FTTH in Europe Regulation in Europe. Karl Bauer, Member of Board of Directors 2009/2010 FTTH Council Europe

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1 FTTH in Europe Regulation in Europe Karl Bauer, Member of Board of Directors 2009/2010 FTTH Council Europe

2 FTTH Council Europe

3 FTTH Council Europe Our Vision: A sustainable future enabled by Fibre to the Home Our Mission To accelerate FTTH adoption through information and promotion in order to enhance the quality of life, contribute to a better environment and increased competitiveness Organisation Founded in 2004, non-profit industry organisation More than 130 members

4 FTTH Conference February Milan

5 FTTH Worldwide and in Europe

6 FTTH Global panorama M 2.5 M (3.5M)* 38 M and FTTH continues to grow * Including Russia

7

8

9 FTTH European Ranking 2009

10 FTTH European Ranking 2009 Countries Households FTTH/B subs Dec 2009 Penetration December 2009 FTTH FTTB 1 Lithuania ,68% Sweden ,21% Norway ,77% Slovenia ,14% Estonia ,94% Denmark ,43% Slovakia ,86% Finland ,84% Netherlands ,78% Italy ,46% Latvia ,32% France ,21% Czech Republic ,16% Portugal ,06% Bulgaria ,00% 6 23 Source: FTTH European Ranking, FTTH Council Europe & IDATE, December 2009 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.

11 Evolution of FTTH Subscribers in Europe Note: FTTH/FTTB definitions by the Global FTTH Councils

12 New subscribers per country in last 6 months Note: FTTH/FTTB definitions by the Global FTTH Councils

13 Evolution of FTTH homes passed in Europe Note: FTTH/FTTB definitions by the Global FTTH Councils

14 Portugal Telecom Is Fibre a Problem for Shareholders? Society Economy Common argument of incumbents: investors and shareholders don t support long term investments Portugal Telecom announced FTTH deployment in January 2009 The incumbent deployed a fibre network passing more than households within one year Value of shares of PT increased by more than 50% between April and December 2009

15 Conclusions The FTTH/B market is growing steadily in Western/Northern Europe Several Eastern European countries are significantly deploying FTTH/B and contributing to future growth Lithuania is new number one Slovenia, Estonia, Slovakia, Latvia, Czech Republic and Bulgaria are also all in the Ranking Portugal has proven that a joint effort of all players can push forward a country within just one year France joins Italy as the second European G-20 country to join the Ranking. UK and Germany are still missing. Four countries have more than 15% penetration In six countries, more than 10% of households are already using FTTH/B

16 What next?

17 European Region FTTH Forecast Connected Households, 000s Source: Heavy Reading Note: Households connected directly to fibre (FTTH) and appartments connected via basement fibre termination (FTTB)

18 Top 12 FTTH countries in 2014, by number of connected households Russia France Germany Netherlands Italy Sweden Spain UK Denmark Norway Switzerland Portugal Connected Households, Dec 2014 Source: Heavy Reading

19 FTTH countries in Europe, 2014, by household penetration Slovenia 35,8% Sweden Denmark Norway 27,2% 26,2% 29,2% Netherlands Slovak Republic Finland 17,0% 20,4% 20,0% Bulgaria 12,3% Russia 8,8% Switzerland Portugal France 12,5% 13,7% 12,9% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% Household penetration, Dec 2014 Source: Heavy Reading

20 Summary Over 23m households will be connected to FTTH or FTTB at the end of 2014 in the countries covered by this forecast this is about 8% of all homes in the region In the EU only, the total will touch 16 million, or 8.3% of all homes Six of the 21 nations individually analysed should achieve fibre maturity (20% penetration) by 2014 Slovenia, Sweden, Denmark, Norway, Netherlands and Slovakia On current trends, seven of those nations will still be under 10% penetration at the end of 2014 UK, Belgium, Poland, Spain, Greece, Italy and Germany Unlike most other regions, incumbents are not currently the major providers of FTTH, and this will likely remain the case through the next five years The dominance of FTTB and municipal build-outs means that P2P Ethernet is the main technology in use, though the proportion of PON will gradually increase

21 Two PracScal Examples

22 The Download Experience Video download: Download your videos from home! Also available in HD Quality File size: up to 20 Gbyte per film Games online: Steam Platform Download your game on your PC! Play it immediately!... after the 6,8 Gbyte download is completed... And many other applications: Game consoles: Sony Playstation Network, Nintendo Store, Xbox Live etc. Game publishers: Ubisoft, TellTale etc. Entertainment: Sony Online Entertainment, Walt Disney Online etc.

23 The Upload Experience Strato HiDrive The Secure Online Harddisc : For end customers: 100 Gbyte for 4,-- EUR/month For business: Gbyte for 40,-- EUR/month Access like a normal harddrive YouTube HD: Upload Videos in HD Quality Up to 2 Gbyte file size And many other applications: Online Applications & Cloud Computing Online Photoprinting-Services HD-Videoconferencing & Teleworking Care for elderly people

24 Thank you for your attention!

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