Summary

This report delivers a detailed snapshot of the strategies that operators around the globe – USA, Europe, Asia – are using to monetise their fibre networks.

  • What marketing strategies and business models have operators developed to earn a return on their investments in FTTH networks?
  • What quality of service options (speed, latency, data allowances) can be monetised?
  • What are the most winning pricing scenarios?
  • What are the challenges involved in selling bundles? Is premium content a vital ingredient? Is it an effective tool for upselling?
  • What are the medium-term scenarios for monetising fibre, with a view to upcoming 5G rollouts?

Table of contents

1. Executive Summary
1.1. Financing the network: strategic choices
1.2. Monetising quality of service
1.2.1. Adjusting pricing policies
1.2.2. Cross-selling and upselling

2. Methodology and definitions
2.1. General methodology of IDATE DigiWorld’s reports
2.2. Definitions

3. Network rollout strategies
3.1. Ultrafast broadband technologies
3.1.1. Fixed UFB
3.1.2. Mobile UFB
3.2. Operators’ technological choices
3.3. Coverage and subscribers: state of the art

4. Fibre monetisation strategies
4.1. Monetising quality of service
4.1.1. Monetising faster connections
4.1.2. Monetising symmetrical connections
4.1.3. Monetising low latency
4.1.4. Monetising higher data caps
4.1.5. Monetising enhanced connectivity using a B2B2C model
4.2. Adjusting pricing policies
4.2.1. Pricing strategies
4.2.2. Pricing scenarios for monetising fibre
4.3. Cross-selling
4.3.1. Monetising fixed calling
4.3.2. Mobile services
4.3.3. Content strategy
4.4. Monetising fibre with a view to 5G
4.4.1. Background
4.4.2. Increasing wireless speeds

5. Player strategies, in detail
5.1. KT: GIGAtopia
5.1.1. National situation
5.1.2. Network rollouts: GIGAtopia
5.1.3. Supply-side strategy
5.2. NTT
5.2.1. National situation
5.2.2. Rollout strategy
5.2.3. Supply-side strategy
5.2.4. Initiatives from the competition
5.3. China Telecom
5.3.1. National situation
5.3.2. Network development strategy
5.3.3. Strategy
5.4. Swisscom
5.4.1. Overall strategy
5.4.2. Rollout strategy superfast access: opting for G.fast
5.4.3. Product line strategy
5.5. Deutsche Telekom
5.5.1. National situation
5.5.2. Overall strategy
5.5.3. Rollout strategy: opting for VDSL
5.5.4. Product line strategy
5.6. Vodafone Germany
5.6.1. Overall strategy
5.6.2. Superfast access strategy
5.6.3. Product line strategy
5.6.4. Competitive positioning
5.7. Orange France
5.7.1. National situation: fierce competition over prices, coverage and quality of service
5.7.2. A clear fibre-centric (FTTH) strategy, and VDSL in rural areas
5.7.3. Product line strategy
5.7.4. The competition’s strategies
5.8. Telefónica
5.8.1. National situation
5.8.2. Network build-outs: the biggest network in Europe
5.8.3. Supply-side strategy
5.8.4. Content
5.8.5. Competing offers
5.9. BT
5.9.1. National situation
5.9.2. Rollout strategy
5.9.3. Product line strategy
5.9.4. Competing offers
5.10. Verizon
5.10.1. National situation
5.10.2. Verizon: FTTH market leader
5.10.3. Superfast access rollout strategy
5.10.4. Product line strategy
5.11. AT&T
5.11.1. Superfast access development strategy
5.11.2. Product line strategy
5.11.3. Competing offers

