Fibre to the Home: Taking your life to new horizons!

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1 Fibre to the Home: Taking your life to new horizons! Eric Festraets, Member of the Board FTTH Council Europe NGAN Workshop - Trento, 11 February 2011

2 FTTH Council Europe Photo by Nicolo Baravalle

3 FTTH Council Europe Our Vision: A sustainable future enabled by Fibre to the Home Our Mission To accelerate FTTH adoption through information and promotion in order to enhance the quality of life, contribute to a better environment and increased competitiveness Organisation Founded in 2004, non-profit industry organisation More than 150 member companies

4 FTTH Conference February 2011, Milan, Italy

5 FTTH Conference 2011 Main take-aways of the sessions Most attended FTTH-related conference in the world (3000 registrations) Italian Ministry of Economical Development : Let s build the network of networks The public environment should give the market a hand Carlota Perez (Professor Cambridge University): We are half way through the 5 th industrial revolution We move to the Golden Age with the Internet as utility Neelie Kroes (VP European Commission Digital Agenda) The European Telecom Framework is set - NRA s should line up We need a Digital Single Market with price control and consistency

6 Europe in the slow lane? Photo by Nicolo Baravalle

7 FTTH Global panorama end-2010 Total subscribers 4.2 M 8.8 M 3.9 M 45 M 0.3 M and FTTH continues to grow

8 FTTH Global Ranking end 2010

9 FTTH European Ranking end 2010

10 FTTH European Ranking end 2010 Highest progressions (>1%) in the European Ranking during 2H2010 Latvia Portugal Lithuania Slovenia Russia Norway Turkey +4.4% +2.2% +2% +1.8% +1.6% +1.6% +1.26% Source: IDATE for FTTH Council Europe, February 2011 Note: FTTH/FTTB definitions by the Global FTTH Councils

11 FTTH in Europe - end 2010 > 3.9 million FTTH/B subscribers (+ 4.2 million in Russia) Source: IDATE for FTTH Council Europe, February 2011 Note: FTTH/FTTB definitions by the Global FTTH Councils > 22.3 million Homes Passed (1) ( million in Russia) Average penetration rate : 17,5% Growth rates 2H2010 (excluding Russia) +18% FTTH/B Subscribers (vs 19% 1H2010) +23% FTTH/B Homes Passed (vs +5% 1H2010) Expanding FTTH/B adoption is still an issue for players (1) Our figures have already been processed to avoid overestimating homes passed when one home is passed by several operators in some countries.

12 Countries with more than 200,000 subscribers Market with still a huge potential Stable market, waiting for further deployments New entrant, dynamic player 0 Russia Sweden France Italy Lithuania Norway Netherlands Slovakia Turkey Source: FTTH European Ranking, IDATE for FTTH Council Europe, February 2011 Note: FTTH/FTTB definitions by the Global FTTH Councils December 2008 December 2009 December 2010

13 FTTH market players 3 main categories involved in FTTH/B deployments : Municipalities & Utilities More numerous Local deployments Alternative operators / MSOs Most dynamic National/local deployments European incumbents Challenged on BB National deployments 8% of total FTTH/B Homes Passed at end % of total FTTH/B Homes Passed at end % of total FTTH/B Homes Passed at end 2010

14 FTTH Technologies In December 2010, the main architecture deployed is still FTTB Main technology today is Ethernet, though PON is growing MDUs are still the principal target for fibre deployments in Europe Main architecture deployed (homes passed segmentation) Dec 2010 June 2010 Dec 09 FTTH 37% 34% 33% FTTB 63% 66% 67% Main technology deployed (homes passed segmentation) Dec 2010 June 2010 Dec 09 PON 27% 26% 24% Ethernet 73% 74% 76% Dwellings deployed (homes passed segmentation) Dec 2010 June 2010 Dec 2009 MDU 77% 76% 75% SDU 23% 24% 25%

15 Main challenges for FTTH Do consumers and enterprises understand what fibre brings? Especially in Europe: low adoption rate! - At mid 2010: Japan at 39%, USA at 34% - Europe at end 2010: 17.5%... France: 8%!! What about the complexity of FTTH projects? Dong Energy (Danish Power Utility) resold its FTTH activity to TDC Is co-investment the key for large scale national roll-out? Announcements by main players in Italy, Switzerland, France One objective: covering non dense areas (1) subscribers/homes Passed

16 FTTH in ITALY - December 2010 update s Italy one of the main FTTH players in Europe? 2.5 million homes passed 348K subscribers (13.7% of HP) he penetration rate is not really progressing Falling in FTTH ranking (Nr 21 in June 2010, nr 13 in Dec 2007) Fibre in Italy Wind-Fastweb-Vodafone 15 cities (20M people) by 2015 eversing the trend? Some signs in the market TI plans 138 cities deployed by 2018 Mix of FTTH and FTTC Pilot in Collina Fleming (Roma) MoU Signed by >20 operators

17 What next? Photo by Nicolo Baravalle

18 European Region FTTH Forecast Connected Households, 000s Source: Heavy Reading for FTTH Council Europe, February 2011 Note: Households connected directly to fibre (FTTH) and apartments connected via basement fibre termination (FTTB)

19 Europe in Context: the Race to Fibre Maturity Country Japan Korea China Taiwan Australia India USA Canada Brazil Russia France Germany Italy UK Spain Sweden Netherlands Portugal Switzerland Denmark EUROPEAN UNION After 2020 Source: Heavy Reading for FTTH Council Europe, February 2011 European Commission Digital Agenda: 50% of European households connected to 100 Mbps by 2020

20 Why FTTH? Photo by Nicolo Baravalle

21 FTTH for an enhanced experience

22 FTTH is a service enabler FTTH allows access to enhanced content & services: Real speed Download of 6.5 Gbyte DVD-film: 10 Mbit/s DSL: 1.44 hours 100 Mbit/s FTTH: 8.6 min + = Symmetry INTERACTIVITY Upload of 300 holiday-photos (700 Mbyte): 1 Mbit/s Upstream: 92 minutes 10 Mbit/s Upstream: 9 minutes 100 Mbit/s Upstream: 56 seconds FTTH improves the way people live and work

23 FTTH for a better quality of life eentertainment elearning Teleworking ehealth egovernment Web 2.0 ebusiness ehome Societal Environmental

24 FTTH for a better quality of life Study by Ovum in Sweden for FTTH Council Europe Study by Yankee Group in Bulgaria for FTTH Council Europe FTTH enables users to benefit from real broadband applications, content and services FTTH-users enable new services f.i. teleworking, e-learning, etc. FTTH users have higher degree of satisfaction (stickyness) FTTH has the highest impact in rural areas Study by PriceWaterhouseCoopers/Ecobilan : Using FTTH and FTTH services can save up to CO² equivalent of driving a car for 4,600 km per year for every household!

25 FTTH is a key economic driver

26 FTTH is a key economic driver FTTH is a critical driver for the knowledge economy Deployment of FTTH creates jobs New services create GDP growth, not only from ICT industry (entertainment industry etc.) FTTH creates business opportunities & competitiveness Operators: increased ARPU (30%!), lower churn-rate, OPEX savings Businesses: new ways of working, reduced travel & office rental costs, better time management, more innovation, better competitiveness Regions/Municipalities: retain and attract more businesses & investment, offer cost-efficient services to the community, increase local competitiveness

27 Conclusions FTTH improves the quality of life FTTH is a key economic driver FTTH contributes to a better environment With FTTH, let s build a sustainable future!

28 FTTH Conference Feb. - 1 March 2012, Munich, Germany

29 Thank you for your attention!

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