annual Economic Report 2011
driving the digital future
European Telecommunications Network Operator s’ Association
January 2012
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
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European Telecommunications Network Operators’ Association
ETNO represents 40 operators in 35 countries*, far beyond the boundaries of the European Union.
ETNO members’ presence in EU and neighbouring markets
ICELAND
ETNO members’ total revenue from European operations amounted in 2010 to approximately € 215 billion.
FINLAND
SWEDEN
49% of the turnover originates from fixed line operations, and 44% from mobile services.
NORWAY ESTONIA
LATVIA
LITHUANIA
DENMARK
1 member 2 members
IRELAND
3 members
POLAND
UNITED KINGDOM NETHERLANDS
4 members & more
BELGIUM LUXEMBOURG
CZECH REP.
GERMANY
SLOVAKIA
AUSTRIA
LIECHTENSTEIN
ROMANIA
HUNGARY
FRANCE
SWITZERLAND SLOVENIA
CROATIA BOSNIA-HERZEGOVINA
BULGARIA
ITALY
F.Y.R.O.M
(Former Yugoslav Republic of Macedonia)
ALBANIA
TURKEY
PORTUGAL
GREECE
SPAIN
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
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4
1. Introduction Introduction by Luigi Gambardella ETNO Executive Board Chair I am delighted to introduce to you the 2011 yearly economic report of ETNO. Latest revenue data demonstrate that EU telecoms sector revenue continued to experience a decline for the second year in a row, although at a slower pace, despite a slight recovery of the economy as a whole. This demonstrates that our sector is faced with structural changes. While revenues from traditional fixed and mobile voice products are declining, EU telco’s have to develop new business models that will generate new revenue streams. Today one out of five customers subscribes to a managed VoIP service, while video downloads and search engines remain the main usage of Internet. Data show that operators remain committed to investing despite reduced revenue. Even if investment has slightly increased compared to 2009, overall, investment has now fallen below the 2005 level.
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ETNO members continue to drive broadband deployment. Latest coverage figures show that 2013 targets of the EU Digital Agenda are well on track. As for 2020 objectives, figures clearly show that they will be reached only through a mix of technologies and platforms, fixed and mobile. Achieving these goals will require combined efforts of all. Creating the best conditions for investment and reassuring the markets in today’s difficult times must remain the key priorities. The continued increase in usage of social networking sites and other Over the Top Applications confirm the need for new models of cooperation. Policy for our sector needs to be flexible in order to enable operators to adapt to rapidly changing realities and let new business models emerge from the markets.
Luigi Gambardella ETNO Executive Board Chair
5
Introduction by Didier Pouillot, IDATE
Consulting & Research
For the past six years, this report has highlighted the main trends in the telecoms markets in Europe and in particular the role played by ETNO members. Since last year, this overview has been enriched with further data on the industry’s trends to form the ETNO's Yearly Economic Report.
In this context, ETNO members' activity was impacted, notably in their domestic markets where they face increased competition in mobile and broadband services and pricing constraints in regulated wholesale services. However, they still account for 72.5% of the industry revenues. Their tangible investments in Europe accounted for € 28.3 billion, slightly increasing (+4% year-overyear) and representing on average just over 13% of their regional revenues. The increase comes mainly from expenditure in mobile networks (from 11.4 billion € to € 12.2 billion).
In 2010, the European telecoms services market declined for the second time in a row as a consequence of the overall economic downturn and of structural industry reshaping. The average 1.4% revenue decrease, to € 275 billion, varied by segments and by countries but there were only few exceptions (modest growth was recorded in 4 countries) even if some improvement could be seen when compared with 2008-2009 market trends. Gaps between western and eastern countries in terms of growth have narrowed over the recent period.
Today, telcos are investing heavily in NGA networks: ETNO members in particular are deploying FTTx networks. At the end of 2010, they have built 37.6 million FTTx homes passed in Europe, a 50%+ increase compared to deployments at the end of 2009, one out of 4 is based on FTTH/B architecture (+33% FFTH/B homes passed by ETNO members year-over-year). In this race, they are faced with competition from alternative telcos but more significantly from cable operators and from diverse newcomers (utilities, local authorities …).
