BoR (14) 142. Presented by ECTA in relation to the public hearing on the draft BEREC Strategy and draft BEREC Work Programme 2015
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1 BoR (14) 142 Presented by ECTA in relation to the public hearing on the draft BEREC Strategy and draft BEREC Work Programme 2015
2 NGA investments are steadily increasing Source: Implementation of the EU Regulatory Framework for Electronic Communications 2014 The coverage of Next Generation Access (NGA) technologies doubled since NGA covers 62%, up from 54% a year ago. Next Generation Access (NGA) broadband coverage in the EU, Source: IHS,VVA and Point Topic
3 Rapidly increasing 4G (LTE) coverage 4G mobile broadband availability reached 59%, up from 27% a year ago. 4G has been commercially launched in all but three Member States. Mobile broadband coverage in the EU, G (LTE) Advanced 3G (HSPA) Source: IHS,VVA and Point Topic 4G (LTE) coverage, Total Rural BG CY MT CZ SK HR RO LV LT AT IE HU IT BE ES IS EL PL EU UK SI NO FR DK LU DE EE FI NL PT SE Source: IHS and VVA 3
4 Fast & ultrafast BB penetration is low and stagnating >30Mbps subscriptions are getting popular, while >100Mbps is still rare in the EU. Only an estimated 15% of homes subscribe to fast or ultrafast broadband. 25% 2 Fast and ultrafast broadband penetration (subscriptions as a % of population) at EU level, July January % At least 30 Mbps At least 100Mbps 6% 4% 2% Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Fast broadband (at least 30Mbps) penetration (subscriptions as a % of population), January % 1 5% IT CY EL SI FR ES AT EE CZ MT SK DE EU FI PL BG HU UK LU IE PT DK RO LV SE LT NL BE 4
5 Fast & ultrafast BB penetration is low and stagnating The take up of fast broadband (at least 30 Mbps) falls well below the NGA coverage: NGA is available to 62% of homes in Europe, but only an estimated 15% subscribe to fast broadband. Evolution of NGA coverage and high-speed (at least 30Mbps) take-up (% of homes) in the EU, NGA coverage High-speed take-up
6 Fast & ultrafast BB penetration is low and stagnating Take-up of ultrafast (>100Mbps) broadband remains marginal at 1.6 subscriptions per 100 people corresponding to 3% of homes. DAE target 5 of homes subscribing to at least 100Mbps by % in % 1 Ultrafast broadband (at least 100Mbps) penetration (subscriptions as a % of population), January % 6% 4% 2% EL IT CY MT PL UK LU BG AT DK DE HU SI EE ES EU SK CZ IE FR LT NL BE PT RO FI LV SE 6
7 Incumbents still control 42% of fixed BB subscriptions New entrant operators are continuously gaining market share, but incumbents still control 42% of the subscriptions. Fixed broadband subscriptions - operator market shares at EU level, January January Incumbents New entrants Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Fixed broadband subscriptions - operator market shares, January 2014 Incumbents New entrants BG PL RO CZ UK SK SI IE SE FR EU NL EL DE BE HU ES MT IT PT LT LV HR AT EE DK CY 7LU
8 Incumbents have over 8 of VDSL subscriptions In the DSL market, unbundling reduced the dominance of incumbents, but in VDSL incumbents have over 8 of subscriptions Incumbent's market share by technology, January 2014 All broadband NGA DSL VDSL Cable FTTH FTTB New entrants' subscriptions - using own infrastrucutre or the incumbent's network, January 2014 New entrant subscriptions using the incumbent's infrastructure New entrant subscriptions using own infrastructure BG MT RO LV LT EE HU CZ BE PL SK PT NL AT SE SI DK IE CY EU LU HR ES DE UK FR IT EL 8
9 Over 7 of fixed broadband subscriptions are xdsl Although the DSL market share has slightly declined since 2009 (8%), it s position can still be strengthened thanks to the increased VDSL coverage Fixed broadband subscriptions - technology market shares at EU level, January January 2014 DSL (VDSL included) Cable (DOCSIS 3.0 included) FTTH/B Other Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 9
10 New entrants mainly use LLU to compete in the provision of BB services 54% of DSL subscriptions belong to the incumbents. New entrants mainly use Local Loop Unbundling to sell DSL. New entrants` DSL subscriptions by type of access at EU level (VDSL excluded), ,000,000 Own network Full ULL Shared access 40,000,000 Bitstream Resale 30,000,000 20,000,000 10,000,000 0 Jan-11 Jan-12 Jan-13 Jan-14 DSL subscriptions - operator market shares (VDSL included), January Incumbent New entrants UK FR EL IT DE EU ES IE SI SE HR PL NL DK LU SK CY CZ PT AT HU BE LT EE MT LV RO BG 10
11 Broadband prices are a barrier to take-up Broadband take-up tends to be lower in countries where the cost of broadband access accounts for a higher share of income Affordability - a barrier to internet access at home (% of households without internet access) at EU level, % 3 25% 2 15% 1 5% Equipment costs Access costs The correlation between fixed broadband take-up and the relative price of broadband access is negative (-66%), so broadband take-up tends to be lower in countries where the cost of broadband access represents a higher share of the income. 26% of those households without internet access considers the broadband access prices a barrier to take-up, while for 3 the required equipment is not affordable. 11
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