FTTx Panorama - Services & Positioning - Broadband World Forum 2013

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Worldwide panorama of FTTx rollout FTTx services & pricing strategies Roland MONTAGNE Director Telecoms Business Unit Mob : + 33 6 80 85 04 80 [email protected] Broadband World Forum 2013, Amsterdam, October 23 rd , 2013 Telecom Player & Market watch Speaker

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Worldwide FTTx overview, FTTx Access platforms, Leading FTTx players, FTTx Services and Pricing Strategies

Transcript of FTTx Panorama - Services & Positioning - Broadband World Forum 2013

Page 1: FTTx Panorama - Services & Positioning - Broadband World Forum 2013

Worldwide panorama of FTTx rolloutFTTx services & pricing strategies

Roland MONTAGNEDirector Telecoms Business UnitMob : + 33 6 80 85 04 [email protected]

Broadband World Forum 2013, Amsterdam, October 23rd, 2013

Telecom Player & Market watch

Speaker

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Agenda

Worldwide FTTx overview

FTTx Access platforms

Leading FTTx players

FTTx Services and Pricing Strategies

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IDATE FTTx Watch

• Methodology: bottom-up approach– Desk research– Direct contacts with leading players and IDATE’s partners in the

countries– Information exchange with FTTH Council Europe members

• FTTx Panoramas for MENA, LATAM & APAC Regions and Europe (+70 countries analyzed)– For each country, IDATE provides data per player for FTTH/B and

other fiber-based architectures– Each player is characterized via dedicated parameters : technical,

financial, business model, figures– Around 340 fibre projects listed in EU39

• IDATE FTTx Watch – Providing market data by country (+70 covered) and by technology– forecasts for the coming months and years– Strategic & technological analysis: Expert analysis delivered via

bimonthly insights and analysts' comments on key FTTx market issues– Five-year forecasts for FTTx: Thanks to a primary research on 150+

FTTx market players, we provide penetration and subscription data and forecasts for more than 70 countries

– Vendor market share: In-depth analysis of technological

Deliverables:– A unique, continually updated FTTx market database– In-depht marker reports– bi-Monthly insights

Rising to the challenge of deploying FTTH, copper and coax based technologies are gaining momentum

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Worldwide overview

Superfast technologies(1) represent 21% of broadband access subscriptions at the end of 2012

FTTH/B is the leading superfast broadband solution, far from FTTLA then VDSL- FTTH/B represents 69% of FTTx subscriptions at the end of 2012, compared to 20% for FTTLA +

DOCSIS 3.0 and 11% for FTTN+VDSL

Copyright © IDATE 20134

Breakdown of superfast broadband technologies, at end 2012

FTTH/B69%VDSL

11%

FTTLA20%

Source: IDATEFor definition of superfast platforms we have considered here 3 main architectures: FTTH/B, FTTN and FTTLA + DOCSIS 3.0

Source: IDATE

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Worldwide overview

But the regional breakdown is very heterogeneous FTTH/B is clearly the technology of choice in APAC whereas FTTLA is leading the

superfast broadband market in Western Europe and North America.

VDSL is a technology of choice for several European incumbents.

Latin America and Middle East countries are at the very beginning of their FTTH rollouts: they will participate to the global growth of superfast broadband more and more in the coming years.

There are still questions from large players regarding the opportunity to deploy FTTH/B or VDSL, mainly in Europe.

Several parameters are to be taken into account among which, of course, the required investment. Nevertheless FTTH/B rollouts did progress in certain European countries which is encouraging at a time when EU Telcos are seeing their margins shrinking.

Some players are betting on the future capacities of copper-based networks.

Copyright © IDATE 20135

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Source: IDATE, June 2013

Geographical panorama of FTTx access solutions

Europe, 30 million FTTx subscribers

Asia-Pacific, 70.8 million FTTx subscribers

Middle-East Africa, 0.8 million FTTx subscribers

North America, 35.4 million FTTx subscribers

Latin America, 1.3 million FTTx subscribers

World = 169.8 million subscribers

VDSL 18%

FTTH/B 53% FTTLA 29%

Copyright © IDATE 2013

Split of FTTx architectures per region, December 2012

VDSL 25%

FTTH/B 25% FTTLA 51%

VDSL -

FTTH/B 99% FTTLA 1%

VDSL -

FTTH/B 100% FTTLA -

VDSL 13%

FTTH/B 54% FTTLA 33%

Israel, 1.15 million FTTx subscribers

VDSL 100%

FTTH/B - FTTLA -

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Source: IDATE, June 2013

Part of superfast broadband technologies in total Broadband

Europe (2), 30 million FTTx subscribers

Asia-Pacific, 70.8 million FTTx subs

Middle-East Africa, 0.8 million FTTx subscribers

North America, 35.4 million FTTx subscribers

Latin America, 1.3 million FTTx subscribers

World = 169.8 million FTTx subscribers

FTTx 32%

Other Technologies 68%

FTTx 17%

Other Technologies 83%

FTTx 24%

Other Technologies 76%

FTTx 3%

Other Technologies 97%

FTTx 3%

Other Technologies 97%

Copyright © IDATE 2013

Part of FTTx architectures (1) in total Broadband by region, in December 2012

(2) Europe here means EU 39: EU 27 + in particular Norway, Switzerland, Iceland, Israel, Turkey, Ukraine and Russia.