Regarding activities, revenue from mobile services which now accounts for more than half of total revenue, was up by 0.4% on average while revenue from fixed services decreased by 3.2%. In both mobile and fixed services sub-segments, data services were particularly dynamic: they could compensate for the decrease of voice services in the mobile area but not in fixed services as the development of broadband connections also leads to a shift from traditional services (switched telephony notably) to cheaper applications over IP (VoIP, IM, email…).
All this data illustrate the important role ETNO members continue to play in the context of a structural mutation of the telecoms industry as a whole and in a still difficult economic environment. Beyond their performance and relative resilience to the crisis, telecoms also have a key role to sustain the overall economy. This should encourage operators to commit to pursuing their innovation and investment efforts.
Didier Pouillot Head of the Telecom Economics Practice, IDATE
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2. m a r k e t t r e n d s 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
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Source : IDATE
7
In 2010, telecoms markets have been growing only in a handful of European countries, the same countries for which revenues increased in 2009 (Finland, France, Norway and Turkey). Revenues were flat in two other countries, the Netherlands and the United Kingdom but throughout the rest of Europe, telecoms markets remained under pressure, with only slight improvement in most countries and worsening conditions in a few of them, starting with Greece. Fixed telephony revenues were down 8% in average with the number of PSTN lines declining by more than 5% (-18.4% from 2005). More and more subscribers switched to VoIP using their broadband lines for telephony service; at the end of 2010, one out of 5 phone subscribers used managed VoIP (53.5 million VoIP subscribers in countries within the ETNO-perimeter, not taking into account those users of OTT solutions such as Skype). The fixed broadband subscriber base was
up 6.3% with penetration rates ranging from less than 10% (10 subscribers per 100 inhabitants) in Turkey to close to 40% in Denmark, the Netherlands and Switzerland: The European average (ETNOperimeter) was 24.4% at the end of 2010 and broadband revenues increased by 6.3% during the year, accounting for 13.6% of total telecom revenues (7% in 2005). However, the bulk of telcos revenues came from mobile services: with €142.3 billion in 2010, they accounted for 52% of the total revenue and their share has increased over time even if growth has dramatically slowed down in recent years (+0.5% in 2010, -1.3% in 2009). Dynamics in mobile data revenues (+21.5%) compensate for the decline in mobile voice. The European cellular subscriber base can not grow much more as penetration has now reached a very high level in most countries (123% in average for ETNO perimeter).
Overall figures Fixed telephony
Total telecoms services revenues in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia)
150
127,8
| € billion
Data & Internet
143,6
140.0
133,7
Mobile services
142,3
141,7
120
96,3
90,3
90
60
86,1
81,6
61,5
59,3
56,0
51,9
47.1
75,4
69,6
62,9
Source : IDATE
30
0
Total
2005
2006
2007
2008
2009
2010
t
t
t
t
t
t
271,2
275,9
282,1
284,5
278,7
274,9
* Average Revenue Per User
