments and by countries but there were only few exceptions (modest growth was recorded in 4 countries) even if some improvement could be seen when compared with 2008-2009 market trends. Gaps between western and eastern countries in terms of growth have narrowed over the recent period.

Today, telcos are investing heavily in NGA networks: ETNO members in particular are deploying FTTx networks. At the end of 2010, they have built 37.6 million FTTx homes passed in Europe, a 50%+ increase compared to deployments at the end of 2009, one out of 4 is based on FTTH/B architecture (+33% FFTH/B homes passed by ETNO members year-over-year). In this race, they are faced with competition from alternative telcos but more significantly from cable operators and from diverse newcomers (utilities, local authorities …).

Regarding activities, revenue from mobile services which now accounts for more than half of total revenue, was up by 0.4% on average while revenue from fixed services decreased by 3.2%. In both mobile and fixed services sub-segments, data services were particularly dynamic: they could compensate for the decrease of voice services in the mobile area but not in fixed services as the development of broadband connections also leads to a shift from traditional services (switched telephony notably) to cheaper applications over IP (VoIP, IM, email…).

All this data illustrate the important role ETNO members continue to play in the context of a structural mutation of the telecoms industry as a whole and in a still difficult economic environment. Beyond their performance and relative resilience to the crisis, telecoms also have a key role to sustain the overall economy. This should encourage operators to commit to pursuing their innovation and investment efforts.

Didier Pouillot Head of the Telecom Economics Practice, IDATE

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2.  m a r k e t t r e n d s Main developments on Europe's telecoms markets With a total revenue of € 274.9 billion in 2010, the European telecoms service market decreased by 1.4% despite slow economic recovery (+ 3.5% for current GDP in the region) showing that structural rather than cyclical changes are shaping the sector. Furthermore, Europe's share of the global telecoms market has been declining regularly over recent years, from 33% in 2004 to just over 27% in 2010. Telcos' investments in Europe were up 2.3% in 2010 to € 44.5 billion but remained low compared with spending during the years before 2009.

Estimates 2011Europe: Revenues still under pressure • Overall sector revenue growth: -2% • ETNO members: -4% Investments increasing despite revenue decline: • 5% increase in overall investments

ETNO

Second Annual Economic Report

Source : IDATE


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In 2010, telecoms markets have been growing only in a handful of European countries, the same countries for which revenues increased in 2009 (Finland, France, Norway and Turkey). Revenues were flat in two other countries, the Netherlands and the United Kingdom but throughout the rest of Europe, telecoms markets remained under pressure, with only slight improvement in most countries and worsening conditions in a few of them, starting with Greece. Fixed telephony revenues were down 8% in average with the number of PSTN lines declining by more than 5% (-18.4% from 2005). More and more subscribers switched to VoIP using their broadband lines for telephony service; at the end of 2010, one out of 5 phone subscribers used managed VoIP (53.5 million VoIP subscribers in countries within the ETNO-perimeter, not taking into account those users of OTT solutions such as Skype). The fixed broadband subscriber base was

up 6.3% with penetration rates ranging from less than 10% (10 subscribers per 100 inhabitants) in Turkey to close to 40% in Denmark, the Netherlands and Switzerland: The European average (ETNOperimeter) was 24.4% at the end of 2010 and broadband revenues increased by 6.3% during the year, accounting for 13.6% of total telecom revenues (7% in 2005). However, the bulk of telcos revenues came from mobile services: with €142.3 billion in 2010, they accounted for 52% of the total revenue and their share has increased over time even if growth has dramatically slowed down in recent years (+0.5% in 2010, -1.3% in 2009). Dynamics in mobile data revenues (+21.5%) compensate for the decline in mobile voice. The European cellular subscriber base can not grow much more as penetration has now reached a very high level in most countries (123% in average for ETNO perimeter).

