3. FTTH/B Global Picture: APAC Strong leadership
FTTx means
FTTH/FTTB, FTTN+VDSL, FTTLA, FTTx+LAN
Global FTTx market: 112.7 M subscribers at June
2011, 61% being FTTH/B
… to June 2011
Asia is still the leading market (73% of
worldwide FTTH/B subscribers at June 2011)
7.3 M 10.2 M
Europe, including Russia, is progressing, in 0.4 M 49.5 M
particular thanks to Eastern countries (15% of
worldwide FTTH/B subscribers at June 2011)
<0.3 M
USA: a little slow down in deployment from
telcos in 1H11, but acceleration from local
authorities due to the Stimulus BB program
awards
LATAM & Middle East potential Source: IDATE
3
4. FTTH/B Global Picture: APAC Strong leadership
7 Asian telcos among the 10 leading players worldwide
2 Chinese operators leading the ranking!
1 Operator from Russia
4
6. USA: FTTx is the unique solution for RBOC’s
FTTH & FTTN RBOC’s rollouts
Power of Cable operators: Time Warner, Comcast, launching 30 or 50 Mbps offers
CableVision proposing a 101 Mbps offer … more than twice what Verizon's much-touted FiOS offers (50/20
Mbps)
At June 2011, Verizon has nearly signed 4.5 Million FiOS FTTH subscribers and has about 3.8 Million
FiOS TV subscribers
In June 2010, Verizon changed its strategy regarding the fibre optic deployment. It prefers now to focus on
the penetration rate rather than in its roll out. At June 2011, the FiOS network counts 15.7 million homes
passed or approximately 60% of total households in areas currently covered by Verizon’s wireline network
Initial Target: 18 million homes passed by 2010, has not been reached … Now LTE is being deployed
and next objective announced in December 2010 is to cover 18 million homes in the next three years.
AT&T (FTTN oriented) and Verizon launched Fibre access for delivering HDTV & Triple Play
Churn is very low for FiOS TV Subscribers: around 1%
2Q11: FiOS ARPU ~ $150
6
7. TV financing FTTx in the US
USA: FiOS TV Packaging & Pricing – Example
FiOS TV plans (April 2011)
Verizon claims now to be the 6th largest cable operator in the USA
7
10. Background of the Study
IDATE has been commissioned by the FTTH Council Europe to provide a
comprehensive overview of FTTH/B deployments in 39 countries in Europe (1) (9th
edition)
Methodology used
Desk research
Direct contacts with FTTH players (questionnaires, phone interviews)
Information exchange with FTTH Council Europe members
Direct contacts with IDATE’s partners in several European countries
Objectives: to provide a complete summary of the status of FTTH/B in
Europe, twice a year
Identification of new projects
Characterization of each project: organization initiating the project, Key
parameters& Figures (Homes and Buildings passed), Technical parameters,
Financing & Business model
We distinguished FTTH/FTTB and FTTN (FTTN/C+VDSL, FTTLA, FTTx+LAN)
10
11. Available results for EU39
Around 300 FTTx projects listed in EU39
Quantitative Qualitative
TEO
Identification Operator/Organisation
TEO is the Lithuanian incumbent, leader in the national broadband market.
The FTTH Project launched by TEO is one of its most important network modernisation projects. From 2007 to 2010 , the
company planned to invest more than LTL 100 million (38.9 million USD) in the new optical access network in the context
of an Internet plan called "Zebra".
Key parameters
June 2011 TEO first planned to connect the residents of the 5 biggest cities of Lithuania with FTTH, beginning with the provision of
fiber-optic Internet services in Vilnius.
FTTH/B subscribers (*) FTTH/B Homes/Buidings At the end of 2010, TEO provides FTTH services to 86 percent residents of Vilnius, 95 per cent residents of Klaipėda, 75
passed percent residents of Kaunas, and more than half of Panevėžys and Šiauliai residents. It expects to expand this FTTH
Asturias 11 000 51 000 network to fifty lithuanian cities which should represent an investment of more than LTL 70 million.
Telefonica 83 000 500 000 The total investment in the next-generation network should exceed LTL 325 million by the end of 2011.
At end 2010, there are 90,120 FTTH customers and 13,640 FTTB subscribers including 200 office buildings.
Orange na 10 000
In a long term perspective, TEO expects to be able to provide services at the speed of several Gbps. In this line, from May
Others (1) 7 130 na 2011, it increased speeds of its FTTH services ranging from 40 to 300 Mbps without additional cost for residential
Total FTTH/B 101 130 561 000 subscribers.
