annual Economic Report 2011
driving the digital future January 2012
European Telecommunications Network Operators’ Association 2
Contents
1. Introduction 4 2. Market trends 6 3. Revenue and service trends 12 4. Investment trends 14 5. Next generation access networks (NGA) 18 6. New broadband services 20 7. Ranking in European and World Top companies 22
What is ETNO
ETNO has been the voice of Europe’s telecommunications network operators since 1992.
ETNO’s 40 member companies and 10 observers* from Europe and beyond represent a significant part of total ICT activity in Europe. They account for an aggregate annual turnover of more than €600 billion and employ over 1.6 million people. ETNO companies are the main drivers of broadband and are committed to its continual growth in Europe.
ETNO members also hold new entrant positions outside their national markets. ETNO brings together the main investors in innovative and high-quality e-communications platforms and services, representing 70% of total sector investment.
ETNO strongly contributes to shaping a favourable regulatory and commercial environment for its members to continue to deploy innovative and high quality services and platforms for the benefit of European consumers and businesses.
* December 2011
ETNO Second Annual Economic Report 3 European Telecommunications Network Operators’ Association
ETNO represents 40 operators in 35 countries*, ETNO members’ far beyond the presence in EU boundaries of the and neighbouring European Union. ICELAND markets ETNO members’ total revenue from
FINLAND European operations amounted in 2010 to approximately SWEDEN € 215 billion.
49% of the turnover NORWAY originates from fixed ESTONIA line operations, and 44% from mobile LATVIA services.
LITHUANIA DENMARK
1 member IRELAND 2 members
POLAND UNITED KINGDOM 3 members NETHERLANDS 4 members & more BELGIUM
CZECH REP. LUXEMBOURG GERMANY SLOVAKIA
LIECHTENSTEIN AUSTRIA ROMANIA HUNGARY FRANCE SWITZERLAND SLOVENIA CROATIA
BOSNIA-HERZEGOVINA
BULGARIA
ITALY F.Y.R.O.M (Former Yugoslav Republic of Macedonia)
ALBANIA
PORTUGAL TURKEY SPAIN GREECE
CYPRUS
MALTA
* ALBtelecom (Albania), Belgacom, BH Telecom (Bosnia and Herzegovina), Telefonica O2 Czech Republic, Croatian Telecom, Cyprus Telecommunications Authority (CYTA), Deutsche Telekom, Entreprise des Postes et Télécommunications Luxembourg, eircom, Elisa Communications Corporation (Finland), Elion (Estonia), Finnet Group (Finland), France Telecom, Go (Malta), Invitel (Hungary), Koninklijke KPN, Lattelekom (Latvia), Makedonski Telekom (F.Y.R of Macedonia), Magyar Telekom (Hungary), OTE (Greece), Portugal Telecom, Romtelecom (Romania), Síminn (Iceland Telecom Ltd.), Slovak Telekom, Societatea Nationala de Radiocomunicatii (SNR-Romania), Swisscom, TDC, TDF (France), Telecom Italia, Telecom Liechtenstein, Telefónica, Telekom Austria, Telekom Slovenije, Telekomunikacja Polska, Telenor (Norway), TeliaSonera (Sweden-Finland), TEO (Lithuania), Türk Telekomünikasyon (Turkey), Vivacom (Bulgaria).
Second Annual Economic Report ETNO 4
1 . Introduction
Introduction by Luigi Gambardella ETNO Executive Board Chair
I am delighted to introduce to you ETNO members continue to drive broadband the 2011 yearly economic report deployment. Latest coverage figures show of ETNO. Latest revenue data that 2013 targets of the EU Digital Agenda are demonstrate that EU telecoms sector well on track. As for 2020 objectives, figures revenue continued to experience a clearly show that they will be reached only decline for the second year in a row, although through a mix of technologies and platforms, at a slower pace, despite a slight recovery of fixed and mobile. Achieving these goals will the economy as a whole. require combined efforts of all. Creating the best conditions for investment and reassuring This demonstrates that our sector is faced the markets in today’s difficult times must with structural changes. While revenues from remain the key priorities. traditional fixed and mobile voice products are declining, EU telco’s have to develop The continued increase in usage of social new business models that will generate new networking sites and other Over the Top revenue streams. Applications confirm the need for new models of cooperation. Today one out of five customers subscribes to a managed VoIP service, while video Policy for our sector needs to be flexible in downloads and search engines remain the order to enable operators to adapt to rapidly main usage of Internet. changing realities and let new business models emerge from the markets. Data show that operators remain committed to investing despite reduced revenue. Even if investment has slightly increased compared Luigi Gambardella to 2009, overall, investment has now fallen ETNO Executive Board Chair below the 2005 level.
