Financing FTTH networks

Jaume Salvat

Munich, February 14th 2012

WHY WE DID IT?

1. Andorra is a saturated market

2. All telecommunications services are universal

3. Introduction of Premium TV services

4. Better and innovative services

5. Providing competitive advantage for the country.

Challenges

Financing FTTH networks

Goals & Decision

Financing FTTH networks

xDSL??

Why not xDSL?

Financing FTTH networks

What customers had?

Financing FTTH networks

DEPLOYMENT

Outside Plant:

o Nearly no public works required

o Passive infrastructure will reach all households in Andorra

o Active network equipment for 70% of households

In-building networks:

o New FO installation is be on demand

o FO mandatory for new buildings

o Not directly involved in home network installation

o Drop upon customer request only

Deployment

Financing FTTH networks

The project today

• Pilot project 2007 – beginning 2008

• Commercial offer – May 2008

• 100% coverage – May 2010

• 18.625 FTTH customers

• >35% penetration to total homes

• >50% penetration to inhabited homes.

Financing FTTH networks

CAPEX & OPEX

CAPEX Evolution

Intensive investment the last 5 years.

7 8 9 10 11

IPTV

NGN

FTTH

Financing FTTH networks

CAPEX FTTH vs xDSL

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FTTH

VDSL

Financing FTTH networks

OPEX FTTH vs xDSL

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FTTH

VDSL

Financing FTTH networks

INCREASING PENETRATION

Financing FTTH networks

Financing FTTH networks

Evolution

Financing FTTH networks

Increasing ARPU

• ARPUs increased 56%

thanks to IPTV

• Internet users: ARPUs

increased 18%

ARPU COPPER

+18%

+56%

AR

PU

FT

TH

Financing FTTH networks

An overview of Andorra Telecom's FTTH rollout20

Thank you for your attention