FTTN Homes/Buidings
FTTN subscribers (**) Figures
covered
Ono 270 000 7 000 000 Number of Households/Business Units passed 340,000 FTTH/B homes passed at December 2009
Telefonica na na 355,000 FTTH/B homes passed at June 2010 (IDATE
Others (2) estimates)
Total FTTN 270 000 7 000 000 570,000 FTTH/B homes passed at December 2010
700,000 FTTH/B homes passed at June 2011 (IDATE
Total Spain (***) 371 130 7 561 000 estimates)
FTTx subscriber base 11,600 FTTB and 51,000 FTTH subscribers at December
2009
84,500 FTTH/B subscribers at June 2010
103,760 FTTH/B subscribers at December 2010
120,000 FTTH/B subscribers at June 2011 (IDATE
estimates)
Technical parameters
Source: IDATE for FTTH Council Europe MDU 60% / SDU 40%
11
12. Overview: Projects FTTH/B
Countries Players Homes/Buildings
passed (June 2011)
Around 260 FTTH/B Bulgaria Blizoo Cable operator 1 100 000
European projects at Denmark
Estonia
TDC
Elion
Incumbent
Incumbent
250
210
000
000
mid-2011 Finland
France
Telia Sonera
SFR
Incumbent
Alternative operator
600
550
000
000
France Telecom Incumbent 819 403
Free Alternative operator 450 000
Numericable Cable operator 4 500 000
Germany Net Cologne Power utility 240 000
Wilhelm Tel Power utility 200 000
Hungary Magyar Telecom Incumbent 290 000
Italy
Some significant Fastweb
Telecom Italia
Alternative operator
Incumbent
2 000
550
000
000
FTTH/B deployments at Latvia Lattelecom Incumbent 357 485
Lithuania TEO Incumbent 700 000
June 2011 Netherlands KPN/Reggefiber Incumbent 768 000
Norway Altibox Power utility 350 000
Portugal Portugal Telecom Incumbent 1 279 000
(> 200,000 Homes Passed) Sonaecom Alternative operator 300 000
Vodafone Alternative operator 200 000
Russia Beeline/VimpelCom Alternative operator 8 900 000
Comstar UTS Alternative operator 2 000 000
ER Telecom Alternative operator 5 000 000
Slovakia Orange Slovensko Alternative opertaor 320 000
T-COM/Slovak Telecom Incumbent 360 000
Slovenia T2 Alternative operator 310 000
Spain Telefonica Incumbent 500 000
Sweden Telenor Alternative operator 500 000
Telia Sonera Incumbent 320 000
Switzerland Swisscom Incumbent 275 000
Turkey SuperOnline Alternative operator 718 000
UK BT Incumbent 250 000
Source: IDATE for FTTH Council Europe Ukraine Beeline/VimpelCom Alternative operator 3 000 000 12
13. FTTH in Europe – Overall Figures
At end of June 2011
EU35: 4.6 million FTTH/B subscribers
EU27: 4.1 million FTTH/B subscribers
CIS (Russia, Ukraine, Belarus, Kazakhstan): 5.6 million FTTH/B subscribers
EU35: 25.1 million FTTH/B Homes Passed
EU27: 23.4 million FTTH/B HP
CIS (Russia, Ukraine, Belarus, Kazakhstan): 14.7 million FTTH/B HP
Average Take Rate EU35: 18.3% in June 2011
13
15. New FTTH/B subscribers 1H11
►Top 5 countries
► France +87,300
► Portugal +71,000
► Bulgaria +69,000
► Netherlands +43,000
(Russia: + 964,000)
► Spain +41,149
15
16. FTTH/B Homes Passed evolution
►Countries > 1 million FTTH/B Homes Passed at mid-2011
16
17. FTTH/B Homes Passed in total HH
Number of Homes Passed not representative of effective coverage (HP in total
households)
Only 2 countries > 50%
Top 6 countries in terms
of HP in total households
17
18. FTTH/B leading countries
But number of subscribers less relevant than Take
Rates (1)
From the highest…
In Scandinavian countries : 62% in Norway, 39% in Sweden
In Hungary (37%), Slovakia (32%) or Netherlands (32%)
In the Baltics : 27% in Lithuania
…to the lowest
In France (10%), Switzerland (5%), UK (<1%)
Source: IDATE for FTTH Council Europe (1) Number of subscribers in total Homes Passed
18
20. Background of the Study
IDATE has been commissioned by the FTTH Council APAC to provide a
comprehensive overview of FTTH/B deployments in 14 countries in the Asia Pacific
region
Methodology used
Desk research
Direct contacts with FTTH players (questionnaires, phone interviews)
Information exchange with FTTH Council APAC members
Direct contacts with IDATE’s partners in several countries in APAC region
Objectives: to provide a complete summary of the status of FTTH/B in APAC, twice
a year
Identification of new projects
Characterization of each project: organization initiating the project, Key
parameters& Figures (Homes and Buildings passed), Technical parameters,
Financing & Business model
We distinguished FTTH/FTTB and FTTN (FTTN/C+VDSL, FTTLA, FTTx+LAN)
20
21. Available results for APAC
About 70 projects listed in APAC at mid-2011
Quantitative Qualitative
China Mobile
June 2011
Identification Operator/Organisation
FTTH/B subscribers (*) FTTH/B Homes/Buidings
China Mobile was created in 1997. It merged with China TieTong in 2009 in the context of the national restructuration of
passed the telecom market.