ETNO Second Annual Economic Report 5
Introduction by Didier Pouillot, IDATE Consulting & Research
For the past six In this context, ETNO members' activity was years, this report has impacted, notably in their domestic markets highlighted the main where they face increased competition in mobile trends in the telecoms and broadband services and pricing constraints markets in Europe in regulated wholesale services. However, they still and in particular the account for 72.5% of the industry revenues. Their role played by ETNO tangible investments in Europe accounted for members. Since last € 28.3 billion, slightly increasing (+4% year-over- year, this overview has year) and representing on average just over 13% been enriched with of their regional revenues. The increase comes further data on the industry’s trends to form the mainly from expenditure in mobile networks (from ETNO's Yearly Economic Report. 11.4 billion € to € 12.2 billion).
In 2010, the European telecoms services market Today, telcos are investing heavily in NGA declined for the second time in a row as a networks: ETNO members in particular are consequence of the overall economic downturn deploying FTTx networks. At the end of 2010, and of structural industry reshaping. The average they have built 37.6 million FTTx homes passed 1.4% revenue decrease, to € 275 billion, varied by in Europe, a 50%+ increase compared to segments and by countries but there were only deployments at the end of 2009, one out of 4 few exceptions (modest growth was recorded is based on FTTH/B architecture (+33% FFTH/B in 4 countries) even if some improvement could homes passed by ETNO members year-over-year). be seen when compared with 2008-2009 market In this race, they are faced with competition from trends. Gaps between western and eastern alternative telcos but more significantly from countries in terms of growth have narrowed over cable operators and from diverse newcomers the recent period. (utilities, local authorities …).
Regarding activities, revenue from mobile services All this data illustrate the important role ETNO which now accounts for more than half of total members continue to play in the context of a revenue, was up by 0.4% on average while structural mutation of the telecoms industry revenue from fixed services decreased by 3.2%. as a whole and in a still difficult economic In both mobile and fixed services sub-segments, environment. Beyond their performance and data services were particularly dynamic: they relative resilience to the crisis, telecoms also could compensate for the decrease of voice have a key role to sustain the overall economy. services in the mobile area but not in fixed This should encourage operators to commit to services as the development of broadband pursuing their innovation and investment efforts. connections also leads to a shift from traditional services (switched telephony notably) to cheaper applications over IP (VoIP, IM, email…). Didier Pouillot Head of the Telecom Economics Practice, IDATE
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2 . market trends
Main developments on Europe's telecoms markets
With a total revenue of € 274.9 billion in 2010, the European telecoms service market decreased by 1.4% despite slow economic recovery (+ 3.5% for current GDP in the region) showing that structural rather than cyclical changes are shaping the sector. Furthermore, Europe's share of the global telecoms market has been declining regularly over recent years, from 33% in 2004 to just over 27% in 2010. Telcos' investments in Europe were up 2.3% in 2010 to € 44.5 billion but remained low compared with spending during the years before 2009.