Overall figures Fixed telephony

Total telecoms services revenues in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia)

150

127,8

| € billion

Data & Internet

143,6

140.0

133,7

Mobile services

142,3

141,7

120

96,3

90,3

90

60

86,1

81,6

61,5

59,3

56,0

51,9

47.1

75,4

69,6

62,9

Source : IDATE

30

0

Total

2005

2006

2007

2008

2009

2010

t

t

t

t

t

t

271,2

275,9

282,1

284,5

278,7

274,9

* Average Revenue Per User

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ETNO


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2.  m a r k e t t r e n d s

6 6 5 5 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6

-2,5 0,9 1 1,6 1,7 2,4 2,9

1,9 1,7 2 2,2 4,5 0,4

2005-2006 2005-2006

2006-2007 2006-2007

-2,2 -2,3 -2,4 -2,1 -0,8 -1,7

-1,2 -1,4 -1,7 -1,4

0,5 0,3 0,6 0,9 1,8

2007-2008 2007-2008

-0,4

Source : IDATE

Telecoms market revenue growth in EU compared to US/Asia & overall economic growth | %

2,3

2008-2009 2008-2009

2009-2010 2009-2010

6 6 5 5 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6

-3 -3,2 -3,1 -3 -1,7 -4,2 5 5,2 5,5 6

6 2,6

2005-2006 2005-2006

EU-5

ETNO

Source : IDATE

Current GDP growth | %

Second Annual Economic Report

EU-15

5,1 5,3 5,8 5,9 4,9 3,6

2,4 2,5 3 3,5 2,2 0,3

2006-2007 2006-2007

2007-2008 2007-2008

EU-27

EU (ETNO perimeter)

2,9 3

2008-2009 2008-2009

USA

3 3,5 3,8 4

2009-2010 2009-2010

Advanced Asia


9

EU Telecoms market growth 2009-2010 compared to IT services & TV services (etno perimeter) | % 8 7

TV services

6 5 3 2 1 0

t -1,4%

t -0,7%

Telecom services

IT services

u +7,1% Source : IDATE

4

-1 -2

Investment in EU telecoms sector compared to US/Asia | % CAPEX growth of the EU telecoms sector vs. CAPEX in the USA and in advanced Asia

8

advan

4

USA

2 0

4.5 5.6 6.9

7

-3

6.8

-4.3 -0.9 0.4 2.3 -6.6 -7

-3

-2 -2.3 -1 -4.1 -0.5

-7.9 -7.5 -8.7 -5.7 -8.2 3.2

6.5 4.7 3.7 2.3

7

-2.5

Source : IDATE

6

EU (ET

-2

EU-27

-4

EU-15

-6 EU-5

-8 -10 2005-2006

EU-5

2006-2007

EU-15

EU-27

2007-2008

EU (ETNO perimeter)

2008-2009

USA

2009-2010

Advanced Asia

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ETNO


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2.  m a r k e t t r e n d s

Fixed access lines Mobile subscribers

Access to telecoms services in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia)

Internet subscribers

| million lines/subscribers

800

731,9

722,7

708,1

700

of which broadband subscribers

662,8 596,6

600

537,0

500 400 261,7

250,7

200 100

2005

2006

2008

(incl. Turkey, excl. Russia, Ukraine & Georgia)

150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0

145,4

2009

2010

| percent of penetration per population

122,9%

121,7%

119,7% 112,5% 101,7% 92,0%

45,5%

44,6%

Second Annual Economic Report

2006

40,7%

mobile density

2008

internet density

36,3% 26,1%

25,6%

24,4%

23,0%

21,0%

18,6%

2007

38,6% 24,5%

23,3%

14,9%

11,0%

fixed teledensity

42,5% 21,2%

19,0%

2005

ETNO

155,5

136,8

124,5

2007

Teledensities in Europe

216,3 151,8

145,2

109,6

87,2

64,1

229,0

137,5

124,1

110,8

0

241,1

Source : IDATE

265,6

2009

2010

of which broadband density

Source : IDATE

300


11

ETNO members Split of ETNO members’ turnover | € billion

12 NMS*

EU-27

ETNO perimeter

outside EU-27

175.4

17.2

192.6

215.2

22,6

of which fixed

88.4

5.3

93.7

106.6

12,7

of which mobile

76.1

11.7

87.8

95.3

7,4

of which other (non core. corporate. etc.)