BSNL 550 000 1 200 000
Radius & Ericsson na 680 000
Key parameters
Hayai Broadband 5 000 500 000
China Mobile first get involved in the FTTH market by launching trials in 20 provinces in 2009, representing around
MTNL 500 5 000
100,000 connections.
ACT Broadband na 21 000 Then, to enhance its coverage, China Mobile, as its main competitors in the FTTx market, is also deploying FTTx+LAN.
Beam Telecom 120 000 na
Total FTTH/B 675 500 2 406 000
FTTN Homes/Buidings Figures
FTTN subscribers (**)
covered Number of Households/Business Units passed 2.5 million FTTH/B homes passed at December 2010
Barthi Airtel na 30 000 3 million FTTH/B homes passed at June 2011 (IDATE
MTNL 41 000 na estimates)
Tata TeleServices na 1 000 000 FTTx subscriber base 0.5 million FTTH/B subscribers at December 2010
Total FTTN 41 000 1 030 000 5.5 million FTTN subscribers at December 2010
0.8 million FTTH/B and 6 million FTTN subscribers at June
Total India (***) 716 500 3 436 000
2011 (IDATE estimates)
Technical parameters
Since first FTTH/B deployments, China Mobile is clearly oriented on GPON (very few EPON lines have been
deployed up to now).
ZTE, Huawei, FiberHome, Alcatel-Lucent, Ericsson are all partners of China Mobile.
Source: IDATE for FTTH Council APAC 21
22. Overview: Projects
About 70 FTTx projects in Asia at mid-2011
…and new entering
players on the market
India, Thailand, Malaysi
…to national programs a, Vietnam…
Australia, NZ, Singapor
e
From significant FTTH/B
deployments by
incumbents
Japan, South Korea
22
23. FTTH in Asia – Overall Figures
In June 2011
49.5 million FTTH/B subscribers
112.3 million Homes Passed (1)
Average penetration rate: 44%
23
25. FTTH/B Homes Passed evolution
►6 Countries > 2 M FTTH/B Homes Passed at mid-2011
25
26. FTTH/B Homes Passed in total HH
Number of Homes Passed not representative of effective coverage (HP in total
households)
3 countries > 90%
Huge gaps in the region from less than 3% to 95%
Top 7 countries in terms
of HP in total households
26
29. Drivers for FTTH
A market driven by competition … as it is the case in the US and
Europe, and in several APAC countries, Cable operators could be in the
driving seat
Quality of Copper Local Loop influencing migration of Residential
customers to Fiber – The case of Eastern Europe, LATAM, Middle East …..
and price of Local Loop Unbundling?
Mobile backhaul and LTE …
Mobile operators are densifying their backhaul with the explosion of Mobile Broadband
and Smartphones
LTE base stations will need fiber and Femtocells at home also!
Cloud Computing for SMEs
At the difference of the US, SMEs can be close to the residential areas
Short latency of Fiber will allow Cloud Computing to target SMEs
29
30. Challenges for FTTH
Business Model approach: same prices than ADSL for high penetration
rate or tiered pricing to leverage ARPU ?
Will new progress on copper technologies (VDSL2 Vectoring, Bonding)
delay FTTH rollouts for a while ?
Innovation on Services linked to FTTH in order to perceive consumers of
the benefits of Ultra Fast Broadband
FTTH as a risk to accelerate Telcos disintermediation or Open innovation
approach with OTT player (2 sided model) ?
Which Regulatory approach: infrastructures competition or Open Access
Model ?
Public funding (National & Local) in the current recession context ?
30
