Tiscali 2003 Annual Report Download - page 6

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IP only
Fiber + DWDM
Fiber + DWDM + IP
Metropolitan Area Network
Data Center
66
Focus on five key countries
Tiscali has decided to focus its efforts on the five key
markets that accounted for 90% of ADSL users at the
end of 2003, and wich generate 80% of Group reve-
nues: Italy, France, the UK and the Netherlands.
Unbundling the local loop.
To achieve success in the ADSL market, the
Company must have an effective business model
based on the provision of services through acces-
sing the local loop with proprietary networks and
technologies.
The strengths of this strategy are the high levels of
profitability it delivers (gross margin of over 70%) and
the vast potential for the provision of services and
content.
In particular, it enables the Company to offer “triple
play” products, whereby ADSL customers can receive
packages comprising Internet access, telephone and
other services and content. These packages can achie-
ve significant increases in aversge revenue per user
(ARPU).
The Company’s investments in unbundling are based
on its technological know-how and substantial infra-
structure, consisting of national networks that spread
over 15,000 km of optical fibres and an international
backbone that extends throughout Europe and as far
as the US.
The ULL strategy rolled out on the Dutch market in
2003 is to be developed in France and Italy in
2004, and in Tiscali’s other key markets at a later
date.
INTERNATIONAL
BACKBONE
Tiscali: the cornerstones of an effective business
model