Tiscali 2007 Annual Report Download - page 31

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The graph below discloses the revenue trend in Western Europe
by business segment, where one can note an exponential
increase in IPTV revenues.
A strategic factor with regard to IPTV is the proposal of con-
tents and services which will be distributed and, in this sce-
nario, the users will transform from mere consumer into “con-
tent producers and distributors”. Competition in the supply of
converging and integrated services – voice, Internet access
and media services– will intensify, not only between the same
telephone operators but also between content distributors who
use other technological platforms (cable and satellite).
With regard to Internet access providers, whether they are
incumbents or OLOs
, the IPTV represents a strategy for retain-
ing customer loyalty and reducing the erosion of the average
revenue per user for telephone and pure Internet access. For
the sole operators, the TV range will be complementary to the
supply of voice and Internet access broadband services.
By integrating the
triple play
package with the mobile service,
a new package will be created, the quadruple play. At the fore-
front with regard to products and ranges, thanks to an agree-
ment with Telecom Italia, Tiscali also intends to complete its
range of telecommunications services with a view to the sup-
ply of four types of integrated services using the IP protocol
(so-called
quadruple-play
), or the integration in one or more
packages of its fixed network data services offered (mail, por-
tal, contents and value added services) with a mobile range.
The market broken down by geographic area:
Italy and the UK
Italy
In Italy, broadband connections recorded in 2006 were about
9 million and IDC estimates that these will reach 13 million by
2010. In the same period, revenues are expected to increase
by about 86%.
REPORT ON OPERATIONS
30
(ml)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2005 2006 2007 2008 2009 2010
CONSUMER BROADBAND REVENUES IN WESTERN EUROPE BY LINE OF BUSI-
NESS, 2005 - 2010
ACCESSO VOBB IPTV
SOURCE: IDC DATA PROCESSING, 2006
(000)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2005 2006 2007 2008 2009 2010
SOURCE: IDC DATA PROCESSING, 2006
BROADBAND CONNECTIONS IN ITALY, 2005-2010
(EUR ml)
4,000
3,000
2,000
1,000
0
2005 2006 2007 2008 2009 2010
SOURCE: IDC DATA PROCESSING, 2006
BROADBAND REVENUES IN ITALY, 2005-2010
16,000
12,000
8,000
4,000
0
Eur (ml)
4,000
3,000
2,000
1,000
0
2005 2006 2007 2008 2009 2010
BROADBAND CONNECTIONS AND REVENUES IN ITALY, 2005-2010
BROADBAND LINES REVENUES
SOURCE: IDC DATA PROCESSING, 2006
N. lines (000)