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2. m a r k e t t r e n d s
6 6 5 5 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6
-2,5 0,9 1 1,6 1,7 2,4 2,9
1,9 1,7 2 2,2 4,5 0,4
2005-2006 2005-2006
2006-2007 2006-2007
-2,2 -2,3 -2,4 -2,1 -0,8 -1,7
-1,2 -1,4 -1,7 -1,4
0,5 0,3 0,6 0,9 1,8
2007-2008 2007-2008
-0,4
Source : IDATE
Telecoms market revenue growth in EU compared to US/Asia & overall economic growth | %
2,3
2008-2009 2008-2009
2009-2010 2009-2010
6 6 5 5 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6
-3 -3,2 -3,1 -3 -1,7 -4,2 5 5,2 5,5 6
6 2,6
2005-2006 2005-2006
EU-5
ETNO
Source : IDATE
Current GDP growth | %
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EU-15
5,1 5,3 5,8 5,9 4,9 3,6
2,4 2,5 3 3,5 2,2 0,3
2006-2007 2006-2007
2007-2008 2007-2008
EU-27
EU (ETNO perimeter)
2,9 3
2008-2009 2008-2009
USA
3 3,5 3,8 4
2009-2010 2009-2010
Advanced Asia
9
EU Telecoms market growth 2009-2010 compared to IT services & TV services (etno perimeter) | % 8 7
TV services
6 5 3 2 1 0
t -1,4%
t -0,7%
Telecom services
IT services
u +7,1% Source : IDATE
4
-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
advan
4
USA
2 0
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 : IDATE
6
EU (ET
-2
EU-27
-4
EU-15
-6 EU-5
-8 -10 2005-2006
EU-5
2006-2007
EU-15
EU-27
2007-2008
EU (ETNO perimeter)
2008-2009
USA
2009-2010
Advanced Asia
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2. m a r k e t t r e n d s
Fixed access lines Mobile subscribers
Access to telecoms services in Europe (incl. Turkey, excl. Russia, Ukraine & Georgia)
Internet subscribers
| million lines/subscribers
800
731,9
722,7
708,1
700
of which broadband subscribers
662,8 596,6
600
537,0
500 400 261,7
250,7
200 100
2005
2006
2008
(incl. Turkey, excl. Russia, Ukraine & Georgia)
150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0
145,4
2009
2010
| percent of penetration per population
122,9%
121,7%
119,7% 112,5% 101,7% 92,0%
45,5%
44,6%
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2006
40,7%
mobile density
2008
internet density
36,3% 26,1%
25,6%
24,4%
23,0%
21,0%
18,6%
2007
38,6% 24,5%
23,3%
14,9%
11,0%
fixed teledensity
42,5% 21,2%
19,0%
2005
ETNO
155,5
136,8
124,5
2007
Teledensities in Europe
216,3 151,8
145,2
109,6
87,2
64,1
229,0
137,5
124,1
110,8
0
241,1
Source : IDATE
265,6
2009
2010
of which broadband density
Source : IDATE
300
11
ETNO members Split of ETNO members’ turnover | € billion
12 NMS*
EU-27
ETNO perimeter
outside EU-27
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
of which other (non core. corporate. etc.)
10.9
0.2
11.1
13.3
2,2
2010 European turnover (bn €)
Source : IDATE
EU-15
250 215.2
200
192.6 175.4
150 100
Source : IDATE
50 22.6
17.2
0 EU-15
12 NMS
EU-27
ETNO perimeter
outside EU-27
Aggregated revenue of ETNO members
ETNO members’ employees
(EU + non EU)
(EU + non EU)
| € billion
share of total sector revenue = 72.5 %
ETNO N members e r : 281,5 8
Total a sector t revenue v e : 388,5 8
| thousand
share of total sector employment = 65.2 %
t – 1,2 %
t – 0,9 %
N members e e : 805,6 0 ETNO
Total a sector t employment m y t : 1128,4 2
t – 0,5 %
t – 0,9 %
Source : IDATE
0
50 100 150 200 250 300 350 400
Source : IDATE
0
200
400
600
800
1000 1200
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3. r e v e n u e a n d s e rv i c e t r e n d s 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 (-2% in 2010 and –6.3% over the last 5 years) and now account for only 49% of the total retail telecoms market.
