Post on 04-Dec-2014
description
Milano, Sunday, April 9, 2023
Tavola rotonda“Reti fisse: quali prospettive?”
Guido Garrone - Fastweb
Research Partner Program
Alcatel & Politecnico di Milano
Mercoledi’, 10 maggio 2006
PG. 2
15.94016.10716.20816.19916.41316.38516.302
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
2002 2003 2004 2005 2006E 2007E 2008E
Access Voice Dial-up Broadband Data Services
1.100
2.500
4.600
6.800
8.200
9.500
10.500
0
2.000
4.000
6.000
8.000
10.000
12.000
2002 2003 2004 2005 2006E 2007E 2008E
Italian Fixed-line Telecom Market
Italian Annual TLC Fixed Spend (€ Mln)
Italian Broadband Connections (‘000)
1%
+30%
-19%
-3%
-3%
2002-2005
CAGR%
+84%
Broadband is the only
fast growing segment in
a broadly flat fixed
telecom market
Broadband growth
provides opportunity to
gain share of other
components of
business and
residential telecom
spending (Access,
Voice, Business data
services)
Broadband connections
should reach around
50% of market coverage
by 2008
2002-2005
CAGR%
PG. 3
Company profile
FASTWEB: an Italian worldwide-recognised pioneer in Broadband NGN Network Technologies and triple play services
Strong focus on Service and Technology Innovation Customer orientation Business sustainability
Tight relations with primary Italian and international ICT competence centers
Technology Manufacturers Research Centers
PG. 4
Telecom Italia Retail71%
FASTWEB11%
Other OLOs5%
Telecom Italia Wholesales
13%
Market penetration and IPTV leadership
Market Shares of Total Broadband Market 2005 Broadband Penetration on Covered Market (Sept. 2005)
100% = ~ 6.8 Mln BB ConnectionsTI
FASTWEB
(*) FASTWEB Penetration on Areas Covered since 2000
(**) FASTWEB Penetration on Areas Covered since 2002
(***) Overall FASTWEB Penetration
(***)
(**)
(*)
100% = Number of households passed
Tin.itAlice
~ 20%
~ 21%
~ 17%
~ 9%
~ 6%All Other OperatorsSource:
FASTWEB’s estimates based on companies’ financial reports
TI Retail includes Tin.it customers since 1Q 2005
TI Wholesale includes Other OLOs
World second largest IPTV provider in terms of customer penetration …
…first for TV ARPU…
World IPTV Top 5 ranking list
4.0%
8.0%
12.0%
20.0%
31.0%
FranceTelecom
Telefonica Free FASTWEB PCCW (HK)
TV ARPU: 140 €/year
TV ARPU: > 300 €/year
* Customers with at least one pay-TV service/broadband customer base; Data at December 2005 except PCCW at June 2005
World IPTV Top 5 ranking list
IPTV pay subs penetration on
broadband customer base*
PG. 5
FASTWEB’s numbers
2005 EoP Figures
Home Passed 8,500k (= 40% coverage)
Customers 714k
Revenues € 967Mln
EBITDA € 305 Mln
Market Cap (current) € 3,250 Mln
Cumulated Investments 2000-2005 Over € 3,000 Mln
Metropolitan areas covered 113
Network extension 20,000 km
PG. 6
1 3 517 11 15
23
45 4657 64 69
78
112123
143158
179 186197 194
228
259
287
1Q2000
2Q2000
3Q2000
4Q2000
1Q2001
2Q2001
3Q2001
4Q2001
1Q2002
2Q2002
3Q2002
4Q2002
1Q2003
2Q2003
3Q2003
4Q2003
1Q2004
2Q2004
3Q2004
4Q2004
1Q2005
2Q2005
3Q2005
4Q2005
2000-2005: Revenue* Growth and Milestones
Jan 2000: First business
customers
Oct 2000: Consumer
services launch
Mar 2001: VoD services launch
May 2001: Nationwide
service expansion
July 2001: xDSL service
launch
Nov 2001: Access to Socrate and € 955 Mln
financingNov 2002:
Videocommunication service launch
Sept 1999: Foundation
Mar 2003: VoD over ADSL
launch
June 2002: EBITDA
breakeven
* Revenues from Italian operations (€ Mln) - Pro-forma figures equal to Group revenues net of HanseNet revenues
Aug 2003: Full TV over ADSL launch
Dec 2004: Merger between e.Biscom and FastWeb and change
of company name in FASTWEB
Feb 2005: € 800 Mln Rights Issue
PG. 7
Convergences
IT
NETWORK
FIXED &
MOBILE
ACCESS
CONTENT &
MEDIACONSUMER
ELECTRONICS
VIDEO
PORTALS
ASP
ULL
MVNO
PG. 8
National Network Development
4.000.000 homes passed
18% of population
304 Central Offices in ULL
14 Metro Areas
15.600 km cable infr.
EOY2004+ 140%
1H2006
9.560.000 homes passed
45% of population
827 Central Offices in ULL
130 Metro Areas
21.500 km network infr.