10.9

0.2

11.1

13.3

2,2

2010 European turnover (bn €)

Source : IDATE

EU-15

250 215.2

200

192.6 175.4

150 100

Source : IDATE

50 22.6

17.2

0 EU-15

12 NMS

EU-27

ETNO perimeter

outside EU-27

Aggregated revenue of ETNO members

ETNO members’ employees

(EU + non EU)

(EU + non EU)

| € billion

share of total sector revenue = 72.5 %

ETNO N members e r : 281,5 8

Total a sector t revenue v e : 388,5 8

| thousand

share of total sector employment = 65.2 %

t – 1,2 %

t – 0,9 %

N members e e : 805,6 0 ETNO

Total a sector t employment m y t : 1128,4 2

t – 0,5 %

t – 0,9 %

Source : IDATE

0

50 100 150 200 250 300 350 400

Source : IDATE

0

200

400

600

800

1000 1200

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ETNO


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3.  r e v e n u e a n d s e rv i c e t r e n d s Broadband and mobile segments just compensate for the decline in fixed telephony After the deterioration of the European telecoms markets in 2009, recovery seems to be underway, but results posted in 2010 were still weakened by the severity of the economic crisis. All segments were impacted with an accelerated decline in activities already concerned with structural downturn (fixed telephony) and a slowdown of growth was seen in other services (mobile, broadband). There are clearly 3 areas with contrasted dynamics: • Fixed telephony revenues are declining rapidly (-2% in 2010 and –6.3% over the last 5 years) and now account for only 49% of the total retail telecoms market.

• The broadband and ultra-fast broadband segments are the major growth drivers in Europe’s telecom services market, fuelled by a growing subscriber base (+7.3% to 146 millions at the end of 2010 in ETNO countries).

• Growth in Europe’s mobile market was very low in 2010: only 1%. The combination of a smaller decrease for mobile voice services (though users continued to switch to fixed IP and other mobile solutions such as SMS) and a slightly higher increase for mobile data services put things back on track after the recession in 2009. But most of the progress can be attributed to non-EU countries.

Overall figures Fixed telephony vs mobile telephony take up growth + take up of VoIP services in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia) 800 662.8

700 600

| million

708.1

722.7

731.9

241.1

229.0

216.3

mobile subscribers

596.6 537.0

500 400 300

265.6

261.7

250.7

analog fixed access lines

200 100

6.5

13.8

24.1

34.2

44.7

53.5

2005

2006

2007

2008

2009

2010

0

ETNO

Second Annual Economic Report

VoIP connections Source : IDATE


13

ETNO members

Total retail revenues

Retail services revenues in Europe | € billion 200

199,1

198,3 101,7

189,9 103,3

o/w

Fixed services

o/w

Mobile services

184,1 97,5

93,6

92,4

90,6

150

100 96,7

95,8

Source : IDATE

50

0 2007

+0,4%

2008

- 4,6%

2009

- 3%

2010

Second Annual Economic Report

ETNO


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4.  i n v e s t m e n t t r e n d s ETNO members accounting for about two thirds of investment in networks and services Investments in wireline networks in Europe amounted to € 24 billion, increasing by 2.3% in 2010 compared to 2009 (with ETNO members still accounting for 64% of this expenditure) but remained below pre-crisis levels. The number of FTTx homes passed increased to 79.2 million at the end of 2010, of which 20.7 million were FTTH/B homes passed (+22% compared to the end of 2009) with ETNO accounting for 44% of this total (47% when considering FTTx including VDSL and FTTLA). The number of FTTH/B subscribers reached 3.9 million at the end of 2010, a 39%-growth over one year, showing that operators are mainly focused on leveraging their investments (i.e. acquiring – or retaining – subscribers in the areas where homes

ETNO

Second Annual Economic Report

are already equipped) rather than investing in new areas: the penetration ratio (subscribers as a % of homes passed) increased from 16.3% at the beginning of the year to 18.6% at the end. Investments in mobile networks represented 46% of the total CAPEX in Europe in 2010 or € 20.4 billion, a 2% increase compared to 2009 as network operators need increasingly more capacity to meet customer demand for mobile data. ETNO members accounted for nearly 60% of this expenditure.


15

Overall figures Total sector investment for 2010 ETNO members' CAPEX (ETNO perimeter) and share of total sector CAPEX

| € billion

Share of ETNO members = 63.6 % Total sector CAPEX

50 40

ETNO members’ CAPEX

44.5

30

+ 2.3 %*

28.3

20

+ 4%*

10

Source : IDATE

0 *2009 -2010

Investment in fixed vs mobile segments Telcos' tangible CAPEX (ETNO perimeter)

| € billion

35 30

30.8

30.0

28.8

30.5 28.3

27,2

12.2

8.2 8.0

16.1

8.6 7.6

0

2005

2006

ETNO members operators

2007 other operators

2008 fixed

2009

Source : IDATE

11.4 15.8

8.2 7.3

17.8 7.7

16.2

16.3

15.6

8.0

7.9 7.5

6.3

5

12.7

13.2

13.2 7.4

16.1

10

15.8

15.5

13.7

17.6

15

16.8

20

12.7

25

2010

mobile

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4.  i n v e s t m e n t t r e n d s ETNO members Aggregated investment by ETNO members in Europe ETNO members' tangible CAPEX in Europe (ETNO perimeter)