• The broadband and ultra-fast broadband segments are the major growth drivers in Europe’s telecom services market, fuelled by a 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) 800 662.8
700 600
| million
708.1
722.7
731.9
241.1
229.0
216.3
mobile subscribers
596.6 537.0
500 400 300
265.6
261.7
250.7
analog fixed access lines
200 100
6.5
13.8
24.1
34.2
44.7
53.5
2005
2006
2007
2008
2009
2010
0
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VoIP connections Source : IDATE
13
ETNO members
Total retail revenues
Retail services revenues in Europe | € billion 200
199,1
198,3 101,7
189,9 103,3
o/w
Fixed services
o/w
Mobile services
184,1 97,5
93,6
92,4
90,6
150
100 96,7
95,8
Source : IDATE
50
0 2007
+0,4%
2008
- 4,6%
2009
- 3%
2010
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4. i n v e s t m e n t t r e n d s 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 to 79.2 million at the end of 2010, of which 20.7 million were FTTH/B homes passed (+22% compared to the end of 2009) with ETNO accounting for 44% of this total (47% when considering FTTx including VDSL and FTTLA). The number of FTTH/B subscribers reached 3.9 million at the end of 2010, a 39%-growth over one year, showing that operators are mainly focused on leveraging their investments (i.e. acquiring – or retaining – subscribers in the areas where homes
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are already equipped) rather than investing in new areas: the penetration ratio (subscribers as a % of homes passed) increased from 16.3% at the beginning of the year to 18.6% at the end. Investments in mobile networks represented 46% of the total CAPEX in Europe in 2010 or € 20.4 billion, a 2% increase compared to 2009 as network operators need increasingly more capacity to meet customer demand for mobile data. ETNO members accounted for nearly 60% of this expenditure.
15
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 % Total sector CAPEX
50 40
ETNO members’ CAPEX
44.5
30
+ 2.3 %*
28.3
20
+ 4%*
10
Source : IDATE
0 *2009 -2010
Investment in fixed vs mobile segments Telcos' tangible CAPEX (ETNO perimeter)
| € billion
35 30
30.8
30.0
28.8
30.5 28.3
27,2
12.2
8.2 8.0
16.1
8.6 7.6
0
2005
2006
ETNO members operators
2007 other operators
2008 fixed
2009
Source : IDATE
11.4 15.8
8.2 7.3
17.8 7.7
16.2
16.3
15.6
8.0
7.9 7.5
6.3
5
12.7
13.2
13.2 7.4
16.1
10
15.8
15.5
13.7
17.6
15
16.8
20
12.7
25
2010
mobile
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4. i n v e s t m e n t t r e n d s ETNO members Aggregated investment by ETNO members in Europe ETNO members' tangible CAPEX in Europe (ETNO perimeter)
| € billion
35 30
2.6 3.9 28.2
25
30.8
3.0
24.3
20
30.5
3.7 27.6
3.2
2.8 2.8 25.5
27.2
2.8 24.0
23.9
28.3
22.7
21.2
15
Source : IDATE
10 5 0
2007 European
EU-15
2008 European
12 NMS
EU-27
2009 European
outside EU-27
2010 European
ETNO perimeter
Share of revenue devoted to CAPEX in 2010
ETNO
| percent
EU-15
12 NMS
EU-27
ETNO perimeter
outside 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%
mobile
12.8%
12.5%
12.8%
12.8%
13.2%
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Source : IDATE
Part of turnover devoted to investment (ETNO members)
17
5. b r oa d ba n d 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 well advanced in Europe, with ADSL available to 95% of population in average, take up still varies widely according to countries. At the end of 2010, penetration was close to 40% in the Netherlands, Denmark and Switzerland while it was below the 10%-mark in Turkey. Generally speaking, take up is higher in Western countries (30% in average) than in Central and Eastern European countries (15%). It is also higher in Nordic countries (Scandinavia) and in Benelux countries.
ADSL remains the prominent broadband access technology supporting more than 3 connections out of 4. Cable modem is second but at a lower level compared to ADSL (15% of broadband connections) as coverage is far less. Finally, ultra-fast broadband is gaining ground: with close to 11 million FTTx connections at the end of 2010, accounting for just over 8% of the total at the end of 2010 (4.7% at the end of 2009).
