1. 2nd International Telecoms Forum
Intervention by Thierry Dieu
ETNO Director for
Communications and Public Policy
Moscow, 25 April 2012

2. About ETNO
The voice of Europe’s leading telecoms operators since 1992.
ETNO’s 40 full members and 10 observers from Europe and
beyond represent world leading telecoms operators and ICT
manufacturing providers.
ETNO members and observers account for an overall turnover of
€600 billion and 1.6 million employees.
Promote its members’ common interests by developing ETNO
positions and communicating them to European Union policy
makers
Facilitate cooperation and coordination of activities between
Members

3. *
* T-Group companies who are members of ETNO: Deutsche Telekom, Hrvastki Telekom, Magyar Telekom, Makedonski
Telekom and Slovak Telekom,

4. ETNO observers

5. Main challenges for Europe telecoms
operators in a changing landscape:

6. Commercial trends: continued internet traffic growth and
fall in out of bundle revenues
Global Consumer Internet Traffic
70000
• 4- fold growth within next 5 years.
60000
 Traffic from wireless devices will exceed traffic
from wired devices by 2015 10797
50000
 60% increase on fixed networks/ 100% on mobile
networks
40000 8375
P B /m o n th
30000 6523 33620
24357
5054
20000
17583
3771
12146
(source: CISCO) 10000
2888
8079
4672 13797
11040
7277 8867
4968 6017
0
2010 2011 2012 2013 2014 2015
File Sharing Internet Video Other

7. 6% revenue decline between 2008 and 2011
300
250
200
150
100
50
0
2007 2008 2009 2010 2011
Fixed telephony Mobile services Fixed Internet & data
Source: IDATE
Source : IDATE

8. Europe’s Telecom service in decline declining for second year
in a row

9. Telco’s business models at cross roads
Saturation of traditional markets
Competitive pressure on prices
Evolution towards data-centric business models
Regulatory constraints
Data traffic benefits OTT

10. Disconnect between those who generate the traffic
and those who bear the costs
Découplage trafic / revenues
Most of traffic growth is coming from OTT applications. Traditional
business models do not allow operators to monetise on traffic
increase.

11. Telcos’ investments up but revenue decline puts long term
investment capacity at risk

12. ETNO members: main investors in the sector

13. EU: not leader anymore in hihg speed networks
deployment
FTTH/B VDSL FTTLA FTTx+LAN Total FTTx
Europe de l'Ouest 17 293 26 897 38 168 0 82 358
Europe centrale et orientale 22 450 5 402 3 840 4 220 35 912
Amérique du Nord 23 990 33 850 65 440 123 280
Amérique Latine 1 227 0 0 0 1 227
Asie 112 335 1 624 2 000 na 115 959
Moyen orient et Afrique 1 549 1 400 0 0 2 949
TOTAL 178 844 69 173 109 448 4 220 361 685
Source : IDATE
Source: IDATE

14. Opportunities for change
• Need for new business models:
• Move from flat rate to tiered pricing (pay per usage, pay per service)
• Commercial agreements with OTT for premium services
• Exploit potential of e-services (healthare, energy, security, payments,
…) and online content
Up to 5% additional revenue by 2015 (ADL)
• Cloud computing

15. Challenge for policy makers: let new business
models emerging and stimulate investment
• No need for additional Net Neutrality law
• Level playing field
• Remove obstacles to single market for online services and content
• Facilitate cross-sector co-operation
• More targeted regulation of new networks
• Pricing flexibility
• Maintain value of current access (no reduction of copper prices)
• Rules that reflect platform competition
• Use of public funds for new networks in non-commercially viable areas only

16. More information…
www.etno.eu
#ETNOAssociation

17. Back up slides

18. Continued progress and substitution in access take up (1)

19. Continued progress and substitution in access take up (2)

20. ETNO members’ revenues down…