Estimates 2011Europe: Revenues still under pressure • Overall sector revenue growth: -2% • ETNO members: -4% Investments increasing despite revenue decline: • 5% increase in overall investments
Source : IDATE
ETNO Second Annual Economic Report 7
In 2010, telecoms markets have been growing up 6.3% with penetration rates ranging from less only in a handful of European countries, the same than 10% (10 subscribers per 100 inhabitants) in countries for which revenues increased in 2009 Turkey to close to 40% in Denmark, the Netherlands (Finland, France, Norway and Turkey). Revenues and Switzerland: The European average (ETNO- were flat in two other countries, the Netherlands perimeter) was 24.4% at the end of 2010 and and the United Kingdom but throughout the rest broadband revenues increased by 6.3% during of Europe, telecoms markets remained under the year, accounting for 13.6% of total telecom pressure, with only slight improvement in most revenues (7% in 2005). countries and worsening conditions in a few of them, starting with Greece. However, the bulk of telcos revenues came from mobile services: with €142.3 billion in 2010, they Fixed telephony revenues were down 8% in accounted for 52% of the total revenue and their average with the number of PSTN lines declining share has increased over time even if growth has by more than 5% (-18.4% from 2005). More and dramatically slowed down in recent years (+0.5% more subscribers switched to VoIP using their in 2010, -1.3% in 2009). Dynamics in mobile data broadband lines for telephony service; at the end revenues (+21.5%) compensate for the decline of 2010, one out of 5 phone subscribers used in mobile voice. The European cellular subscriber managed VoIP (53.5 million VoIP subscribers in base can not grow much more as penetration has countries within the ETNO-perimeter, not taking now reached a very high level in most countries into account those users of OTT solutions such as (123% in average for ETNO perimeter). Skype). The fixed broadband subscriber base was
Overall figures Fixed telephony Total telecoms services revenues in Europe Mobile services (incl. Turkey, excl. Russia, Ukraine & Georgia) | € billion Data & Internet
150 140.0 143,6 141,7 142,3 133,7 127,8 120
96,3 90,3 86,1 90 81,6 75,4 69,6 61,5 62,9 56,0 59,3 60 51,9 47.1
30 E IDAT
0 : Source 2005 2006 2007 2008 2009 2010 t t t t t t Total 271,2 275,9 282,1 284,5 278,7 274,9
* Average Revenue Per User Second Annual Economic Report ETNO 8
2 . market trends
Telecoms market revenue growth in EU compared to US/Asia & overall economic growth | %
6 6 5 5 4 4 3 3 2 2 E IDAT 1 1 -2,5 -2,2-2,3-2,4-2,1-0,8-1,7 -1,2-1,4-1,7-1,4 -0,4 0 : Source 0 0,9 1 1,6 1,7 2,4 2,9 1,9 1,7 2 2,2 4,5 0,4 0,5 0,3 0,6 0,9 1,8 2,3 -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Current GDP growth | %
6 6 5 5 4 4 3 3 2 2 1 E IDAT 1 0 -3 -3,2-3,1 -3 -1,7-4,2 0 : Source -1 5 5,2 5,5 6 6 2,6 5,1 5,3 5,8 5,9 4,9 3,6 2,4 2,5 3 3,5 2,2 0,3 2,9 3 3 3,5 3,8 4 -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
EU-5 EU-15 EU-27 EU (ETNO perimeter) USA Advanced Asia
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EU Telecoms market growth 2009-2010 compared to IT services & TV services (etno perimeter) | %
8 7 6 TV services 5 4 t t u 3 -1,4% -0,7% +7,1% 2
Telecom E IDAT 1 services IT services
0 : Source -1 -2
Investment in EU telecoms sector compared to US/Asia | % CAPEX growth of the EU telecoms sector vs. CAPEX in the USA and in advanced Asia
8
6 advanced Asia
4 USA E IDAT 2 EU (ETNO perimeter) 4.5 5.6 6.9 7 -3 6.8 -4.3 -0.9 0.4 2.3 -6.6 -7 -3 -2 -2.3 -1 -4.1 -0.5 -7.9 -7.5 -8.7 -5.7 -8.2 3.2 6.5 4.7 3.7 2.3 7 -2.5 : Source 0
-2 EU-27
-4 EU-15 -6 EU-5 -8
-10
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
EU-5 EU-15 EU-27 EU (ETNO perimeter) USA Advanced Asia
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2 . market trends
Fixed access lines Mobile subscribers Access to telecoms services in Europe Internet subscribers of which broadband (incl. Turkey, excl. Russia, Ukraine & Georgia) | million lines/subscribers subscribers
800 722,7 731,9 708,1 700 662,8 596,6 600 537,0
500
400
265,6 261,7 300 250,7 241,1 229,0 216,3
155,5 200 137,5 145,2 151,8 110,8 124,1 136,8 145,4 E IDAT 100 124,5 87,2 109,6 64,1 0 : Source 2005 2006 2007 2008 2009 2010
Teledensities in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia) | percent of penetration per population
150 140 130 122,9% 119,7% 121,7% 120 112,5% 110 101,7% 100 92,0% 90 80 70 60 50 45,5% 44,6% 42,5% 40,7% 40 38,6% 36,3% 30 24,5% 25,6% 26,1% 21,2% 23,3%