List of tables and figures

List of tables and figures

Tables
Table 1: Operators’ technological choices
Table 2: FTTH coverage and subscribers at the end of 2016
Table 3: Fibre trial speeds
Table 4: Summary of speeds offered by ISPs
Table 5: Broadband/superfast broadband pricing strategies
Table 6: Swisscom plans and pricing
Table 7: Bouygues Telecom pricing
Table 8: Free’s unlimited plan
Table 9: Operators’ UHD offers
Table 10: KT’s network rollouts and subscriber numbers
Table 11: KT’s Internet access plans
Table 12: Pricing for NTT broadband/superfast broadband access products
Table 13: China Telecom Beijing pricing, 2017
Table 14: Swisscom superfast access rollouts and subscriber numbers
Table 15: Swisscom pricing
Table 16: Orange FTTx rollouts and subscribers
Table 17: Bouygues Telecom pricing
Table 18: Telefónica FTTX rollouts and subscribers
Table 19: Telefónica’s broadband access products
Table 20: BT’s FTTx rollouts and subscribers
Table 21: BT’s line of access products
Table 22: BT triple play bundles
Table 23: Verizon FTTx rollouts and subscribers
Table 24: Verizon Fios line pricing
Table 25: Verizon Fios Gigabit product prices
Table 26: Prices for Verizon fixed broadband plans
Table 27: The different TV plans in Verizon bundles
Table 28: Verizon’s premium TV products
Table 29: AT&T FTTx rollouts and subscriber numbers
Table 30: AT&T’s product line

Figures
Figure 1: Evolution of average residential connection speeds
Figure 2: Evolution of broadband ARPU for Orange
Figure 3: Countries where Gigabit plans are available, as of March 2017
Figure 4: Telstra’s price range, by connection speed
Figure 5: Range of price points for superfast access plans
Figure 6: Range of price points for triple play bundles
Figure 7: Evolution of China Telecom’s ARPU, connection speeds, subscribers and revenue
Figure 8: Verizon pricing by connection speed
Figure 9: Swisscom bundle subscribers
Figure 10: Evolution of Swisscom’s ARPU
Figure 11: Comparison of the evolution of BT’s broadband and TV subscriber numbers, consumer ARPU and content acquisition costs per TV subscriber
Figure 12: Evolution of BT’s broadband market share
Figure 13: Growth of KT’s broadband, TV, and UFB/4K subscriber numbers
Figure 14: KT’s media revenue growth, 2015-2016
Figure 15: Evolution of KT’s Internet subscriber numbers and revenue
Figure 16: 2016/2015 growth rate for KT’s different businesses
Figure 17: NTT FTTH subscriber growth
Figure 18: Evolution of NTT’s FTTH subscriber ARPU
Figure 19: NTT’s FTTH TV subscriber numbers
Figure 20: China Telecom’s Internet subscriber growth
Figure 21: Evolution of average bitrates and ARPU
Figure 22: Evolution of China Telecom’s broadband and IPTV revenue
Figure 23: ARPU growth for Swisscom bundles
Figure 24: Broadband subscriber numbers for Germany’s top ISPs
Figure 25: Growth of Orange FTTH/VDSL subscriber numbers
Figure 26: Evolution of Orange subscriber numbers
Figure 27: Evolution of Movistar FTTH subscriber numbers and coverage
Figure 28: Evolution of Movistar consumer revenue
Figure 29: Breakdown of broadband/superfast broadband subscribers in the UK by operator
Figure 30: Growth of BT broadband/superfast broadband subscriber numbers and ARPU
Figure 31: Evolution of Openreach fibre subscribers and CAPEX
Figure 32: Breakdown of fixed broadband and superfast subscribers in the United States by operator
Figure 33: Evolution of connection speeds in the United States
Figure 34: Growth of Verizon broadband/superfast broadband subscriber numbers and revenue
Figure 35: New AT&T video subscribers

Geographic area

Asia-Pacific Europe North America
  • United States

Players

  • AT&T
  • BT
  • China Mobile Tie Tong
  • China Telecom
  • Comcast
  • Deutsche Telekom
  • Korean Telecom
  • NTT
  • Orange France
  • Singapore Republic
  • Swisscom
  • Telefónica
  • Telstra
  • Verizon
  • Vodafone Deutschland

Slideshow

  • Main findings – Competitive pressure pushing operators to seek to monetise fibre beyond their core business
  • Fibre monetisation scenarios
  • Monetising quality of service
  • Adjusting pricing policies
  • Up-selling and cross-selling
  • Introducing new business models
  • Monetising fibre with a view to 5G

Other details

  • Reference: M17530MRA
  • Delivery: on the DigiWorld Interactive platform
  • Languages available: French, English
  • Tags: 5G, fibre, fibre monetisation, network rollout, quality of service, Ultrafast broadband technologies

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