Tiscali 2007 Annual Report Download - page 30

Growth in the range of integrated services:
multiple play
With regard to the Voice segment, the traditional fixed tele-
phone market is continually decreasing (6.3% in Western
Europe in 2006) while IP technology telephone services by
contrast continue to grow, in concurrence with
unbundling
development
. In fact, it can be noted how in 2007 important
growth was witnessed in VoIP11 services by means of the inte-
grated range of services, the so-called double play which flanks
Internet access with the voice service.
In the next few years, former monopolies will need to face the
erosion of traditional voice services, and the resulting drop in
revenues and margins. This effect is due to growing pressure
from competition following the development of new technolo-
gies, and increased regulation of the broadband market.
By supplementing the ‘double play’ package with TV contents
as well, the ‘triple play’ package is achieved, Internet access
+ voice + IPTV, which will become increasingly more compet-
itive, representing a
core business both for the incumbents
and the alternative operators (OLOs), who will be able to avail
of an increase in the share of expenditure in communication
services by their customers. In order to offer IPTV services, it
is important to have a network that provides a high-speed
broadband and appropriate technological skills.
In the UK, one of the leading IPTV service providers is Home-
choice. The latter is a brand of the company VNL – acquired
by Tiscali in August 2006 – which has an optimum platform
and an extension contents portfolio, thanks to the agreements
concluded at local and international level. By means of its
brand, Tiscali launched the IPTV service in the UK in March
2007 and in Italy in December 2007.
Market trends imply focus on the user for every strategy, and
that competition targeted at capturing and keeping the atten-
tion of the public will intensify in the near future.
With a view to increasing ARPU and retaining customers, the
operators differentiate their supply via these services. Even if,
over the medium term, access will remain the most important
application, operators adapt their strategies from a service
access orientation to focusing on multi-play.
Tiscali’s aim, by means of the changeover to ‘Full Provider’ of serv-
ices, is to be productive and at the forefront, proposing itself as the
sole provider of all the services requested by the customer via an
“all-inclusive” formula, which is simple to use and innovative.
REPORT ON OPERATIONS
29
(000)
40,000
30,000
20,000
10,000
0
2006 2007 2008 2009 2010 2011
VOICE ITALY
Number of connections FIXED VOIP
SOURCE: TISCALI PROCESSING
(000)
60,000
50,000
40,000
30,000
20,000
10,000
0
2006 2007 2008 2009 2010 2011
VOICE UK
Number of connections FIXED VOIP
INCUMBET RETAIL DSL RESALE/BITSTREAM SHARED ACCESS FULL ULL
%
40
35
30
25
20
15
10
5
0
1Q 2007 4Q 2007 4Q 2008 4Q 2009 4Q 2010
WHOLESALE MARKET SHARES IN THE UK
SOURCE: ANALYSIS, “THE COMPETITIVE DYNAMICS OF DSL IN WESTERN EUROPE: PROSPECTS FOR UNBUNDLING LOCAL LOOP AND BITSTREAM” (OCTOBER 2006)
24% 37% 3% 10% 24% 33% 4% 14% 23% 29% 4% 18% 23% 27% 4% 22% 22% 25% 5% 25%
11. TISCALI PROCESSING