2007 Europe - Telecoms, Mobile and Broadband in France and Switzerland

Last updated: 27 Nov 2007 Update History

Report Status: Archived

Report Pages: 129

Analyst: Stephen McNamara

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Summary
Table Of Contents

Publication Overview

This report covers France and Switzerland, both key telecom markets in the forefront of emerging technologies and deployments, and closely involved with developing telecom markets in Eastern Europe. Trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments are covered. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Research, Marketing, Benchmarking;
Major Players, Revenues, Subscribers, Prepaid;
VoIP, IPTV, VoD, digital TV and DTTV;
Converged media.

Executive Summary

BuddeComm’s France and Switzerland Annual Publication, 2007 Telecoms, Mobile and Broadband in France and Switzerland, profiles two important markets central to European developments in the sector.

France’s large and affluent population has propelled the country’s telecom market to the first tier in Europe. The incumbent operator France Telecom has a number of fixed-line and mobile interests sweeping across Europe and it is at the forefront of emerging convergent business models focussed on triple and quad play offerings. Domestically, France Telecom has progressed with its all-IP NeXT strategy, upgrading its infrastructure to cope with increasing consumer demand for high-bandwidth applications. The strategy has led to France being a global leader in IPTV, accounting for more than half of all IPTV subscribers in Europe in 2007. In addition, France is one of the top European countries for fibre deployment. For the country overview, see chapter 1, page 1.

Switzerland’s smaller telecom market has excellent broadband and mobile services despite topographical challenges, and has become the first country in Europe to make broadband access a universal service. Government restrictions on Swisscom’s ability to expand internationally were lifted in 2007, with the result that the company can now broaden its horizons. Its aggressive moves into central European markets and its purchase of Italy’s leading fibre operator FASTWEB in 2007 are indicative of how the company plans to compete with other major players on the international stage. For the country overview, see chapter 2, page 73.

This report presents a concise overview of sector liberalisation and privatisation in France and Switzerland, and the development of both mobile and broadband product offerings as providers mould their strategies in increasingly competitive markets. It also includes essential operator statistics, assesses regulatory changes and their market implications, and analyses the emergence of convergence and triple play services.

Key Highlights

France remains Europe’s leading market for IPTV services, with the main service providers neuf Cegetel, France Telecom and Free (Iliad) competing for customers by offering an ever expanding range of channels coupled with Video-on-Demand services. VoIP is also very popular, and the provision of free national calls has become standard as operators look for the optimum portfolio of offers to secure customer stickiness. For more information, see chapter 1.8.4, page 45.
Digital TV take-up has progressed strongly. By January 2007 there were over 6.825 million DTTV STBs sold or leased in France, a 250% year-on-year increase. DTTV was available to 85% of the French population by mid-2007, and penetration for digital TV as a whole stood at about 40%. For more information, chapter 1.8, page 43.
France’s mobile market is facing increasing competition from a growing number of MVNOs. Although the 2.1 million MVNO subscribers in September 2007 represented only 4% of the overall subscriber base, growth is increasing steadily and may reach 17% of the market by 2010. For more information, see chapter 1.9.4, page 59.
Digital switchover in Switzerland has progressed well. Switchover in the German speaking parts of the country was completed in November 2007, with only the canton of Oberwallis to switch over in February 2008. By the end of 2008 the first national digital transmitter network should be completed, making it possible to receive DVB-T signals throughout Switzerland. Analogue TV transmissions were scheduled to close in 2010. For more information, see chapter 2.7.6, page 92.
Growth in the Swiss broadband market has continued strongly, while legislation making the provision of broadband a Universal Service Obligation will dramatically increase broadband availability to outlying rural areas. Swisscom’s hybrid fibre/VDSL infrastructure being rolled out to most cities by 2008 is exempted from LLU legislation, meaning that competitors will not have automatic access to it. This may protect Swisscom’s investment in the short term but the European Commission may oblige competitor access to promote competition. For more information, see chapter 2.6.5, page 89.