19,0% E IDAT 20 23,0% 24,4% 18,6% 21,0% 10 14,9% 11,0% 0 : Source 2005 2006 2007 2008 2009 2010
fixed teledensity mobile density internet density of which broadband density
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ETNO members
Split of ETNO members’ | € billion turnover ETNO outside EU-15 12 NMS* EU-27 perimeter EU-27
2010 European turnover (bn €) 175.4 17.2 192.6 215.2 22,6 of which fixed 88.4 5.3 93.7 106.6 12,7
of which mobile 76.1 11.7 87.8 95.3 7,4 E IDAT of which other (non core. corporate. etc.) 10.9 0.2 11.1 13.3 2,2 : : Source
250
215.2 200 192.6 175.4
150
100
50
17.2 22.6 E IDAT
0 : Source EU-15 12 NMS EU-27 ETNO perimeter outside EU-27
Aggregated revenue of ETNO members ETNO members’ employees (EU + non EU) | € billion (EU + non EU) | thousand share of total sector revenue = 72.5 % share of total sector employment = 65.2 %
ETNON memberse r : 281,58 t – 1,2 % ETNON memberse e : 805,60 t – 0,9 %
Totaal sectort revenuev e : 388,58 t – 0,5 % Totaal sectort emplm oyymentt : 1128,42 t – 0,9 %
Source : IDATE Source : IDATE 0 50 100150 200250 300350 400 0 200400 600800 1000 1200
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3 . revenue and service trends
Broadband and mobile segments just compensate for the decline in fixed telephony
After the deterioration of the European telecoms markets in 2009, recovery seems to be underway, but results posted in 2010 were still weakened by the severity of the economic crisis. All segments were impacted with an accelerated decline in activities already concerned with structural downturn (fixed telephony) and a slowdown of growth was seen in other services (mobile, broadband).
There are clearly 3 areas with contrasted dynamics:
• Fixed telephony revenues are declining rapidly • The broadband and ultra-fast broadband (-2% in 2010 and –6.3% over the last 5 years) segments are the major growth drivers in and now account for only 49% of the total retail Europe’s telecom services market, fuelled by a telecoms market. growing subscriber base (+7.3% to 146 millions at the end of 2010 in ETNO countries). • Growth in Europe’s mobile market was very low in 2010: only 1%. The combination of a smaller decrease for mobile voice services (though users continued to switch to fixed IP and other mobile solutions such as SMS) and a slightly higher increase for mobile data services put things back on track after the recession in 2009. But most of the progress can be attributed to non-EU countries.
Overall figures Fixed telephony vs mobile telephony take up growth + take up of VoIP services in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia) | million
800 731.9 708.1 722.7 mobile subscribers 700 662.8 596.6 600 537.0 500
400
300 265.6 261.7 250.7 241.1 229.0 216.3 200 analog fixed access lines
100 53.5 24.1 34.2 44.7 6.5 13.8 VoIP connections 0 2005 2006 2007 2008 2009 2010 Source : IDATE
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ETNO members Total retail revenues o/w Fixed services Retail services revenues in Europe | € billion o/w Mobile services
198,3 199,1 189,9 200 184,1 101,7 103,3 97,5 93,6 150
100
96,7 95,8 92,4 90,6 50 E IDAT
0 : Source 2007 +0,4% 2008 - 4,6% 2009 - 3% 2010
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4 . investment trends
ETNO members accounting for about two thirds of investment in networks and services
Investments in wireline networks in Europe amounted to € 24 billion, increasing by 2.3% in 2010 compared to 2009 (with ETNO members still accounting for 64% of this expenditure) but remained below pre-crisis levels.
The number of FTTx homes passed increased are already equipped) rather than investing in to 79.2 million at the end of 2010, of which new areas: the penetration ratio (subscribers as a 20.7 million were FTTH/B homes passed (+22% % of homes passed) increased from 16.3% at the compared to the end of 2009) with ETNO beginning of the year to 18.6% at the end. accounting for 44% of this total (47% when considering FTTx including VDSL and FTTLA). Investments in mobile networks represented 46% of the total CAPEX in Europe in 2010 or € 20.4 billion, The number of FTTH/B subscribers reached 3.9 a 2% increase compared to 2009 as network million at the end of 2010, a 39%-growth over one operators need increasingly more capacity to year, showing that operators are mainly focused meet customer demand for mobile data. on leveraging their investments (i.e. acquiring – or ETNO members accounted for nearly 60% of this retaining – subscribers in the areas where homes expenditure.
