Www.idate.org Europe is moving on… Yves GASSOT General Director, IDATE.

www.idate.org

Europe is moving on…

Yves GASSOT

General Director, IDATE

www.idate.orgEurope is moving on…Europe is moving on… 22

Europe Is moving on…

From the TMT bubble to the telecoms crisis…

Fiber redundancy (particularly in the US)

International investment frenzy (Europe; operators and equipment suppliers)

UMTS false start (wrong schedule, overvaluing of licences, over-abundancy of licences, lack of applications development,…)



Loss of trust in telecoms for investors

Dramatic fall of stockvalues

Halt in IPO

Debt burdens + depreciation

Bankruptcies

Drop in Capex

Return the national market (Telecom Italia, BT, …), spin-offs (O2/BT)

… and consolidation



However the telecoms sector is not… in the same situation as the coalmines in the 70’s

Graphique

0

200

400

600

800

1000

1200

1400

1999 2000 2001 2002

bill

ion

US

D

telecom services telecom equipment

World Telecoms Market

So

urc

e:

IDA

TE



Of course, fixed telephony is decreasing…

fixed telephony

37%

other63%

0

40

80

120

160

200

1998 1999 2000 2001 2002 (e)

fixed telephony totalSource: IDATE



However mobiles are still a growing segment: 12% for the year 2002 in Europe

0

50

100

150

200

250

300

1998 1999 2000 2001 2002 (e)

mobile services total

mobile services

43%other57%

Source: IDATE



… the Internet segment (ISP revenues + POTS revenues + « always on » supscription) is also a very efficient growth vehicle: +50% for 2002

internet & broadband

access9%

other91%

0

200

400

600

800

1000

1998 1999 2000 2001 2002 (e)

internet & broadband access totalSource: IDATE



Beyond the tragic impacts of the telecoms crisis, we should note that :

1. The demand for communication services still exists

2. Innovation remains one of the telecom industry’s major strengths

3. The crisis is the result of teething problems in an industry which has suddenly left the comfortable cradle of the monopoly… to become the central issue of the stock market gamble

4. … and which has still to make its mutation, 20 years after the revolution made by the computing sector…



… and finally, what we propose during this conference is to discuss this transformation, with a set of questions starting with specific points moving on to more general issues:

Does Europe still have the mobile lead?

High speed: is it the next growth engine for telecom?

Do we have the correct regulation?

Is Europe ready for the rebound?

Should we forget the convergence strategy?

And finally… What is Europe’s competitive advantage?

Www.idate.org Europe is moving on… Yves GASSOT General Director, IDATE.

Documents

Transcript of Www.idate.org Europe is moving on… Yves GASSOT General Director, IDATE.