Contenu connexe Similaire à Mr. André Merigoux's presentation at QITCOM 2011 (20) Mr. André Merigoux's presentation at QITCOM 20111. Turbulence ahead: innovative thinking urgently
needed to unleash digital delivery
QITCOM – May 25th 2011
André Merigoux – Public Affairs Director
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2. 1- Disruptive changes ahead
Massive investment needed
• Fixed and mobile / Core - backhaul - Access
• Future of mobile = fixed /
• Investments start in all regions of the World: USA, Asia, Russia, etc. ..
• But Europe is lagging behind
• Europe: the need for incremental investment over 10 years of 380 billion
€ in Europe, including 100 M € in the radio access (source: EC)
• End of voice models - distance
• Inability to monetize the explosion of data traffic for operators via
traditional business models
• Decoupling traffic / revenue - erosion of margins
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3. 1- Disruptive changes ahead
The changes in the value chain
• End of voice models - distance
• Inability to monetize the explosion of data traffic for operators via traditional
business models
• Decoupling traffic / revenue - erosion of margins
Emergence of OTT (Over The Top)
• OTT Generate traffic growth and innovation
• Bandwidth-intensive applications
• No incentive for an efficient use of bandwidth
• Unbalanced data interconnection agreements with operators
• OTT’s are global / operators are local
• Business Model: Market Cap and Price / Earning ... is different
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4. 2- What are the solutions for business
models?
New business models between operators and OTTs:
• Agreements of "wholesale" grading services on QoS: throughput, latency,
stability, security , jitter
• Multilateral agreements based on open protocols and standard
• Allow operators to manage their networks to offer differentiated services -
Debate on Net Neutrality ...
• 3 Conditions:
• Investments needed
• Non harmful discrimination
• Increased transparency: throughput, capacity, traffic management
system, user information on services offered
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5. 2- What are the solutions for revenue
increase?
Increased revenues from end users
• Monetizing new services
• Segmentation based on experience levels expected
• Responding to various requests from users
• Available in "overlay" and offer standard "best effort " with appropriate
pricing
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6. 2 – What are the solutions for policy
makers?
Governments step-in to accelerate,ensure coverage,
perequation and openness
• To achieve ubiquitous coverage of very high speed connectivity and tackle future
challenges of society (social inclusion, ageing population, climate change)
• To complement private initiatives in policy driven areas and maximize network’s
social benefits, minimize public funding thanks to perequation.
• To ensure network openness and cost-effective connectivity through network
sharing and competition while encouraging new investments needed to handle data
explosion
Different types of public intervention
• Government driven PPP projects (Australia, New Zealand, Singapore, India,Brazil…)
to foster coverage and competition
• Regional and local PPP projects (Italy, France, Spain,…) based on infrastructure
sharing
• Rural projects based on new competition models ( LTE sharing in rural areas,…)
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7. DIFFERENT POLICY & REGULATORY APPROACHES
Americas EMEA APAC
• Vertical integration & • Infrastructure competition • Network separation &
platform competition & public Intervention service-based competition
• Unregulated broadband • NGA regulatory framework in • Heavy influence of government
markets place (LLU & bitstream) and regulation
• No public intervention outside • State Aid in rural and medium • Structural separation, growth
rural areas density areas/infra sharing through premium connectivity
• Pro-active spectrum allocation • Digital dividend allocation wholesale
policy decided at Member-State level • Bitstream wholesale, open
• CALA countries focus on open • Digital Agenda targets difficult backbones & universal coverage
access wireless and open to meet with current lead network transformation
backbones incremental model - N. Kroes
initiative to foster investments
in NGA (300 B€ required)
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8. 3- What are the solutions for access
networks?
New investment models for Mobile networks sharing
fixed networks
• Layer 1: passive infrastructure (civil • Capacity increase will come from network
engineering, dark fiber) = 80% of densification: pico and femto cells with
the cost of the network with ROI of fixed backhaul
15 years
• Shortage in the number of sites in urban /
• Layer 2: active infrastructure environmental consideration = sharing sites
(network intelligence) = Return On themselves and Rans
Investment of 5 years • « Ran sharing » = sharing of radio access
• Layer 3: service = OTT model • Spectrum scarcity particularly in LTE with
larger channels, should lead operators to
increasingly share spectrum
Need to share, co-finance • Useless duplication of 3 or 4 networks in
and open Layer 1 rural areas
• Global phenomenon: Asia - Latin The future of mobile networks
America relies on fixed networks
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9. 3- What are the solutions in Europe?
Devise new investment models
• Revisit the dogma of passive infrastructure competition in favor of active
infrastructure competition?
• Avoid duplication of infrastructure level 1 and admit it should be
considered as an essential infrastructure?
• Define methods of long-term financing for this level 1 (European
Investment Bank Fund - national grant - local) if necessary using the
flexibility of PPP Models?
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10. 4- Initiative of Neelie Kross/
European Commission on 3rd March 2011
Participants CEO
• Alierta César * Telefonica • Gee-Sung Choi *** Samsung • Paolini Nonce * TF1
• Bäcklund Marcus * Voddler • Godlewski Miros•aw Netia PL • Piel Monika *** ARD
• Ballmer Steve * Microsoft • Richard Stéphane FT
• Granryd Mats Tele2
• Balsillie Jim * Research in Motion
• Gubitosi Luigi Wind • Sandberg Sheryl *** Facebook
• Bates Tony *** Skype
• Guillemot Yves *** Ubisoft • Schaeffer Dave Cogent
• Berkett Neil * Virgin Media
• Bernabè Franco Telecom Italia • Hagemann Snabe Jim *** SAP AG • Scheepbouwer Ad KPN
• Bogaert Lorenz Netlog • Jobs Steve ** Apple • Schmidt Eric *** Google
• Calve Simon * Lovefilm • Lévy Jean-Bernard Vivendi • Stefano Parisi Fastweb
• Chambers John T. *** Cisco • Livingston Ian BT • Stringer Sir Howard *** Sony Music
• Colao Vittorio Vodafone • Suri Rajeev *** Nokia-Siemens Networks
• Murdoch James * Newscorp
• Confalonieri Fedele Mediaset
• Niel Xavier Iliad Group • Thompson Mark *** BBC Trust
• Danon Pierre Numericable
• Nyberg Lars TeliaSonera • Tournay Cédric *** Dailymotion
• Donahoe John *** eBay
• Obermann René DT • Verwaayen Ben Alcatel Lucent
• Elop Stephen Nokia
• Fries Michael T. * Liberty Global • Ostrowski Hartmut Bertelsmann • Vestberg Hans *** Ericsson
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