CEE Business Focus: Fibre Networks – Hartwig Tauber

CEE Business Focus: Fibre Networks –CEE in the fast laneCEE in the fast lane

Hartwig Tauber, Director GeneralFTTH Council Europep

Telecoms Investment Forum27 January 2011, Vienna

FTTHFTTH Council Europep

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FTTH Council Europe

Our Vision: A sustainable future enabled by Fibre to the Home

Our MissionOur Mission• To accelerate FTTH adoption through information and

promotion in order to enhance the quality of life, contribute t b tt i t d i d titito a better environment and increased competitiveness

OrganisationOrganisation• Founded in 2004, non-profit industry organisation• More than 150 member companies

FTTH Conference 20119-10 February 2011 Milan Italy9 10 February 2011, Milan, Italy

www.ftthconference.eu

Europe in the slow lane?Europe in the slow lane?ar

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FTTH Global panorama mid-2010 – Total subscribers

3.2 M(4.5M)* 43 M8.6 M

… and FTTH continues to grow* Including Russia Including Russia

FTTH Global Ranking mid-2010

FTTH European Ranking mid-2010

FTTH European Ranking – mid-2010

Source: FTTH European Ranking, FTTH Council Europe & IDATE, September 2010Note: The Ranking covers all countries with at least 200,000 households where FTTH/B penetration has reached 1% of the total number of homes.Note: The Ranking covers all countries with at least 200,000 households where FTTH/B penetration has reached 1% of the total number of homes.

• There are still more Municipalities and Power utilities than any other kind

Conclusions – FTTH players

of FTTH/B players at mid-2010

Source: IDATE for FTTH Council Europe

• Alternative operators are still the most dynamic and represent at mid-2010, including Russia, 72% of total European FTTH/B Homes Passed

• Incumbents are getting more and more involved: they represent morethan 17% of FTTH/B homes passed at June 2010 compared to 15% sixmonths earliermonths earlier

What next?ar

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European Region FTTH Forecast

30000

2331925000

300000s

16420

15000

20000

seho

lds,

000

7200

1066510000

15000

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1584 23993333

48725000

Con

Source: Heavy Reading, December 2009

02007 2008 2009 2010 2011 2012 2013 2014

Note: Households connected directly to fibre (FTTH) and apartments connected via basement fibre termination (FTTB)

Europe in Context: the Race to Fibre MaturityCountry 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Country 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Japan

Korea

China

Taiwan

Australia

USA

Canada

France

Germany

Italy

UKUK

SpainSweden

Netherlands

Source: Heavy Reading December 2009

EUROPEAN UNION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Heavy Reading, December 2009

Business Case & FinancingBusiness Case & Financing

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FTTH Business Case

• FTTH networks are future proof• FTTH networks are future proof

• FTTH roll outs are mid- and long-term investments

• Three areas for Business Case:• Urban areas with high population density• Rural areas with low population density• “Grey” areas between rural and urban

• Important Aspects:• OPEX savings• (re)use of existing infrastructure( ) g• Legal framework• Competitive environment

FTTH Financing

• Public financing• European Investment Bankp• National programs• EU programs (Eastern Europe)

• Private Financing• (Investment) banks• Investment funds / pension funds• Private investors

Thank you for your attention!y y

www.ftthcouncil.eu