Fixed vs mobile broadband Fixed and mobile broadband subscribers in EU-27 | thousand subscribers
Overall figures
250
Broadband penetration per technology
200
Structure of the European fixed broadband market (EU-27)
150
| thousands connections
100
203.726 160.295 132.852 100,725
End 2010 99,854.4
Source : IDATE
Source : IDATE
0
123.762
75.165
50
44.127
19,057.7
53,625.5
113,242
80,502 59,692
13,940.2
113.751
21.741
2005
Total fixed broadband connections in 2010 = 132,852.3 of which : ADSL
2006
2007
2008
2009
2010
3G subscribers Fixed broadband subscribers
of which ADSL retailed by incumbent 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
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5  n ga 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 reached 20.7 millions in Europe (79.2 million FTTx homes passed including VDSL, FTTLA notably) at the end of 2010, with 3.9 million subscribers (10 million FTTx subscribers).
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. 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 |units
D.A. 2013
share ETNO
BE
5 769.0
57.2%
DK
973.5
33,9%
DE
23 242.0
43.0%
IE
887.9
36.1%
EL
na
na
ES
5 327.6
98.7%
FR
6 092.3
11.5%
IT
2 943.0
96.8%
LU
216.0
100.0%
NL
2 403.0
46.7%
AT
3 327.5
46.4%
PT
4.759.0
21.0%
FI
596.9
92,1%
SE
1 520.0
52.6%
UK
4 625.0
0.0%
BU
1 000.0
0.0%
CZ
360.0
0.0%
CY
na
na
EE
325.0
50.8%
HU
1 821.7
45.1%
LT
1 059.0
53.8%
LV
370.5
83.7%
MT
na
na
PL
525.4
79.1%
RO
440.0
0.0%
SI
576.0
23.6%
SK
810.0
84.0%
CR
273.3
93.6%
NW
399.0
na
CH
5 249.0
61.3%
TU
3 580.0
83.8%
ADSL (1)
digital agenda 2020
VDSL (2)
FTTLA (2)
FTTH/B (2)
Austria
98%
41.2%
46.7%
3.5%
Belgium
100%
68.8%
51.4%
0.1%
Bulgaria
81%
0.0%
0.0%
35.2%
Croatia
90%
11.9%
0.0%
2.9%
Cyprus
97%
na
na
na
Czech Republic
92%
0.0%
0.0%
5.1%
Denmark
100%
3.5%
0.0%
30.8%
Estonia
94%
1.5%
26.1%
25.4%
Source : IDATE for ouncil Europe
FTTx homes passed (000s)
Finland
96%
na
na
23.2%
France
100%
0.0%
0.0%
20.9%
Germany
97%
24.8%
31.4%
1.5%
Greece
92%
0.0%
0.0%
na
Hungary
98%
0.0%
39.9%
5.9%
Iceland
95%
na
na
na
Ireland
96%
21.3%
36.7%
1.2%
Italy
96%
1.6%
0.0%
10.1%
Latvia
89%
0.0%
0.0%
36.1%
Lithuania
89%
0.0%
0.0%
81.8%
Luxembourg
100%
78.1%
0.0%
20.5%
Malta
99%
na
na
na
Netherlands
99%
22.4%
0.0%
9.9%
Norway
97%
0.0%
0.0%
18.0%
Poland
77%
0.6%
na
0.7%
Portugal
99%
0.0%
79.3%
38.6%
Romania
82%
0.0%
na
na
Slovakia
83%
0.0%
0.0%
na 37.7%
Slovenia
92%
1.9%
30.4%
Spain
99%
0.0%
28.7%
2.5%
Sweden
98%
na
0.0%
32.3%
Switzerland
97%
85.3%
56.9%
7.1%
na
19.2%
na
3.7%
Total EU-15
100% 98%
15.3% 12.6%
49.8% 22.3%
1.1% 8.8%
Total EU-27
95%
10.2%
18.9%
8.7%
Turkey UK
Source : IDATE for FTTH Council Europe
FTTx deployments and share of ETNO members per country
(1) as a % of population (2) home passed as a % of households
Main technologies/ network architecture models Homes passed at end 2010
Total EU
| million
ETNO members
% ETNO members
FTTH/B
20.7
9.2
44.2%
FTTx* (incl. VDSL, FTTLA, LAN…)
79.2
37.6
47.4%
Source : IDATE
NGA deployment (Homes passed at end 200)
*All cable/DOCSIS 3.0 deployments are taken into account in the FTTx category Second Annual Economic Report
ETNO
20
6 n e w b r oa d ba n d s e rv i c e s 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 used service, involving 78% of Internet users worldwide in 2010 and rising to 82% in 2015. Derived services (mapping, directory search, etc.) are also very commonly used.
