Tiscali 2008 Annual Report Download - page 22

4.1 Tiscali’s position within the market scenario
The Tiscali Group provides telecommunications services on the
fixed network in the UK and in Italy. Within this context, Tiscali
is placed among the main alternative operators in Europe offering
integrated Internet access, and telephone services, mainly to
residential customers. Tiscali is positioned in the IP technology
services segment which uses a standardized technological platform
for providing all its product range. The Tiscali brand is synonymous
with innovation in terms of price and packaging but at the same
time offers outstanding value for money.
The broadband market in Europe
It is envisaged that the European market of broadband services
on IP technology will continue the growth process already highlighted
over the last few years. In detail, the differences in terms of Internet
access in the leading European countries will tend to decrease
even further.
The rate of internet penetration in countries less evolved in the use
of the web will tend to speed up, leading to a general increase in
penetration within Europe. Forrester Research envisages that it will
rise from 57.6% in 2007 to 70.6% in 2013.
Strong broadband distribution has transformed Internet access into
a mass consumption commodity. A dynamic market, characterized
by a growing level of competition, which has forced European
operators to expand their range with a portfolio made up of numerous
Internet access, voice and multi-media service combinations. The
increased request for services and contents has, in turn, generated
a growing band requirement by the end customer.
Competition between the various telecommunications operators
has also lead to the search for increasingly more efficient and
economic procedures for the supply of IP services. Direct
unbundled access (LLU) permits greater flexibility, with respect
to the Bitstream/Wholesale method, when differentiating its
product range and the possibility of offering its user base a
higher quality service.
It follows that the adoption of broadband connections within
European households will continue to grow also in the current
macro-economic situation guided by both the irreplaceability
of Web services and the stabilization of the prices of the supply
to households and businesses.
The broadband market in Italy and the UK
Sector studies indicate that the progression of broadband is not
destined to diminish over the next few years, but rather experience
different breakdowns according to the geographic context and
the transmission technology used by the operators to offer these
services (xDSL, cable, fibre optic or other technology).
Despite the technological evolution and the increasingly greater
availability of bundled multi-media services with broadband
access, the triple play (voice+data+video) products are still not
very widespread since both Italian and UK users continue to
prefer the classic broadband connection and dual play
(voice+data) service.
Italy
The development of broadband connections in Italy has been
one of the most sustained in Europe over the last few years,
passing from just over 6 million lines in 2006 to more than 11
million lines in 2008.
REPORT ON OPERATIONS
21
FIG. 4.1: EUROPEANS ON-LINE AND PENETRATION RATE 2007 - 2013
SOURCE: FORRESTER RESEARCH 2008
2007 2008 2009 2010 2011 2012
232.6
57.6%
247.3
61.0%
258.8
64.0%
268.1
66.0%
276.5
68.0%
283.3
69.0%
289.6
70.6%
2013
FIG. 4.2 – EVOLUTION OF BROADBAND CONNECTIONS
IN WESTERN EUROPE, 2007-2013
SOURCE: FORRESTER RESEARCH 2008
2007 2008 2009 2010 2011 2012
93
9.3
84.0
109
9.9
99.0
120
10.4
110.0
128
11.0
117.0
134
11.6
122.0
138
12.2
126.0
142
12.8
129.0
2013
People online (Mln) Penetration people online (%)
Consumer broadband Business
broadband