(1) For definition of FTTx architectures we have considered here 3 main platforms : FTTH/B, FTTN and FTTLA

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China is now the leading FTTH/B country in terms of subscribers, ahead of Japan Until end 2012, Japan was the most advanced FTTH/B market in the world. The dynamism of Chinese players has led to this new situation, and, due to its demography,

China will remain the leading country in the near future. APAC countries are followed by the USA and Russia, just behind, with nearly 7.5 M FTTH/B

subscribers. FTTH/B architecture is the only one deployed in GCC countries.

VDSL technology is more deployed in Europe than elsewhere in the world, apart, of course, in the USA where AT&T has bet on that technology VDSL subscriptions will increase regularly in the coming years, as more and more European

operators are thinking about rolling out FTTN+VDSL networks. However, those deployments will concern limited areas or smaller countries in terms of

population, therefore VDSL will not overtake the two other main FTTx architectures. We can note also that VDSL is the main architecture deployed in Israel (2.2 M HP and 1.15M

subscribers).

FTTLA is the technology implemented by cablecos Mostly in the USA and in the North of Europe: thanks to FTTLA+ Docsis 3.0, cablecos can

provide up to 150 Mbps to the end users. Cablecos do not plan to expand their FTTLA coverage to larger areas than their current cable

footprint.Source: IDATE, June 2013

Leading countries per FTTx solutions at end 2012

Top 5 FTTH/B countries (Thousand subscribers)

Copyright © IDATE 2013

Top 5 VDSL countries

(Thousand subscribers)

Top 5 FTTLA countries

(Thousand subscribers)

Source: IDATE, June 2013

Source: IDATE, June 2013

China 27 400

Japan 25 500

South Korea 11 070

USA 8 600

Russia 7 417

USA 7 500

Switzerland 1 275

Germany 1 270

Belgium 1 200

Canada 1 200

USA 18 000

UK 2 176

Netherlands 1 050

Germany 1 021

Poland 800

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• 6 Asian and 4 American players are in the Top10 in the world

• Only one player involved in large FTTN+VDSL deployment among them, then two cablecos upgrading their infrastructures to FTTLA

• Those three players are present on the US market!

Top 10 worldwide players, at end 2012

World leaders, all FTTx architectures

Source: IDATE, June 2013

Copyright © IDATE 20139

8.5 M subscribersFTTLA

7.7 M subscribersFTTN+VDSL

5.42 M subscribersFTTH

4.86 M subscribersFTTLA

11.9 M subscribersFTTH/B

15 M subscribersFTTH/B

2.72 M subscribersFTTB

17.16 M subscribersFTTH/B

2.75 M subscribersFTTH/B

#4

#5

#7

#8

#3

#2

#6

#1

#9

#10

6.23 M subscribersFTTH/B

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The highest speeds are offered in Asia Pacific The first commercial 1 Gbps offer to the general public

was launched in Hong Kong.

In North America, access offers based on optical fibre (including FTTLA type) generally range between 50 and 200 Mbps. Verizon has launched a 500 Mbps offer.

In Europe, most of the ultra-fast broadband players have chosen to offer more segmented broadband offers. But in the great majority of cases, the maximum speed proposed is 100 Mbps.

Bundles are far from being the general rule In the end, whichever the region concerned, packaged

offers including Internet + telephony and/or television, rarely appear in operators' and providers' catalogues

France stands out as the country of triple play

Geography of FTTx packaged offers

Current offers landscape: Speed and Bundles

Geography of FTTx access speed ranges

Copyright © IDATE 2013

Source: IDATE, June 2013

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The marketing of packaged services based on optical fibre access is not widespread throughout the world. Three major trends are emerging in the field of commercial offers: Access services can be marketed as stand-alone Complementary services (television, fixed and/or mobile telephony) can be marketed with

Internet access, as part of dual, triple or quadruple play bundles Predefined bundles can be offered but adjusted by end users who select the services they

need (access speed, number of TV channels etc.)

Marketing FTTx access: all inclusive bundles or self service?

Copyright © IDATE 2013

  Standalone Doubleplay

Triple Play

Quadruple Play

  Internet only Internet + Telephony

Internet + TV

TV + telephony

Triple Play + Mobile

Comcast O O O O O Partnershipwith Verizon

Wireless

Free X O X X O O

HKBN X O O X O X

NTT O X X X X X

Orange X X X X O O

Telefónica Defaulttelephony

O X X O X

TeliaSonera X O X X O X

TEO O X X X O X

Verizon O O O O O No bundle but tariff

discounts

Virgin Media O O O O O O

Means of marketing services on FTTx networks

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Pricing strategies for FTTx offers vary greatly from one operator to another and from one region to another

It is in Europe and Asia-Pacific that the lowest prices are found (on average 55 to 59 EUR per month for access at 100 Mbps, but there are very strong disparities within regions

In contrast, the highest rates are unquestionably in the United States and Middle East.

FTTx access: Prices

Copyright © IDATE 2013

Price positioning of ultra-fast broadband triple play offers according to the level of speed segmentation

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