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Overall figures
Total sector investment for 2010 ETNO members' CAPEX (ETNO perimeter) and share of total sector CAPEX | € billion
Share of ETNO members = 63.6 %
50 Total sector CAPEX
40 ETNO 44.5 members’ 30 CAPEX + 2.3 %* 28.3 20 + 4%* 10
0 Source : IDATE *2009 -2010
Investment in fixed vs mobile segments Telcos' tangible CAPEX (ETNO perimeter) | € billion
35
30.0 30.8 30.5 30 28.8 28.3 27,2 25
20 12.7 13.2 13.2 12.7 11.4 12.2 15.5 15.8 15.6 16.3 16.2 15 13.7
10 7.4 7.9 8.0 8.2 8.6 8.2 16.1 16.8 17.6 17.8 15.8 16.1
5 E IDAT 6.3 7.5 7.7 7.3 7.6 8.0
0 : Source 2005 2006 2007 2008 2009 2010
ETNO members operators other operators fixed mobile
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4 . investment trends
ETNO members
Aggregated investment by ETNO members in Europe ETNO members' tangible CAPEX in Europe (ETNO perimeter) | € billion
35
30 2.6 30.8 3.0 30.5 3.9 2.8 28.3 25 28.2 3.7 27.6 3.2 27.2 2.8 25.5 24.3 23.9 2.8 24.0 20 22.7 21.2 15
10
5 E IDAT
0 : Source 2007 European 2008 European 2009 European 2010 European
EU-15 12 NMS EU-27 outside EU-27 ETNO perimeter
Share of revenue devoted to CAPEX in 2010 Part of turnover devoted to investment (ETNO members) | percent
ETNO outside EU-15 12 NMS EU-27 perimeter EU-27
Tangible CAPEX/turnover 12.9% 16.5% 13.2% 13.1% 12.3%
fixed 14.6% 25.8% 15.2% 15.1% 13.8% E IDAT
mobile 12.8% 12.5% 12.8% 12.8% 13.2% : : Source
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5 . broadband
Broadband take up continues to boom with a progressive switch to NGA
Broadband penetration in Europe continued to increase in the recent period to 24.2% at the end of 2010 (24.2 broadband subscribers per 100 inhabitants), with a subscriber base of 146 millions (132.9 millions in EU-27).
Although fixed broadband coverage is now ADSL remains the prominent broadband access well advanced in Europe, with ADSL available to technology supporting more than 3 connections 95% of population in average, take up still varies out of 4. Cable modem is second but at a lower widely according to countries. At the end of 2010, level compared to ADSL (15% of broadband penetration was close to 40% in the Netherlands, connections) as coverage is far less. Denmark and Switzerland while it was below the Finally, ultra-fast broadband is gaining ground: 10%-mark in Turkey. Generally speaking, take up is with close to 11 million FTTx connections at the higher in Western countries (30% in average) than end of 2010, accounting for just over 8% of the in Central and Eastern European countries (15%). total at the end of 2010 (4.7% at the end of 2009). It is also higher in Nordic countries (Scandinavia) and in Benelux countries. Fixed vs mobile broadband Fixed and mobile broadband subscribers in EU-27 | thousand subscribers Overall figures 250 Broadband penetration 203.726 200 per technology 160.295 Structure of the European 150 132.852 fixed broadband market (EU-27) 113.751 100,725 thousands connections 123.762 | 100 80,502 113,242 59,692 75.165 13,940.2 50 44.127 E IDAT 19,057.7 21.741 53,625.5 0 : Source 2005 2006 2007 2008 2009 2010 End Total fixed broadband 2010 connections in 2010 = 3G subscribers 132,852.3 of which : Fixed broadband subscribers 99,854.4 ADSL of which ADSL retailed by incumbent Source : IDATE cable modem other technologies* (FTTx, LAN, FBWA, satellite…)
* VDSL and cable/ DOCSIS 3.0 are accounted for in the FTTx category Second Annual Economic Report ETNO 18
5 nga
ETNO members to drive NGA deployments
Data on broadband networks deployment show that the Digital Agenda targets for 2013 are well on track. As regards next generation access broadband, data confirm the leading role of ETNO members and the importance of a mix of technologies and platforms in order to achieve the 2020 targets of the Digital Agenda.
