#DWS15 #Gigabit

1. Welcome to the Gigabit era
Pierre-Michel ATTALI
Director of the
Digital Territories Business unit, IDATE
Future Networks Forum
18 November 2015

2. Superfast and ultra fast broadband networks
in France at mid 2015
France : 13.9 millions SFB and UFB home passed
Source : ARCEP / IDATE
21%
15%
8%
17%
0%
5%
10%
15%
20%
25%
FTTB FTTH FTTx/D3.0 VDSL2
% of households passed through SFB and
UFB fixed technologies
FTTB
FTTH
FTTx/D3.0
VDSL2

3. Superfast and ultra fast broadband networks
in France at mid 2015
France : 3.84 millions SFB and UFB subscribers
30%
26%15%
29%
FTTH
FTTB
FTTx/D3.0
VDSL
Breakdown of SFB and UFB subscribers
Source : ARCEP / IDATE

4. Public Initiative Networks (PIN): main projects in 2014
Main PINs in France
2014
• In 2014, more than 150
PIN were either
operational or under
construction in France
• Mainly 1st generation
PINs including some 30
with a partial FttH
deployment

5. Impact of PIN market players in 2014
Companies involved in PINs in 2014 (jobs and turnover)

6. • Extremely dynamic sector in terms of
job creation: over 82% of firms expect to
increase their (full time, open ended and
set term contract) employees over the
next three years
• A more than 91% increase in jobs
between 2010 and 2014 (representing
over 5,000 jobs in 2014)
Impact of PINs: Job creation

7. • More than 170% increase in
revenues between 2010 and 2014
(€1,265 billion in 2014)
• An extremely dynamic sector: more
than 89% of companies forecasting an
increase in PIN-generated revenue over
the next three years.
Impact of PINs: stimulating the economy

8. As of 30 June 2015
4,739,000 FttH access lines
• Private initiative: 4,032,000 lines
• Public initiative: 707,000 lines
In very high density areas
3,103,000 FttH access lines
• Private initiative: 2,882,000 lines
• Public initiative: 221,000 lines
In more sparsely populated areas
1,636,000 FttH access lines
• Private initiative: 1,150,000 lines
• Public initiative: 486,000 lines including
30% of FttH access lines
• PINs supply 30% of FttH access lines outside of very high density areas, with an
acceleration in the rate of FttH PIN rollouts in more sparsely populated areas in 2015
Source: ARCEP/ Superfast BB observatory/30 June 2015
Impact of PINs: positive externalities
Strong impact on the development of SUPERFAST BROADBAND

9. • PINs make it possible to attract operators and
so offer end users a larger selection of
products.
• On 55% of the PINs examined, there are 10 or more operators marketing their services which
means an increase in competition that is beneficial to end users.
Impact of PINs: positive externalities
• Of the 66 PIN that IDATE examined, the
number of operators (serving business and
residential users combined) total:
Strong impact on the development of COMPETITION

10. €115.7 million in combined annual increase
in purchasing power
Impact of PINs: positive externalities
938,595 residential DSL
customers served by PIN
(source: Avicca, TPIN 2014)
Estimated €56.3 million in savings
for consumers
thanks to competition stimulated by PIN, by
developing unbundling
Estimated €59.4 million in savings for
businesses/government agencies
thanks to wholesale access prices for PIN that are
lower than those charged by Orange, for
equivalent access products
10,475 businesses and 6,020
government agencies with fibre access
(source: Avicca,TPIN 2014)
Strong impact on households’ and businesses’ telecom costs

11. In municipalities with a population of over 500: an overall correlation between the presence of a PIN
and a lower rate of unemployment and a higher rate of new businesses creation than in equivalent size
towns not covered by a PIN.
Impact of PINs: positive externalities
Average number of new businesses (Source: INSEE
2013)
Average unemployment rate
(Source: INSEE 2011)
In municipalities with
optical fibre supplied by a
PIN
In municipalities without
optical fibre supplied by a
PIN
In municipalities with
optical fibre supplied by
a PIN
In municipalities without
optical fibre supplied by a
PIN
Municipalities with a population of between 500
and 2,000 (11,608 municipalities)
6.83 5.90 7.14% 7.30%
Municipalities with a population of between
2,000 and 4,999 (3,060 municipalities)
22.09 21.26 7.80% 8.56%
Municipalities with a population of between
5,000 and 9,999 (1,073 municipalities)
52.77 50.77 9.18% 9.89%
Municipalities with a population of between
10,000 and 49,999 (783 municipalities)
175.05 15.80 10.85% 11.81%
Municipalities with a population of between
50,000 and 200,000 (103 municipalities)
826.78 689.59 12.06% 13.61%
Stimulating jobs and new BUSINESSES