| € billion

35 30

2.6 3.9 28.2

25

30.8

3.0

24.3

20

30.5

3.7 27.6

3.2

2.8 2.8 25.5

27.2

2.8 24.0

23.9

28.3

22.7

21.2

15

Source : IDATE

10 5 0

2007 European

EU-15

2008 European

12 NMS

EU-27

2009 European

outside EU-27

2010 European

ETNO perimeter

Share of revenue devoted to CAPEX in 2010

ETNO

| percent

EU-15

12 NMS

EU-27

ETNO perimeter

outside EU-27

Tangible CAPEX/turnover

12.9%

16.5%

13.2%

13.1%

12.3%

fixed

14.6%

25.8%

15.2%

15.1%

13.8%

mobile

12.8%

12.5%

12.8%

12.8%

13.2%

Second Annual Economic Report

Source : IDATE

Part of turnover devoted to investment (ETNO members)


17

5.  b r oa d ba n d Broadband take up continues to boom with a progressive switch to NGA Broadband penetration in Europe continued to increase in the recent period to 24.2% at the end of 2010 (24.2 broadband subscribers per 100 inhabitants), with a subscriber base of 146 millions (132.9 millions in EU-27). Although fixed broadband coverage is now well advanced in Europe, with ADSL available to 95% of population in average, take up still varies widely according to countries. At the end of 2010, penetration was close to 40% in the Netherlands, Denmark and Switzerland while it was below the 10%-mark in Turkey. Generally speaking, take up is higher in Western countries (30% in average) than in Central and Eastern European countries (15%). It is also higher in Nordic countries (Scandinavia) and in Benelux countries.

ADSL remains the prominent broadband access technology supporting more than 3 connections out of 4. Cable modem is second but at a lower level compared to ADSL (15% of broadband connections) as coverage is far less. Finally, ultra-fast broadband is gaining ground: with close to 11 million FTTx connections at the end of 2010, accounting for just over 8% of the total at the end of 2010 (4.7% at the end of 2009).

Fixed vs mobile broadband Fixed and mobile broadband subscribers in EU-27 | thousand subscribers

Overall figures

250

Broadband penetration per technology

200

Structure of the European fixed broadband market (EU-27)

150

| thousands connections

100

203.726 160.295 132.852 100,725

End 2010 99,854.4

Source : IDATE

Source : IDATE

0

123.762

75.165

50

44.127

19,057.7

53,625.5

113,242

80,502 59,692

13,940.2

113.751

21.741

2005

Total fixed broadband connections in 2010 = 132,852.3 of which : ADSL

2006

2007

2008

2009

2010

3G subscribers Fixed broadband subscribers

of which ADSL retailed by incumbent cable modem other technologies* (FTTx, LAN, FBWA, satellite…)

* VDSL and cable/ DOCSIS 3.0 are accounted for in the FTTx category Second Annual Economic Report

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5  n ga ETNO members to drive NGA deployments Data on broadband networks deployment show that the Digital Agenda targets for 2013 are well on track. As regards next generation access broadband, data confirm the leading role of ETNO members and the importance of a mix of technologies and platforms in order to achieve the 2020 targets of the Digital Agenda. The total number of FTTH/B homes passed reached 20.7 millions in Europe (79.2 million FTTx homes passed including VDSL, FTTLA notably) at the end of 2010, with 3.9 million subscribers (10 million FTTx subscribers).

Data on broadband networks deployment show that the Digital Agenda targets for 2013 are well on track. As regards, next generation access broadband, data confirm the leading role of ETNO members and the importance of a mix of technologies and platforms in order to achieve the 2020 targets of the Digital Agenda. There have been close to 250 FTTH/B rollouts in Europe on scales that vary from only a few dozen buildings to several million homes passed. Though until now incumbent carriers account for only part of those deployments (representing less than 20% of homes passed with fibre in Europe, 44% for ETNO members including subsidiaries acting as competitive operators outside their domestic markets), they are the ones with the greatest growth potential. Virtually all of Europe's incumbent carriers are either involved in FTTH/B rollouts, are gearing up to it or are in the planning stages announcing multi-billion Euro investments. Furthermore, some of them are greatly involved in VDSL projects in their domestic markets (Deutsche Telekom with 10 million homes passed at the end of 2010; Belgacom, 3.3 million, Swisscom and Turk Telekom, 3 million each, Telekom Austria, 1.5 million). In 2010, FTTH/B and FTTx deployments by ETNO members have increased by 33% and 55%, representing the biggest growth.