• Video consumption has grown strongly, particularly due to videos shared on sites like YouTube. This use also includes premium videos (VoD and catch-up TV). Globally, 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 by country, in 2010 and 2015 | %
2010 2015
100 80
91%
96%
94%
89%
94%
95% 83% 73%
60
86% 76%
40 20 0
France
UK
Source: IDATE, in "World Internet Services Market", June 2011
ETNO
Second Annual Economic Report
Germany
Italy
Spain
21
Use of online video services by country, in 2010 and 2015 | % of Internet users
2010 2015
100 80
84%
88,7%
86,7%
83%
78%
82,4%
83,7%
88,0%
85%
89,3%
60 40 20 0
France
UK
Germany
Italy
Spain
Source: IDATE, in "World Internet Services Market", June 2011
Use of social networks by country, in 2010 and 2015 | % of Internet users
2010 2015
80 60 40
72,6%
65,9% 58,6%
53,2%
68,8%
66,8% 55,5%
53,9% 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 by country, in 2010 and 2015 | % of Internet users
2010 2015
80 79%
76% 60
61%
69%
67%
74%
40 20
22%
17% 0
France
UK
Germany
Italy
27%
32%
Spain
Source: IDATE, in "World Internet Services Market", June 2011
Second Annual Economic Report
ETNO
22
7. r a n k i n g i n e u r o p e a n
&
wo r l d c o m pa n i e s
Top 40 global telecoms operators
ETNO
2010 sales (€ million)
Company
Country
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
39
Liberty Global
USA
6,808
40
Belgacom
Belgium
6,603
Second Annual Economic Report
Source : IDATE
Rank
23
Top 20 European telecoms operators 2009 sales (€ million)
Company
Country
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
19
Portugal Telecom
Portugal
3,742
20
TDC
Denmark
3,513
Source : IDATE
Rank
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 (Albania)
Elion Enterprises Ltd. (Estonia)
OTE (Greece)
TDF (France)
Telenor (Norway)
Belgacom (Belgium)
Entreprise des Postes et Télécommunications (Luxembourg)
Portugal Telecom (Portugal)
Telecom Italia (Italy)
Telekom Slovenije (Slovenia)
BH Telecom (Bosnia and Herzegovina)
Finnet Group (Finland)
Societatea Nationala de Radiocomunicatii (Romania)
Telecom Liechtenstein (Liechtenstein)
TeliaSonera (Sweden-Finland)
Cyprus Telecommunications Authority (Cyprus)
Orange (France)
RomTelecom (Romania)
Telefónica (Spain)
Teo (Lithuania)
T-Group*
GO (Malta)
Síminn (Iceland Telecom Ltd.)
Telefónica O2 (Czech Republic)
Türk Telekomünikasyon (Turkey)
Net (Croatia) eircom (Ireland)
Koninklijke KPN (The Netherlands)
Elisa Corporation (Finland)
Lattelecom (Latvia)
Swisscom (Switzerland)
TDC (Denmark)
Telekom Austria (Austria)
Telekomunikacja Polska (Poland)
VIVACOM (Bulgaria)
* T-Group companies who are members of ETNO: Deutsche Telekom, Hrvastki Telekom, Magyar Telekom, Makedonski Telekom and Slovak Telekom,
ETNO Observers:
ETNO a.i.s.b.l. Avenue Louise 54 - 1050 Brussels, Belgium - Tel: (32) 2 219 32 42 - Fax: (32) 2 219 64 12 - eMail: etno@etno.be - www.etno.eu