Broadband penetration in Switzerland and France – 2005 - 2007

Year	Switzerland	France
2005	23.1%	15.7%
2006	28.5%	20.5%

(Source: BuddeComm based on industry sources)

For those needing high level strategic information and objective analysis on this region, this report is essential reading and gives further information on:

Fibre networks as a driver for high-bandwidth services;
The increasing demand for VoD and IPTV stimulating investment in network upgrades beyond urban centres;
The impact on broadcasters and content from digital switchover;
How fixed-mobile convergence and widespread triple play services have become standard in many homes, and how new business models respond to consumer interest in bundled packages.

Data in this report is the latest available at the time of preparation and may not be for the current year.


1.	FRANCE
1.1	Key statistics
1.2	Telecommunications market
1.2.1	Overview of France’s telecom market
1.3	Regulatory environment
1.3.1	History
1.3.2	Regulatory authority
1.3.3	Telecom sector liberalisation in France
1.4	Fixed network operators in France
1.4.1	France Telecom
1.4.2	neuf Cegetel
1.4.3	Tele 2
1.4.4	Other developments
1.5	Telecommunications infrastructure
1.5.1	National telecom network
1.5.2	International infrastructure
1.6	Broadband market
1.6.1	Overview
1.6.2	Internet market
1.6.3	Cable modems
1.6.4	Asymmetrical Digital Subscriber Line (ADSL)
1.6.5	Other DSL developments (xDSL)
1.6.6	Fibre-to-the-Home (FttH) networks
1.6.7	Broadband Powerline (BPL)
1.6.8	Wireless broadband
1.6.9	Broadband forecasts to 2017
1.7	Convergence
1.7.1	Overview of media convergence
1.7.2	Key general trends
1.7.3	Digital dividend
1.7.4	Triple play models
1.7.5	Quadruple play models
1.7.6	Regulator issues
1.8	Digital TV
1.8.1	Overview
1.8.2	Digital Terrestrial TV (DTTV)
1.8.3	Free-to-Air (FTA)
1.8.4	TV-over-DSL (IPTV)
1.8.5	Video-on-Demand (VoD)
1.8.6	VoIP
1.8.7	Interactive TV (iTV)
1.8.8	Cable TV (CATV)
1.8.9	Satellite-based digital pay TV developments
1.9	Mobile communications
1.9.1	Overview of France’s mobile market
1.9.2	Regulatory issues
1.9.3	Mobile technologies
1.9.4	Major mobile operators
1.9.5	Mobile voice services
1.9.6	Mobile data services
1.9.7	Mobile content and applications
2.	SWITZERLAND
2.1	Key statistics
2.2	Telecommunications market
2.2.1	Overview of Switzerland’s telecom market
2.3	Regulatory environment
2.3.1	History
2.3.2	Regulatory authorities
2.3.3	Telecom sector liberalisation in Switzerland
2.3.4	Privatisation of Swisscom
2.3.5	Interconnect
2.3.6	Access
2.3.7	Number portability
2.3.8	Carrier PreSelection (CPS)
2.3.9	Universal service
2.4	Fixed network operators in Switzerland
2.4.1	Market overview
2.4.2	Swisscom
2.4.3	TDC Switzerland (Sunrise)
2.4.4	Cablecom
2.5	Telecommunications infrastructure
2.5.1	National telecom network
2.6	Broadband market
2.6.1	Overview
2.6.2	Cable modems
2.6.3	Asymmetrical Digital Subscriber Line (ADSL)
2.6.4	Fibre-to-the-Home (FttH) networks
2.6.5	Broadband forecasts to 2017
2.7	Convergence
2.7.1	Overview of media convergence
2.7.2	Key general trends
2.7.3	Triple play models
2.7.4	VoIP
2.7.5	Regulatory issues
2.7.6	Digital TV (DTV)
2.8	Mobile communications
2.8.1	Overview of Switzerland’s mobile market
2.8.2	Regulatory issues
2.8.3	Mobile technologies
2.8.4	Major mobile operators
2.8.5	Mobile voice services
2.8.6	Mobile data services
2.8.7	Mobile applications
3.	GLOSSARY OF ABBREVIATIONS

