Tiscali 2007 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2007 Tiscali annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 165

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165

Faced with a decreasing fixed telephone service market, it is envis-
aged that the IP technology services market, both in Italy and the
UK, will grow constantly until 2010, with significant increases in the
VoIP, IPTV and value added service (VAS) sectors whose services
will be offered under the form of bundled service packets featuring
considerable advantages for the customer; such advantages will
include the convenience of the cost, a sole provider as supplier and
an extremely fast connection. These new methods for offering con-
verging services, made possible by the development of broadband
technology - double (Internet access + voice), triple (Internet access
+ voice + Iptv) and quadruple (Internet access + voice + Iptv +
Mvno) play – extend the competitive arena of the fixed telephone
market to operators of media services and mobile telephone serv-
ices while also posing themselves as the driving force behind a con-
solidation process.
National expenditure for telecommunications services on the fixed
network came in 2006 to around US$ 21.6 billion in the UK and
US$ 17.7 billion in Italy3. It is estimated that, while the tradition-
al voice market will decrease at a rate of around 9% and 5% per
annum in the period 2006-2011, respectively in the UK and in
Italy, the
broadband
market will rise by approximately 10%4.
Market overview
The Tiscali Group provides telecommunications services on
the fixed network in the UK and in Italy, respectively the sec-
ond and fourth leading European countries in terms of value,
after the German and French1markets.
Within this context, Tiscali is placed among the main alterna-
tive operators (OLOs) in Europe2who offer integrated Internet
access, telephone and multimedia services, mainly to resi-
dential customers. In detail, Tiscali is positioned in the IP tech-
nology services segment which makes it possible to provide
voice, Internet and video services using the same technolog-
ical platform.
REPORT ON OPERATIONS
25
30
25
20
15
10
5
0
Germany UK France Italy Spain Holland Switzerland Belgium Sweden Greece Portugal Norway Austria Ireland Finland
FIXED TELEPHONY MARKET - 2007A (IN BILLIONS USD)
SOURCE: TISCALI PROCESSING
BROADBAN FIXED TELEPHONY - VOICE
BROADBAND FIXED TELEPHONY - VOICE
21.0
18.0
15.0
12.0
9.0
6.0
3.0
0.0
ITALY – FIXED TELEPHONY MARKET (IN BILLIONS OF USD)
SOURCE: TISCALI PROCESSING
2006 2007A 2008A 2009A 2010A 2011A
17,7
14,6
3,0
17,6
14,0
3,6
17,4
13,4
4,0
17,2
12,9
4,3
16,8
12,2
4,6
16,3
11,5
4,8
5%
10%
1. - 2. - 3. - 4. TISCALI PROCESSING