The total number of FTTH/B homes passed Data on broadband networks deployment show reached 20.7 millions in Europe (79.2 million FTTx that the Digital Agenda targets for 2013 are well homes passed including VDSL, FTTLA notably) on track. As regards, next generation access at the end of 2010, with 3.9 million subscribers broadband, data confirm the leading role of (10 million FTTx subscribers). ETNO members and the importance of a mix of technologies and platforms in order to achieve the 2020 targets of the Digital Agenda.
There have been close to 250 FTTH/B rollouts in Europe on scales that vary from only a few dozen buildings to several million homes passed. Though until now incumbent carriers account for only part of those deployments (representing less than 20% of homes passed with fibre in Europe, 44% for ETNO members including subsidiaries acting as competitive operators outside their domestic markets), they are the ones with the greatest growth potential. Virtually all of Europe's incumbent carriers are either involved in FTTH/B rollouts, are gearing up to it or are in the planning stages announcing multi-billion Euro investments. Furthermore, some of them are greatly involved in VDSL projects in their domestic markets (Deutsche Telekom with 10 million homes passed at the end of 2010; Belgacom, 3.3 million, Swisscom and Turk Telekom, 3 million each, Telekom Austria, 1.5 million).
In 2010, FTTH/B and FTTx deployments by ETNO members have increased by 33% and 55%, representing the biggest growth.
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Overall figures Broadband coverage at end 2010 NGA deployment in Europe (1) as a % of population FTTx deployments and share (2) home passed as a % of households of ETNO members per country |units
D.A. 2013 digital agenda 2020 FTTx homes share ETNO passed (000s) ADSL (1) VDSL (2) FTTLA (2) FTTH/B (2) BE 5 769.0 57.2% Austria 98% 41.2% 46.7% 3.5% DK 973.5 33,9% Belgium 100% 68.8% 51.4% 0.1% DE 23 242.0 43.0% Bulgaria 81% 0.0% 0.0% 35.2% IE 887.9 36.1% Croatia 90% 11.9% 0.0% 2.9% EL na na Cyprus 97% na na na ES 5 327.6 98.7% Czech Republic 92% 0.0% 0.0% 5.1% FR 6 092.3 11.5% Denmark 100% 3.5% 0.0% 30.8% IT 2 943.0 96.8% Estonia 94% 1.5% 26.1% 25.4% LU 216.0 100.0% Finland 96% na na 23.2% NL 2 403.0 46.7% France 100% 0.0% 0.0% 20.9% AT 3 327.5 46.4% Germany 97% 24.8% 31.4% 1.5% PT 4.759.0 21.0% Greece 92% 0.0% 0.0% na FI 596.9 92,1% Hungary 98% 0.0% 39.9% 5.9% SE 1 520.0 52.6% Iceland 95% na na na UK 4 625.0 0.0% Ireland 96% 21.3% 36.7% 1.2% BU 1 000.0 0.0% Italy 96% 1.6% 0.0% 10.1% CZ 360.0 0.0% Latvia 89% 0.0% 0.0% 36.1% CY na na Lithuania 89% 0.0% 0.0% 81.8% EE 325.0 50.8% Luxembourg 100% 78.1% 0.0% 20.5% HU 1 821.7 45.1% Malta 99% na na na LT 1 059.0 53.8% Netherlands 99% 22.4% 0.0% 9.9% LV 370.5 83.7% Norway 97% 0.0% 0.0% 18.0% MT na na Poland 77% 0.6% na 0.7% PL 525.4 79.1% Portugal 99% 0.0% 79.3% 38.6% RO 440.0 0.0% Romania 82% 0.0% na na SI 576.0 23.6% Slovakia 83% 0.0% 0.0% na SK 810.0 84.0% Slovenia 92% 1.9% 30.4% 37.7% CR 273.3 93.6% Spain 99% 0.0% 28.7% 2.5% NW 399.0 na Sweden 98% na 0.0% 32.3% CH 5 249.0 61.3% Switzerland 97% 85.3% 56.9% 7.1% TU 3 580.0 83.8%
E for ouncil Europe E for IDAT : Source Turkey na 19.2% na 3.7% UK 100% 15.3% 49.8% 1.1% Total EU-15 98% 12.6% 22.3% 8.8% Total EU-27 95% 10.2% 18.9% 8.7% E for FTTH C ouncil Europe E for IDAT : Source
Main technologies/ network architecture models NGA deployment (Homes passed at end 200) | million
Homes passed at end 2010 Total EU ETNO members % ETNO members
FTTH/B 20.7 9.2 44.2% E IDAT FTTx* (incl. VDSL, FTTLA, LAN…) 79.2 37.6 47.4% : : Source *All cable/DOCSIS 3.0 deployments are taken into account in the FTTx category
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6 new broadband services
Over the top services and applications continue to drive consumers usage of Internet
Four major usages should shape the internet future:
• Online search is by far the most commonly • Video consumption has grown strongly, used service, involving 78% of Internet users particularly due to videos shared on sites worldwide in 2010 and rising to 82% in 2015. like YouTube. This use also includes premium Derived services (mapping, directory search, videos (VoD and catch-up TV). Globally, etc.) are also very commonly used. about three-quarters of Internet users watch online videos. • Social networks have also experienced considerable growth: currently, two-thirds of Internet users are registered with a social network. • Lastly, e-commerce is more difficult to translate into practice, since it usually entails online payment. However, this use will continue to grow until it involves nearly half of Internet users in 2015.