Exhibit 1 – Orange and SFR WiFi plans compared
Exhibit 2 – 3G beauty contest winners
Exhibit 3 – Operators GPRS and GPRS – WiFi launch dates

Table 1 – Country statistics France – 2007
Table 2 – Telecom revenue and investment statistics – 2006
Table 3 – Telephone network statistics – June 2007
Table 4 – Internet user statistics – June 2007
Table 5 – Broadband statistics – Sept 2007
Table 6 – Mobile statistics – June 2007
Table 7 – National telecommunications authorities
Table 8 – End-user telecom market value – 2002 - 2006
Table 9 – End-user telecom market growth – 2002 - 2006
Table 10 – Fixed-line market statistics, value, lines and annual change – 2006
Table 11 – ARPU by sector and annual change – 2005 - 2006
Table 12 – Proportion of telecom market value by sector – 2006
Table 13 – Mobile market value, volume, ARPU and annual change – 2006
Table 14 – Internet market statistics and annual change – 2006
Table 15 – End user traffic volume by sector – 2002 - 2006
Table 16 – End user traffic growth by sector – 2002 - 2006
Table 17 – Telecom market revenues by sector and annual change – 2005 - 2006
Table 18 – Telecom market traffic volume and annual change – 2005 - 2006
Table 19 – Number of fixed lines and annual change - 2004 - 2006
Table 20 – ARPU by sector and annual change - 2005 - 2006
Table 21 – Interconnect charges – 2005 - 2006
Table 22 – Interconnect revenue and annual change – 2005 - 2006
Table 23 – Interconnect volume and annual change – 2005 - 2006
Table 24 – France Telecom wholesale broadband offers by type – 2005 - 2007
Table 25 – Unbundled lines and annual change (regulator data) – 2005 - 2006
Table 26 – LLU, shared access price - connection, monthly rental – 2004 - 2006
Table 27 – Unbundled loops and access lines – 2004 - 2007
Table 28 – Access lines, LLU and bitstream (regulator data) – 2006 - 2007
Table 29 – Fixed numbers ported – 2003 - 2006
Table 30 – Fixed numbers ported (regulator data) – 2006 - 2007
Table 31 – Indirect connections and annual change – 2006 - 2007
Table 32 – Growth in carrier preselection – 2002 - 2006
Table 33 – Fixed-line subscriptions by type 2002 - 2006
Table 34 – France Telecom fixed-line, LLU, DSL subscribers 2005 - 2007
Table 35 – France Telecom financials and al change – Q3 2007
Table 36 – neuf Cegetel financial statistics, annual change - 2005 - 2006
Table 37 – France Telecom wholesale DSL, naked ADSL, WLR - 2006 - 2007
Table 38 – Internet user ARPU – 2004 - 2006
Table 39 – Internet users and penetration – 1995 - 2007
Table 40 – Percentage of households with Internet access – 1997 - 2007
Table 41 – Access lines, LLU and bitstream (regulator data) – 2006 - 2007
Table 42 – Average monthly broadband and dial-up subscription cost – 2006
Table 43 – Internet revenue by access type - 1998 - 2006
Table 44 – Dial-up Internet and broadband revenue and annual change – 2005 - 2006
Table 45 – Internet subscribers by type and annual change (regulator data) – 2005 - 2006
Table 46 – Broadband subscribers by type and penetration – 2000 - 2007
Table 47 – Broadband subscribers by type – incumbent or other provider – 2006 - 2007
Table 48 – Broadband subscribers, share of Internet subscribers (regulator data) – 2000 - 2007
Table 49 – Broadband market share by provider – 2005 - 2006
Table 50 – Narrowband Internet subscriptions and annual change – 2005 - 2006
Table 51 – Narrowband Internet revenue and annual change – 2005 - 2006