ETNO

Second Annual Economic Report


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Overall figures

Broadband coverage at end 2010

NGA deployment in Europe |units

D.A. 2013

share ETNO

BE

5 769.0

57.2%

DK

973.5

33,9%

DE

23 242.0

43.0%

IE

887.9

36.1%

EL

na

na

ES

5 327.6

98.7%

FR

6 092.3

11.5%

IT

2 943.0

96.8%

LU

216.0

100.0%

NL

2 403.0

46.7%

AT

3 327.5

46.4%

PT

4.759.0

21.0%

FI

596.9

92,1%

SE

1 520.0

52.6%

UK

4 625.0

0.0%

BU

1 000.0

0.0%

CZ

360.0

0.0%

CY

na

na

EE

325.0

50.8%

HU

1 821.7

45.1%

LT

1 059.0

53.8%

LV

370.5

83.7%

MT

na

na

PL

525.4

79.1%

RO

440.0

0.0%

SI

576.0

23.6%

SK

810.0

84.0%

CR

273.3

93.6%

NW

399.0

na

CH

5 249.0

61.3%

TU

3 580.0

83.8%

ADSL (1)

digital agenda 2020

VDSL (2)

FTTLA (2)

FTTH/B (2)

Austria

98%

41.2%

46.7%

3.5%

Belgium

100%

68.8%

51.4%

0.1%

Bulgaria

81%

0.0%

0.0%

35.2%

Croatia

90%

11.9%

0.0%

2.9%

Cyprus

97%

na

na

na

Czech Republic

92%

0.0%

0.0%

5.1%

Denmark

100%

3.5%

0.0%

30.8%

Estonia

94%

1.5%

26.1%

25.4%

Source : IDATE for ouncil Europe

FTTx homes passed (000s)

Finland

96%

na

na

23.2%

France

100%

0.0%

0.0%

20.9%

Germany

97%

24.8%

31.4%

1.5%

Greece

92%

0.0%

0.0%

na

Hungary

98%

0.0%

39.9%

5.9%

Iceland

95%

na

na

na

Ireland

96%

21.3%

36.7%

1.2%

Italy

96%

1.6%

0.0%

10.1%

Latvia

89%

0.0%

0.0%

36.1%

Lithuania

89%

0.0%

0.0%

81.8%

Luxembourg

100%

78.1%

0.0%

20.5%

Malta

99%

na

na

na

Netherlands

99%

22.4%

0.0%

9.9%

Norway

97%

0.0%

0.0%

18.0%

Poland

77%

0.6%

na

0.7%

Portugal

99%

0.0%

79.3%

38.6%

Romania

82%

0.0%

na

na

Slovakia

83%

0.0%

0.0%

na 37.7%

Slovenia

92%

1.9%

30.4%

Spain

99%

0.0%

28.7%

2.5%

Sweden

98%

na

0.0%

32.3%

Switzerland

97%

85.3%

56.9%

7.1%

na

19.2%

na

3.7%

Total EU-15

100% 98%

15.3% 12.6%

49.8% 22.3%

1.1% 8.8%

Total EU-27

95%

10.2%

18.9%

8.7%

Turkey UK

Source : IDATE for FTTH Council Europe

FTTx deployments and share of ETNO members per country

(1) as a % of population (2) home passed as a % of households

Main technologies/ network architecture models Homes passed at end 2010

Total EU

| million

ETNO members

% ETNO members

FTTH/B

20.7

9.2

44.2%

FTTx* (incl. VDSL, FTTLA, LAN…)

79.2

37.6

47.4%

Source : IDATE

NGA deployment (Homes passed at end 200)

*All cable/DOCSIS 3.0 deployments are taken into account in the FTTx category Second Annual Economic Report

ETNO


20

6  n e w b r oa d ba n d s e rv i c e s Over the top services and applications continue to drive consumers usage of Internet Four major usages should shape the internet future: • Online search is by far the most commonly used service, involving 78% of Internet users worldwide in 2010 and rising to 82% in 2015. Derived services (mapping, directory search, etc.) are also very commonly used.

