Tiscali 2008 Annual Report Download - page 23

During 2008, progressive territorial coverage of the broadband
networks continued in Italy. Alongside first generation broadband
(up to 7 Mbps), which covers around 96% of the population,
coverage of 20 Mbps connections also rose and at present
stands at 57% of the population. At the same time, the
infrastructure level of the operators has increased, which by
now potentially permits more than half the population to use
the broadband services under LLU (Local Loop Unbundling).
The competitive scenario still remains characterized by heavy
vertical integration of the incumbent operator and by a reduced
presence of alternative broadband infrastructures.
It is estimated that the broadband connections on the fixed
network will increase at an annual average rate of around 6%
between 2008 and 2013, when 15 million users are reached.
In relative terms, or as a percentage of households, it is
envisaged that between 2008 and 2013, broadband penetration
will rise from 39% to 49%.
Market growth will also be further boosted by the evolution of the
broadband offers on the mobile network, whose expected average
annual growth rate comes to 16% between 2007 and 2013, when
around 11 million users will be reached, from the current 5 million.
The expected growth dynamics in supply and demand suggest
a rise in revenues relating to the fixed network broadband segment
which, between 2008 and 2013 will rise respectively from EUR
2.6 billion to EUR 3.9 billion, with an average annual growth rate
for the period of 9%.
United Kingdom
Over the last few years, the UK market has been one of the most
dynamic in Europe. Broadband connections on the fixed network
registered in 2008 came to over 17 million and it is expected
that in 2013 they will reach 22 million.
Over the same time period, an increase in revenues is also
envisaged, rising respectively from GBP 3 billion to GBP 3.8
billion.
Sharp growth will also be seen within the sphere of mobile
broadband connections which will pass from the 2.3 million
registered in 2008 to over 9 million in 2013, with an average
annual growth rate for the period of 32%.
The UK broadband market is very competitive and is
characterized by the presence of few large infrastructured
operators which are joined by a consistent number of operators
who merely resell internet access.
With regard to the penetration of broadband within households,
a slight slowdown in the growth rate is expected. In fact,
between 2008 and 2013, this will rise from 60% (17.5 million
connections) to 69% (21.9 million connections).
A considerable rise in the number of broadband connections
on the mobile network is also envisaged, as witnessed by the
data relating to the first half of 2008.
REPORT ON OPERATIONS
22
SOURCE: TISCALI ANALYSIS, 2008
Fixed Consumer BB Penetration (% of HH)
FIG. 4.3: EVOLUTION OF RESIDENTIAL AND BUSINESS BROADBAND
CONNECTIONS IN ITALY, 2007-2013 (Mln)
12.8
2.7
10.1
16.5
5.2
11.3
19.1
6.8
12.3
21.2
8.1
13.1
23.2
9.3
13.9
24.8
10.3
14.5
26.1
11.1
15.1
2007 2008 2009 2010 2011 2012 2013
35% 39% 42% 44% 46% 48% 49%
6%
16%
CAGR
‘08-’13
10%
Mobile
Fixed
SOURCE: TISCALI ANALYSIS, 2008
Fixed Consumer BB Penetration (% of HH)
FIG. 4.4: EVOLUTION OF RESIDENTIAL AND BUSINESS BROADBAND
CONNECTIONS IN THE UK, 2007-2013 (Mln)
16.7
1.1
15.6
19.8
2.3
17.5
22.4
3.7
18.7
24.9
5.3
19.6
27.4
6.9
20.5
29.6
8.3
21.3
31.1
9.2
21.9
2007 2008 2009 2010 2011 2012 2013
54% 60% 64% 65% 67% 67% 69%
5%
32%
CAGR
08-’13
9%
Mobile
Fixed