Table 52 – Cable modem subscribers – 2000 - 2007
Table 53 – Numéricable TV, Internet and telephony subscribers – June 2007
Table 54 – UPC France cable, Internet and telephony subscriber statistics – 2005
Table 55 – ADSL subscribers – 2000 - 2007
Table 56 – Principal broadband providers – subscribers and market share – 2006
Table 57 – France Telecom broadband subscribers – 2003 - 2007
Table 58 – Free revenue, EBITDA, profit and annual change – 2005 - 2006
Table 59 – Free broadband and telephony revenue and annual change – Q1 2006 - Q1 2007
Table 60 – Free DSL, LLU subscribers – 2005 - 2007
Table 61 – Liberty Surf DSL and narrowband subscribers – 2006 - 2007
Table 62 – neuf Cegetel broadband subscribers – 2007
Table 63 – Free market projections – Paris fibre - 2006; 2008; 2010; 2012; 2014
Table 64 – Forecast broadband subscriber growth – stronger market growth scenario – 2007 - 2011; 2017
Table 65 – Forecast broadband subscriber growth – weaker market growth scenario – 2007 - 2011; 2017
Table 66 – DTV audience share by broadcaster – Q1 2007
Table 67 – IPTV subscribers – 2005 - 2006
Table 68 – France Telecom IPTV subscribers – 2005 - 2007
Table 69 – Free broadband subscribers – 2006 - 2007
Table 70 – Free revenue, EBITDA, profit and annual change – 2005 - 2006
Table 71 – VoIP traffic as proportion to all traffic – 2005 - 2006
Table 72 – VoIP lines and annual change – 2005 - 2006
Table 73 – Cable pay TV subscribers and penetration – 1997 - 2007
Table 74 – Satellite pay TV subscribers and penetration – 1997 - 2007
Table 75 – Canal+ revenue – 2006 - 2007
Table 76 – Canal Group subscribers – 2005 - 2007
Table 77 – Mobile revenue by prepaid and contract sectors - 2006 - 2007
Table 78 – Average mobile ARPU - 2006 - 2007
Table 79 – Mobile operators, technology, subscribers and annual growth – June 2007
Table 80 – Mobile subscribers and teledensity – 1996 - 2007
Table 81 – Mobile services revenues and traffic – 1998 - 2007
Table 82 – Mobile voice traffic and annual change – 2005 - 2006
Table 83 – Mobile operator market share – 2005 - 2007
Table 84 – Mobile operator share of net adds – 2005 - 2007
Table 85 – Mobile termination charges – 2005 - 2008
Table 86 - Total mobile numbers ported – 2005 - 2007
Table 87 – Orange mobile subscribers (France) – 2005 - 2007
Table 88 – Orange contract, prepaid, voice and data ARPU – 2005 - 2006
Table 89 – Orange network ARPU - 2005 - 2007
Table 90 – Orange financial statistics – 2005 - 2007
Table 91 - SFR revenue – 2004 - 2007
Table 92 - SFR ARPU – 2005 - 2007
Table 93 - SFR subscribers and annual change – 2006 - 2007
Table 94 - Bouygues Telecom subscribers – 2005 - 2007
Table 95 - Bouygues Telecom net profit, revenue, EBITDA and operating profit – 2005 - 2006
Table 96 - Bouygues Telecom net profit, revenue, EBITDA and operating profit and annual change – Q1 2007
Table 97 – MNO, MVNO growth and MVNO market share – 2005 - 2007
Table 98 – Prepaid and contract subscribers and annual change (national) - 2005 - 2007
Table 99 – Mobile data revenue - 2002 - 2006
Table 100 – Mobile services revenues by sector and annual change – 2005 - 2006
Table 101 – Orange data revenue as % of total - 2005 - 2006
Table 102 – Data market revenue– 2002 - 2006
Table 103 – Subscriber monthly consumption of applications and annual change – June 2006
Table 104 – SMS traffic volume (national) – 2004 - 2007
Table 105 – SMS messages / month / user – 2004 - 2007
