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

BEREC stakeholders forum

October 2017

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Investment is at its highest level in France, despite stagnation of revenues

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.

Evolution of the investments and revenues of french operators (fixed and mobile)

Alnets are playing a significant role in the CAPEX race (1/2)

Capex-to-sale per operators (€m), sources operators

11.0% 11.6% 12.7% 14.2% 14.5% 16.2% 18.0% 15.7% 14.8% 14.8% 15.8% 16.6% 16.8% 21.0% 25.5% 41.4% 30.0% 24.2% 23.2% 27.6% 27.2% 12.1% 15.0% 16.6% 15.8% 15.4% 18.2% 21.0%

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)

2 568 2 619 2 712 2 833 2 799 3 097 3 422 1 974 1 809 1 671 1 610 1 894 1 856 2 312 520 880 945 906 968 1 220 1 286 680 859 869 739 684 822 1 000

2010 2011 2012 2013 2014 2015 2016 Orange NC-SFR Iliad ByTel

Capex per operateurs (€m), sources operators

In 2016, alnets have invested €1Bn more than the incumbent

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Orange is regaining market shares, thanks to FTTH

FTTH subs and Orange’s market shares in FTTH, sources operators and ARCEP

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

• 500

1 000 1 500 2 000 2 500 3 000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Total FTTH subs Orange FTTH subs Orange FTTH market share

Orange has close to 70% market shares in the FTTH segment

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

• bligations.

⇒ 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.