• Video consumption has grown strongly, particularly due to videos shared on sites like YouTube. This use also includes premium videos (VoD and catch-up TV). Globally, about three-quarters of Internet users watch online videos. • Social networks have also experienced considerable growth: currently, two-thirds of Internet users are registered with a social network. • Lastly, e-commerce is more difficult to translate into practice, since it usually entails online payment. However, this use will continue to grow until it involves nearly half of Internet users in 2015. Other Web services are also very well developed in terms of users (email, access to non-merchant services such as Wikipedia, online banking, government services, etc.), but they currently represent a very small part of Internet revenues, and this situation is unlikely to change.

Overall figures Proportion of Internet users searching online by country, in 2010 and 2015 | %

2010 2015

100 80

91%

96%

94%

89%

94%

95% 83% 73%

60

86% 76%

40 20 0

France

UK

Source: IDATE, in "World Internet Services Market", June 2011

ETNO

Second Annual Economic Report

Germany

Italy

Spain


21

Use of online video services by country, in 2010 and 2015 | % of Internet users

2010 2015

100 80

84%

88,7%

86,7%

83%

78%

82,4%

83,7%

88,0%

85%

89,3%

60 40 20 0

France

UK

Germany

Italy

Spain

Source: IDATE, in "World Internet Services Market", June 2011

Use of social networks by country, in 2010 and 2015 | % of Internet users

2010 2015

80 60 40

72,6%

65,9% 58,6%

53,2%

68,8%

66,8% 55,5%

53,9% 46,8% 37,8%

20 0

France

UK

Germany

Italy

Spain

Source: IDATE, in "World Internet Services Market", June 2011

Proportion of Internet users shopping online by country, in 2010 and 2015 | % of Internet users

2010 2015

80 79%

76% 60

61%

69%

67%

74%

40 20

22%

17% 0

France

UK

Germany

Italy

27%

32%

Spain

Source: IDATE, in "World Internet Services Market", June 2011

Second Annual Economic Report

ETNO


22

7.  r a n k i n g i n e u r o p e a n

&

wo r l d c o m pa n i e s

Top 40 global telecoms operators

ETNO

2010 sales (€ million)

Company

Country

1

AT&T

USA

93,831

2

NTT

Japan

88,639

3

Verizon

USA

80,457

4

Deutsche Telekom

Germany

62,421

5

Telefónica

Spain

60,740

6

China Mobile

China

54,115

7

Vodafone

UK

53,534

8

France Télécom

France

45,503

9

América Movil

Mexico

36,322

10

KDDI

Japan

29,542

11

Telecom Italia

Italy

27,571

12

Comcast

USA

27,000

13

Softbank

Japan

25,845

14

Sprint Nextel

USA

24,585

15

China Telecom

China

24,520

16

BT

UK

23,423

17

China Unicom

China

19,104

18

Telstra

Australia

17,186

19

Time Warner Cable

USA

14,245

20

KT

South Korea

13,932

21

KPN

Netherlands

13,324

22

BCE

Canada

13,243

23

Tele Norte Leste

Brazil

12,652

24

SFR

France

12,454

25

Telenor

Norway

11,848

26

MTN

South Africa

11,827

27

TeliaSonera

Sweden

11,165

28

STC

Saudi Arabia

10,427

29

SK Telecom

South Korea

10,081

30

SingTel

Singapore

10,006

31

Bharti Airtel

India

9,819

32

Rogers

Canada

8,931

33

Swisscom

Switzerland

8,679

34

Vimpelcom

Russia

7,937

35

Hutchison Whampoa

HK

7,442

36

Telus

Canada

7,167

37

Qwest

USA

7,000

38

Rostelecom

Russia

6,856

39

Liberty Global

USA

6,808

40

Belgacom

Belgium

6,603

Second Annual Economic Report

Source : IDATE

Rank


23

Top 20 European telecoms operators 2009 sales (€ million)

