Tiscali 2007 Annual Report Download - page 33

REPORT ON OPERATIONS
32
IPTV connections in the UK will increase from 0.08 million in
2006 to over 2.5 million in 2010.
Competition on the UK market is high with regard to prices.
The positive side to this competitive scenario lies in the fact
that BT is the European incumbent with the lowest national
market share. Over the next few years, BT is expected to lose
a greater share of the market to OLOs, including to Tiscali.
Regulatory background
In Italy, the array of measures and resolutions issued by the
Communications Watchdog committee (AGCOM) is in line with
those introduced by the corresponding regulatory authorities
of the most competitive markets in the European Union.
However, there is still the need to improve the efficacy of these
measures and above all else their implementation since the
incumbent operator still holds significant market power and a
greater share with respect to that of its similars operating on
other European markets.
In detail, with regard to the main regulatory activities intro-
duced during 2007, the AGCOM concentrated on three focal
aspects:
3Availability of new regulatory cases for the supply of commu-
nications services;
3Accountability in the supply in favour of informed choices by
the users;
3Consumer protection.
Specifically, the most significant measures originated by these
activities are illustrated below:
Separation of the network and development of the new gen-
eration access network (Next Generation Access Network -
NGAN): for the purpose of ensuring equal and non-discrimi-
natory treatment of the wholesale services offered by Telecom
Italia to the other operators (including the Retail division of the
Italian incumbent), AGCOM announced a special consultation
with the aim of examining the possibility of separating the
access network from the rest of the Telecom Italia organiza-
tion. (
Resolution No. 208/07/CONS – Launch of public con-
sultation on the regulatory aspects regarding the structure of
the fixed access network and the prospects of the new gener-
ation broadband networks
). The bottle-neck connotation of the
access network heightens with the changeover to the Next
Generation Access Networks (NGAN), with the risk that we will
– progressively – see a re-concentration of the end market, or
rather a further restriction of the limited degree of competition
guaranteed so far by the regulation of an open network. On
the other hand, the need to evolve towards the NGANs affects
all the fixed network operators, in all the European countries
(and not only), due to the need for a change in the business
models, associated with the integration processes: whether
among fixed and mobile networks/services, or among telecom-
munication and audiovisual. On the basis of these observa-
tions, the Authority therefore started up reflection on the most
efficient regulatory strategy for ensuring effective and stable
competition with the fixed network markets.
Migration process between alternative operators of end
customers: this is another important measure within the regula-
tory sphere by AGCOM. Resolution No.
274/07/CONS – Amend-
ments and integrations to resolution 4/06/CONS: Activation, migra-
tion and termination methods in access services
– it permits the
customers of an alternative operator (OLO) to choose another
without necessarily going back to being a Telecom Italia cus-
tomer. The end customer is also provided with the possibility of
directly contacting the new operator (
recipient ) who will take steps
to forward the documentation to the old Operator (donating) and
reduce the duration of the migration procedures also in order to
assimilate the matters established by Italian Law No. 40/2007
(so-called “Bersani” law)
“Urgent measures for the protection of
consumers, the furthering of competition, the development of
economic activities and the creation of new companies”. The
measure was defined at the end of 2007, even if for operative
purposes it will be introduced at the end of the first half of 2008.
(000)
3,000
2,500
2,000
1,500
1,000
500
0
2006 2007 2008 2009 2010
SOURCE: IDC DATA PROCESSING, 2006
IPTV CONNECTIONS IN THE UK, 2006-2010
(000)
10,000
8,000
6,000
4,000
2,000
0
2005 2006 2007 2008 2009 2010
SOURCE: IDC DATA PROCESSING, 2006
VOBB CONNECTIONS AND REVENUES IN UK, 2005 - 2010
CONNECTIONS REVENUS