CABLENET OCECPR STAKEHOLDER MEETING. Nicolas Shiacolas CEO
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1 CABLENET OCECPR STAKEHOLDER MEETING Nicolas Shiacolas CEO
2 CABLENET Cablenet is the cable operator of Cyprus We own a NGN Hybrid Fibre Coaxial network Cover 174K homes about 56% of the market Our network covers urban Nicosia, Limassol and Larnaca Use DOCSIS 3.0 can offer speeds up to 400 Mbits Offer the highest retail broadband 120 Mbits Over 20% market share of broadband market
3 CABLENET FUTURE NETWORK ROLLOUT PLANS Over next 5 years Extend our network coverage to 220K homes 70% of market Cover sub-urban areas of Nicosia, Limassol and Larnaca Cover urban and sub-urban Paphos and Paralimni Upgrade to DOCSIS 3.1 up to 1 Gbit connections
4 CYPRUS EU BROADBAND STATISTICS Cyprus has traditionally had a bad reputation for slow and expensive broadband What do the numbers say? Cyprus is no. 1 in terms of broadband coverage in Europe Very high penetration of NGN networks 84% (12 th in EU) Very low penetration of very fast connections 3% (26 th in EU) Cost of LLU is exactly on par with EU average Last place for price of fast BB connections 2.8% of income
5 CYPRUS EU BROADBAND STATISTICS So where is the problem? The answer is cost of international capacity This is what is preventing Cablenet from lowering the price of our high speed broadband packages today International capacity accounts for a large portion of cost of very high speed BB connections 70% in our 120 Mbit package International capacity is the only variable element Price of local network is more or less fixed per connection
6 EU DIGITAL AGENDA DIRECTIVE Adopted by Cyprus as National Targets for Digital Strategy by % of homes to have access to 30Mbps will be achieved 50% of BB connections to be over 100Mbps much harder!
7 We estimate that there are about 125 Gbits in use for fixed line Internet in Cyprus today 960 Gbits 660 Gbits We estimate that by 2020 Cyprus will need between 660 Gbits to 960 Gbits to satisfy demand in order to meet DA targets 125 Gbits
8 How do we arrive at this number? We estimate there will be 275K connections by K today Average connection speed will be 60 Mbits Average of 50% at 100 Mbits and 50% at or around 30 Mbits Contention ratio will be at best 1:25 Today contention ratio on our international network is 1:40 275, = 660,000 Mbits or 660 Gbits
9 But what is driving this growth? The answer is video OTT services Netflix/Hulu/Amazon Netflix average stream speed in Europe today is 3.5 Mbits You can find details on ispspeedindex.netflix.com
10 But what is driving this growth? The answer is video OTT services Netflix/Hulu/Amazon Netflix average stream speed in Europe today is 3.5 Mbits You can find details on ispspeedindex.netflix.com Allowing for just one Netflix stream per connection 275, = 962,500 Mbits or Gbits
11 But what is driving this growth? The answer is video OTT services Netflix/Hulu/Amazon Netflix average stream speed in Europe today is 3.5 Mbits You can find details on ispspeedindex.netflix.com Allowing for just one Netflix stream per connection 275, = 962,500 Mbits or Gbits
12 But what is driving this growth? The answer is video OTT services Netflix/Hulu/Amazon Netflix average stream speed in Europe today is 3.5 Mbits You can find details on ispspeedindex.netflix.com Allowing for just one Netflix stream per connection 275, = 962,500 Mbits or Gbits
13 How much is this going to cost us? If nothing changes, we estimate that this will cost the industry over next 5 years 84 million for 660 Gbits 131 million for 960 Gbits BUT WE ESTIMATE THAT If price of international capacity does not decrease by a factor of 10 over next 5 years Cyprus will not meet 2 nd DA target
14 What should be done about it? The market for international capacity should be regulated Cost of international capacity for Cyprus is 7 times more expensive than other comparable connections in immediate area The government should use EU infrastructure funds to connect more international cables in Cyprus Build open-access landing station open to all providers Increase supply and lower prices Improve resilience for Cyprus Vital for establishing Cyprus as network hub
15 CABLENET Thank you Nicolas Shiacolas CEO
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