Company

Country

1

Deutsche Telekom

Germany

62,421

2

Telefónica

Spain

60,740

3

Vodafone

UK

53,534

4

France Télécom

France

45,503

5

Telecom Italia

Italy

27,571

6

BT

UK

23,423

7

KPN

Netherlands

13,324

8

SFR

France

12,454

9

Telenor

Norway

11,848

10

TeliaSonera

Sweden

11,165

11

Swisscom

Switzerland

8,679

12

Belgacom

Belgium

6,603

13

Wind

Italy

5,898

14

Bouygues Telecom

France

5,636

15

Turk Telekom

Turkey

5,452

16

Telekom Austria

Austria

4,651

17

Virgin Media

UK

4,522

18

Tele2

Sweden

4,208

19

Portugal Telecom

Portugal

3,742

20

TDC

Denmark

3,513

Source : IDATE

Rank

Further information: • ALBtelecom (Albania) www.albtelecom.al • Belgacom (Belgium) www.belgacom.com • • BH Telecom (Bosnia and Herzegovina) www.bhtelecom.ba • Croatian Telecom (Croatia) www.t.ht.hr • • Cyprus Telecommunications Authority (Cyprus) www.cyta.com.cy • Deutsche Telekom (Germany) www.telekom3.de • • eircom (Ireland) www.eircom.ie • Elion (Estonia) www.elion.ee • Elisa Communications Corporation (Finland) www.elisa.com • • Entreprise des Postes et Télécommunications Luxembourg www.pt.lu • Finnet Group (Finland) www.finnet.fi • • GO (Malta) www.go.com • Koninklijke KPN (The Netherlands) www.kpn.com • Lattelecom (Latvia) www.Lattelecom.lv • • Magyar Telekom (Hungary) www.magyartelekom.hu • Makedonski Telekom (F.Y.R. of Macedonia) www.telekom.mk • • Orange (France) www.orange.com OTE (Greece) www.ote.gr • Portugal Telecom (Portugal) www.telecom.pt • • RomTelecom (Romania) www.romtelecom.ro • Síminn (Iceland) www.simi.is • Slovak Telekom (Slovakia) www.slovaktelekom.sk • • Societatea Nationala de Radiocomunicatii (Romania) www.radiocom.ro • Swisscom (Switzerland) www.swisscom.com • • TDC (Denmark) www.tdc.com • TDF (France) www.tdf.fr • Telecom Italia (Italy) www.telecomitalia.it • • Telecom Liechtenstein www.telecom.li • Telefónica (Spain) www.telefónica.com • Telefónica O2 (Czech Republic) www.cz.o2.com • • Telekom Austria (Austria) www.telekom.at • Telekom Slovenije (Slovenia) www.telekom.si • • Telekomunikacja Polska (Poland) www.telekomunikacja.pl • Telenor (Norway) www.telenor.com • • TeliaSonera (Sweden – Finland) www.teliasonera.com • Teo Lt (Lithuania) www.teo.lt • • Türk Telekom (Turkey) www.turktelekom.com.tr •VIVACOM (Bulgaria) www.vivacom.bg •

Second Annual Economic Report

ETNO


ETNO Members:

ALBtelecom (Albania)

Elion Enterprises Ltd. (Estonia)

OTE (Greece)

TDF (France)

Telenor (Norway)

Belgacom (Belgium)

Entreprise des Postes et Télécommunications (Luxembourg)

Portugal Telecom (Portugal)

Telecom Italia (Italy)

Telekom Slovenije (Slovenia)

BH Telecom (Bosnia and Herzegovina)

Finnet Group (Finland)

Societatea Nationala de Radiocomunicatii (Romania)

Telecom Liechtenstein (Liechtenstein)

TeliaSonera (Sweden-Finland)

Cyprus Telecommunications Authority (Cyprus)

Orange (France)

RomTelecom (Romania)

Telefónica (Spain)

Teo (Lithuania)

T-Group*

GO (Malta)

Síminn (Iceland Telecom Ltd.)

Telefónica O2 (Czech Republic)

Türk Telekomünikasyon (Turkey)

Net (Croatia) eircom (Ireland)

Koninklijke KPN (The Netherlands)

Elisa Corporation (Finland)

Lattelecom (Latvia)

Swisscom (Switzerland)

TDC (Denmark)

Telekom Austria (Austria)

Telekomunikacja Polska (Poland)

VIVACOM (Bulgaria)

* T-Group companies who are members of ETNO: Deutsche Telekom, Hrvastki Telekom, Magyar Telekom, Makedonski Telekom and Slovak Telekom,

ETNO Observers:

ETNO a.i.s.b.l. Avenue Louise 54 - 1050 Brussels, Belgium - Tel: (32) 2 219 32 42 - Fax: (32) 2 219 64 12 - eMail: etno@etno.be - www.etno.eu

ETNO Annual Economic Report 2011  
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