Global - Industry - Wholesale Markets

Synopsis

Wholesale Internet (IP Transit) bandwidth prices continued to fall in 2009 due to declining unit costs and rising competition. Despite the economic crisis, bandwidth price declines have not yet sped up – due partly to yearly bandwidth contracts that are still to be renewed. The growing Internet economy will ensure that the increased demand for wholesale IP bandwidth will continue in the longer term, with a forecast growth of over 30% through to 2015. A number of countries around the world now operate successful FttX networks based on wholesale models. This report provides an overview of the wholesale market with a focus on international wholesale. It also includes case studies on developments in Australia, Japan and Europe.

Table of Contents

• 1. Synopsis
  
• 2. International wholesale market overview
  
  • 2.1 Consolidation continues
    
  • 2.2 Unbundling evens the score
    
• 3. Market analyses
  
  • 3.1 Starts on the wrong footing
    
    • 3.1.1 Incumbents should be part of the solution not of the problem
      
    • 3.1.2 Problems started back in 1865
      
  • 3.2 Shouldn’t we modernise the regulations?
    
    • 3.2.1 Some incumbents have seen the light
      
    • 3.2.2 Bill and Keep is showing the way
      
    • 3.2.3 Termination fees are hampering growth
      
    • 3.2.4 Peering instead of arbitrage
      
  • 3.3 Cooperation brings back trust in the market
    
    • 3.3.1 Interconnect will always require regulatory oversight
      
    • 3.3.2 Digital Economy = value add, not commoditisation
      
• 4. Wholesale customer categories
  
  • 4.1 Value-add based on IP and broadband
    
  • 4.2 Mobile wholesale interconnection
    
    • 4.2.1 Mobile wholesale remains underdeveloped
      
  • 4.3 The effects of VoIP
    
• 5. Key wholesale services
  
  • 5.1 Unconditioned Local Loop Services (ULLS)
    
  • 5.2 Line sharing or spectrum sharing
    
  • 5.3 Local Carriage Service (LCS)
    
  • 5.4 Unbundled BitStream (UBS)
    
  • 5.5 UBS vs ULL
    
  • 5.6 Naked DSL
    
• 6. Dark fibre
  
  • 6.1 Global infrastructure nearing collapse
    
  • 6.2 Wild growth in local access
    
  • 6.3 Dark fibre providers setting the scene
    
  • 6.4 Expect the bust in 2012/2013
    
• 7. National wholesale markets
  
  • 7.1 Facilities Based Carriers
    
  • 7.2 Switch Based Resellers
    
  • 7.3 Switchless Resellers
    
• 8. Case studies
  
  • 8.1 Australia - Open Access Principles
    
    • 8.1.1 Wholesale Industry Group (WIG)
      
    • 8.1.2 Wholesale Access Principles
      
  • 8.2 Japan - DSL vs FttH
    
  • 8.3 Europe - wholesale fibre access
    
    • 8.3.1 Overview
      
    • 8.3.2 Sweden
      
    • 8.3.3 France
      
    • 8.3.4 Spain
      
    • 8.3.5 Switzerland
      
  • 8.4 KPN, the Netherlands
    
    • 8.4.1 Background
      
    • 8.4.2 Wholesaling
      
• 9. Related reports
  

• Table 1 - Bandwidth price declines by percentage in Sao Paulo; Tokyo; London; Bucharest; San Francisco – 2007 – 2008
• Table 2 – KPN wholesale operating statistics – 2007 - 2008

• Exhibit 1 – Keeping the Internet up to speed
• Exhibit 1 – Blame it all on Prussia