Other Web services are also very well developed in terms of users (email, access to non-merchant services such as Wikipedia, online banking, government services, etc.), but they currently represent a very small part of Internet revenues, and this situation is unlikely to change.
Overall figures
Proportion of Internet users searching online 2010 by country, in 2010 and 2015 | % 2015 100
96% 94% 94% 95% 80 91% 89% 83% 86% 76% 60 73%
40
20
0 France UK Germany Italy Spain
Source: IDATE, in "World Internet Services Market", June 2011
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Use of online video services by country, 2010 in 2010 and 2015 | % of Internet users 2015 100
80 88,7% 86,7% 88,0% 89,3% 84% 83% 82,4% 83,7% 85% 78% 60
40
20
0 France UK Germany Italy Spain
Source: IDATE, in "World Internet Services Market", June 2011
Use of social networks by country, 2010 in 2010 and 2015 | % of Internet users 2015 80
72,6% 60 65,9% 66,8% 68,8% 58,6% 53,2% 53,9% 55,5% 40 46,8% 37,8% 20
0 France UK Germany Italy Spain
Source: IDATE, in "World Internet Services Market", June 2011
Proportion of Internet users shopping online 2010 by country, in 2010 and 2015 | % of Internet users 2015 80 79% 76% 74% 60 67% 69% 61%
40
32% 20 27% 22% 17% 0 France UK Germany Italy Spain
Source: IDATE, in "World Internet Services Market", June 2011
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7 . ranking in european & world companies
Top 40 global telecoms operators
2010 sales Rank Company Country (€ million) 1 AT&T USA 93,831 2 NTT Japan 88,639 3 Verizon USA 80,457 4 Deutsche Telekom Germany 62,421 5 Telefónica Spain 60,740 6 China Mobile China 54,115 7 Vodafone UK 53,534 8 France Télécom France 45,503 9 América Movil Mexico 36,322 10 KDDI Japan 29,542 11 Telecom Italia Italy 27,571 12 Comcast USA 27,000 13 Softbank Japan 25,845 14 Sprint Nextel USA 24,585 15 China Telecom China 24,520 16 BT UK 23,423 17 China Unicom China 19,104 18 Telstra Australia 17,186 19 Time Warner Cable USA 14,245 20 KT South Korea 13,932 21 KPN Netherlands 13,324 22 BCE Canada 13,243 23 Tele Norte Leste Brazil 12,652 24 SFR France 12,454 25 Telenor Norway 11,848 26 MTN South Africa 11,827 27 TeliaSonera Sweden 11,165 28 STC Saudi Arabia 10,427 29 SK Telecom South Korea 10,081 30 SingTel Singapore 10,006 31 Bharti Airtel India 9,819 32 Rogers Canada 8,931 33 Swisscom Switzerland 8,679 34 Vimpelcom Russia 7,937 35 Hutchison Whampoa HK 7,442 36 Telus Canada 7,167 37 Qwest USA 7,000 38 Rostelecom Russia 6,856 E IDAT 39 Liberty Global USA 6,808 40 Belgacom Belgium 6,603 : : Source
ETNO Second Annual Economic Report 23
7 . ranking in european & world companies
Top 20 European telecoms operators
2009 sales Rank Company Country (€ million) 1 Deutsche Telekom Germany 62,421 2 Telefónica Spain 60,740 3 Vodafone UK 53,534 4 France Télécom France 45,503 5 Telecom Italia Italy 27,571 6 BT UK 23,423 7 KPN Netherlands 13,324 8 SFR France 12,454 9 Telenor Norway 11,848 10 TeliaSonera Sweden 11,165 11 Swisscom Switzerland 8,679 12 Belgacom Belgium 6,603 13 Wind Italy 5,898 14 Bouygues Telecom France 5,636 15 Turk Telekom Turkey 5,452 16 Telekom Austria Austria 4,651 17 Virgin Media UK 4,522 18 Tele2 Sweden 4,208 E IDAT 19 Portugal Telecom Portugal 3,742
