BEREC stakeholders forum October 2017 1 Investment is at its - PowerPoint PPT Presentation

BEREC stakeholders forum October 2017 1

Investment is at its highest level in France, despite stagnation of revenues Evolution of the investments and revenues of french operators (fixed and mobile) The current cycle is characterized by a significant « CAPEX race » for the rapid rollout of NGA networks: FTTH but also 4G and very soon 5G. 2

Alnets are playing a significant role in the CAPEX race (1/2) Capex-to-sale per operators (€m), sources operators 41.4% 30.0% 27.6% 27.2% 25.5% 24.2% 23.2% 21.0% 18.2% 21.0% 16.8% 16.6% 16.6% 15.7% 15.8% 15.0% 15.8% 18.0% 14.8% 15.4% 14.8% 16.2% 12.1% 14.5% 14.2% 12.7% 11.6% 11.0% 2010 2011 2012 2013 2014 2015 2016 Orange NC-SFR Iliad ByTel Alnets invest more than the incumbent compared to their revenues

Alnets are playing a significant role in the CAPEX race (2/2) Capex per operateurs (€m), sources operators 3 422 3 097 2 833 2 799 2 712 2 619 2 568 2 312 1 974 1 894 1 856 1 809 1 671 1 610 1 286 1 220 945 968 1 000 906 880 869 859 822 739 680 684 520 2010 2011 2012 2013 2014 2015 2016 Orange NC-SFR Iliad ByTel In 2016, alnets have invested €1Bn more than the incumbent

Orange is regaining market shares, thanks to FTTH FTTH subs and Orange’s market shares in FTTH, sources operators and ARCEP 3 000 70.0% 60.0% 2 500 50.0% 2 000 40.0% 1 500 30.0% 1 000 20.0% 500 10.0% - 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 Total FTTH subs Orange FTTH subs Orange FTTH market share Orange has close to 70% market shares in the FTTH segment 5

Key regulatory messages Avoid deregulations that are not justified by the competitive situation of the market: complete ex ante deregulation in case of coinvestment offer or lifting of price control obligations. ⇒ Regulatory holydays only lead to investment holydays Confirm the symetric regulation as implemented in France to ensure that all the FTTH networks to be rolled out are indeed open for competition (location and size of the concentration points). Keep the preference for passive products which allow competitor to differentiate. Give NRAs the power to impose mobile sharing where justified. Ensure pro-competitive conditions in the allocation and renewal of spectrum rights of use.