Table 106 – SMS user market growth – 2002 - 2007
Table 107 – Premium SMS market overview – 2007
Table 108 - SFR SMS and MMS usage and annual change – 2006
Table 109 – Mobile multimedia users and annual growth (metropolitan) – 2004 - 2006
Table 110 – MMS messages sent – 2005 - 2006
Table 111 – Country statistics Switzerland – 2007
Table 112 – Telecom revenue and investment statistics – 2006
Table 113 – Telephone network statistics – 2005
Table 114 – Internet user statistics – June 2007
Table 115 – Broadband statistics – 2007
Table 116 – Mobile statistics – June 2007
Table 117 – National telecommunications authorities
Table 118 – Fixed telephony connections – 2000 - 2004
Table 119 – Telecom sector revenue, profit and investment – 2000 - 2004
Table 120 – Swisscom net revenue, EBITDA and net income – 2004 - 2007
Table 121 – Swisscom financial statistics by sector – 2006 - 2007
Table 122 – Swisscom fixed revenue by segment – 2006 - 2007
Table 123 – Swisscom market share by sector – 2000 - 2004
Table 124 – Swisscom subscribers by sector – 2006 - 2007
Table 125 – TDC Switzerland financial statistics – 2006 - 2007
Table 126 – TDC Switzerland subscriber statistics – 2005 - 2007
Table 127 – Cablecom revenue, operating cash and annual change – 2005 - 2006
Table 128 – Cablecom operational data: home and subscriber statistics – 2005 - 2007
Table 129 – Fixed lines in service and teledensity – 1996 - 2005
Table 130 – ISDN subscribers – 1995 - 2007
Table 131 – Swisscom network infrastructure – 2004 - 2006
Table 132 – Internet users and penetration – 1996 - 2007
Table 133 – Total broadband subscribers and penetration – 2000 - 2007
Table 134 – Broadband penetration by technology – 2004 - 2006
Table 135 – Cablecom operational data: home and subscriber statistics – 2006 - 2007
Table 136 – Swisscom ADSL subscribers – 2003 - 2007
Table 137 – Swisscom dial-up subscribers – 2003 - 2007
Table 138 – TDC Switzerland Internet subscribers – 2006 - 2007
Table 139 – Broadband powerline connections – 2003 - 2004
Table 140 – Broadband satellite connections – 2003 - 2004
Table 141 – Forecast broadband subscriber growth – stronger market growth scenario – 2007 - 2011; 2017
Table 142 – Forecast broadband subscriber growth – weaker market growth scenario – 2007 - 2011; 2017
Table 143 – Broadcasting statistics - June 2007
Table 144 – Mobile operators, technology, subscribers and annual change – June 2007
Table 145 – Share of net adds by operator – 2005 - 2007
Table 146 – Share of subscribers by operator – 2005 - 2007
Table 147 – Mobile subscribers and penetration – 1995 - 2007
Table 148 – Mobile number portability – 2000 - 2004
Table 149 – Mobile termination charges – 2006; 2009
Table 150 – Swisscom Mobile ARPU and AMPU – 2006 - 2007
Table 151 – Swisscom Mobile revenue and EBITDA – 2003 - 2007
Table 152 – TDC Sunrise subscribers – 2004 - 2007
Table 153 – TDC Sunrise revenue; annual change – 2006 - 2007
Table 154 – Orange mobile subscribers, revenue – 2000 - 2007
Table 155 – Orange ARPU and network ARPU – 2003 - 2007
Table 156 – Orange data as % of revenue – 2003 - 2007
Table 157 – Swisscom mobile prepaid, postpaid subscribers – 2006 - 2007
Table 158 – Swisscom prepaid share of subscribers – 1998 - 2006
Table 159 – Swisscom Mobile SMS and MMS traffic – 2006 - 2007
Table 160 – MMS and premium MMS traffic (historic) – 2003 - 2004

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