fttx panorama - services & positioning - broadband world forum 2013
DESCRIPTION
Worldwide FTTx overview, FTTx Access platforms, Leading FTTx players, FTTx Services and Pricing StrategiesTRANSCRIPT
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
2
Agenda
Worldwide FTTx overview
FTTx Access platforms
Leading FTTx players
FTTx Services and Pricing Strategies
IDATE, DigiWorld, DigiWorld Institute and DigiWorld Yearbook are international trademarks of IDATE
Stop by and see us… … or follow us on:
3
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
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
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
6
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 -
7
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
8
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
• 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
10
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
11
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
12
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
13
Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of our teams of specialized analysts.
Now, with the support of close to 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity:
Who are we?
• Time-tested analysis and consultancy Our expertise and client list > Consulting
• An independent observatory
Our catalogue of reports > Research
• A European forum open on the world Our annual programme > DigiWorld Institute
14
FT All our FTTx reports & databasesTx research findings on our blog
Read more about our Fixed Broadband stream: research findings & products