20 TDC Denmark 3,513 : Source
Further information:
• ALBtelecom (Albania) www.albtelecom.al • Belgacom (Belgium) www.belgacom.com • • BH Telecom (Bosnia and Herzegovina) www.bhtelecom.ba • Croatian Telecom (Croatia) www.t.ht.hr • • Cyprus Telecommunications Authority (Cyprus) www.cyta.com.cy • Deutsche Telekom (Germany) www.telekom3.de • • eircom (Ireland) www.eircom.ie • Elion (Estonia) www.elion.ee • Elisa Communications Corporation (Finland) www.elisa.com • • Entreprise des Postes et Télécommunications Luxembourg www.pt.lu • Finnet Group (Finland) www.finnet.fi • • GO (Malta) www.go.com • Koninklijke KPN (The Netherlands) www.kpn.com • Lattelecom (Latvia) www.Lattelecom.lv • • Magyar Telekom (Hungary) www.magyartelekom.hu • Makedonski Telekom (F.Y.R. of Macedonia) www.telekom.mk • • Orange (France) www.orange.com OTE (Greece) www.ote.gr • Portugal Telecom (Portugal) www.telecom.pt • • RomTelecom (Romania) www.romtelecom.ro • Síminn (Iceland) www.simi.is • Slovak Telekom (Slovakia) www.slovaktelekom.sk • • Societatea Nationala de Radiocomunicatii (Romania) www.radiocom.ro • Swisscom (Switzerland) www.swisscom.com • • TDC (Denmark) www.tdc.com • TDF (France) www.tdf.fr • Telecom Italia (Italy) www.telecomitalia.it •
• Telecom Liechtenstein www.telecom.li • Telefónica (Spain) www.telefónica.com • Telefónica O2 (Czech Republic) www.cz.o2.com • • Telekom Austria (Austria) www.telekom.at • Telekom Slovenije (Slovenia) www.telekom.si • • Telekomunikacja Polska (Poland) www.telekomunikacja.pl • Telenor (Norway) www.telenor.com • • TeliaSonera (Sweden – Finland) www.teliasonera.com • Teo Lt (Lithuania) www.teo.lt • • Türk Telekom (Turkey) www.turktelekom.com.tr •VIVACOM (Bulgaria) www.vivacom.bg •
Second Annual Economic Report ETNO ETNO Members:
ALBtelecom Elion Enterprises Ltd. OTE TDF Telenor (Albania) (Estonia) (Greece) (France) (Norway)
Belgacom Entreprise des Postes Portugal Telecom Telecom Italia Telekom Slovenije (Belgium) et Télécommunications (Portugal) (Italy) (Slovenia) (Luxembourg)
BH Telecom Finnet Group Societatea Nationala de Telecom Liechtenstein TeliaSonera (Bosnia and Herzegovina) (Finland) Radiocomunicatii (Romania) (Liechtenstein) (Sweden-Finland)
Cyprus Telecommunications Orange RomTelecom Telefónica Teo Authority (Cyprus) (France) (Romania) (Spain) (Lithuania)
T-Group* GO Síminn Telefónica O2 Türk Telekomünikasyon (Malta) (Iceland Telecom Ltd.) (Czech Republic) (Turkey)
Net (Croatia)
eircom Koninklijke KPN Swisscom Telekom Austria VIVACOM (Ireland) (The Netherlands) (Switzerland) (Austria) (Bulgaria)
* T-Group companies who are members of ETNO: Deutsche Telekom, Hrvastki Elisa Corporation Lattelecom TDC Telekomunikacja Polska Telekom, Magyar Telekom, (Finland) (Latvia) (Denmark) (Poland) Makedonski Telekom and Slovak Telekom,
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