3 Bln € of investments since 1999 for creation of own infrastructure
PG. 9
FASTWEB Broadband Network:Streamlined Architecture and Protocols
Fiber infrastructure Copper
DWDM
Physical Media
Transport
Voice, Video, Internet, VPNs, VAS
IP
Services
PG. 10
GR
FOPCPR MORE
AL
NO
BG
TO
BO
GE
RM
NA
MI
FIBA
RE
VRBG
GR
FOPCPR MORE
AL
NO
BG
TO
BO
GE
RM
NA
MI
BA
RE
PD
Customer CPE
Access
B/Bone
Customer CPE
Access
B/Bone
How is triple play possible on an all-IP Network?QoS enforcement: end-to-end requirement
Best Effort
Data Hi
Voice
Video
In a packet network, different traffic components compete for shared communication resources
Each communication trunk and network element contributes to determine the overall quality level of services offered to the Customer base
QoS enforcement policies must be implemented in both the Backbone and Access Layers
PG. 11
GR
FOPCPR MORE
AL
NO
BG
TO
BO
GE
RM
NA
MI
FIBA
RE
VRBG
GR
FOPCPR MORE
AL
NO
BG
TO
BO
GE
RM
NA
MI
BA
RE
PD
Customer CPE
Access
B/Bone
Customer CPE
Access
B/Bone
How is triple play possible on an all-IP Network?QoS enforcement: end-to-end requirement
Best Effort
Data Hi
Voice
Video
Traffic Classification at the Edge (source)Traffic Marking
IP (TOS Byte)Ethernet (Tag Control Info)MPLS (EXP Bits)ATM (CLP Bit, ATM Class)
Forwarding classes IdentificationTraffic Matching
Per Hop Behavior EnforcementCongestion Avoidance/Congestion ManagementMarking mantenance, extension, modification
PG. 12
Agnostic Access
Customer Site
Residential/SME FTTB - FTTH Customers
MiniPoP
BackboneLayer
AccessLayer
GigabitEthernet
GigabitEthernet
FTTO Top/Medium Business Customers
STM16 STM16
ResidentialConcentration
Layer
ResidentialAccessLayer
Point of Presence
Residential/SME xDSL Customers
MetroEthernetOr SDH Link Central Office
Wi Max
PG. 13
FTTx
xDSL
Internet/
VPN
Broadcast TV
Video on Demand/VCR
Video CommVoice
Agnostic Access
Full parity in services offered on both access technologies, to both Business and Residential Customers
Same Customer experience, different technology-dependent implementations
PG. 14
Networks and Services: Services evolution path
FASTWEB services evolution strategy Network-centric Services and Applications NGN network architecture (“a packet-based network able to provide services including
telecommunication services and able to make use of multiple broadband, QoS-enabled transport technologies and in which service related functions are independent from underlying transport related technologies. It offers unrestricted access by users to different service providers. It supports generalized mobility which will allow consistent and ubiquitous provision of services to users”)
Smooth transition to the IMS model
Major building blocks Platforms
Close integration of communication services (e.g. call control, user positioning and presence) with application logic
Dynamic management of Customers’ service profile Integration with external applications (business partners) thanks to standard interfaces
Terminals Commoditization (consumer electronics) User friendly interfaces, easy customer access to multimedia services Wireless connectivity Integration with Service Platforms thanks to the use of standard protocols (IP, SIP)
PG. 15
Fastweb’s NGN architectures evolutionPhase 0: IP Backbone IP Creation
IP Backbone
PG. 16
Fastweb’s NGN architectures evolution Phase 1: VoIP Infrastructure Creation
IP Backbone
H323 GW
H323 GW
H323 GW
H323 GK
H323 GK
PSTN Domain
H323 GK
PG. 17
Fastweb’s NGN architectures evolution Phase 2: Application Layer Creation
IP Backbone
H323 GW
H323 GW
H323 GW
H323 GK
H323 GK
PSTN Domain
H323 GK
Customer DB
SoftSwitch IP Centrex ®UM
PG. 18
Fastweb’s NGN architectures evolution Phase 3: SIP Introduction
IP Backbone
SIP GW
SIP GW
SIP GW
SIP REG
SIP REG
PSTN Domain
SIP REG
Customer DB
SoftSwitch IP Centrex ®UM
PG. 19
Fastweb’s NGN architectures evolution Phase 4: Enhanced SIP Applications
IP Backbone
SIP GW
SIP GW
SIP GW
SIP REG
SIP REG
PSTN Domain
SIP REG
Customer DB
SoftSwitch IP Centrex ®
SIP GW
SIP
IP-PBX
SIP PHONE
SIP MULTIMEDIA TERMINALS
UMPresence FMC
PG. 20
Fastweb’s NGN architectures evolutionPhase 5: Domains Interconnection
IP Backbone
SIP GW
SIP GW
SIP GW
SIP REG
SIP REG
PSTN Domain
SIP REG
Customer DB
SoftSwitch IP Centrex ®
SIP GW
SIP
IP-PBX
SIP PHONE
SIP MULTIMEDIA TERMINALS
IP Domain
UMPresence FMC
PG. 21
WiFi Videophone
WiFi PC
Broadband evolution: a Wireless Home
GSM/WiFi Phone
WiFi STB
W-HiFi
PG. 22
Wireless Home: video distribution
Video Server
HAG
Access Point
WiFi MIMO
Wireless Bridge
WiFi MIMO
PG. 23
Wireless Home: convergence
Video Server
SoftSwitch
HAG
Telefono
GSM/WiFi
Access Point
WiFi MIMO
Wireless Bridge
WiFi MIMO
PG. 24
Service and Technology Evolution
ADSL 2+
20 Mb/s
40% of COs already equipped, 70% by June, 100% by December
Available for new and existing customers at a one-off extra fee, no monthly price differentiation
1 Mb/s Upstream
Automatic upgrade for all ADSL customers free of charge (both ADSL and ADSL 2+)
New Full ULL Single/Double
Play Offer
No access fee, Broadband only, optional voice with FASTWEB phone at mobile tariffs
Fully Rechargeable
Option
Prepaid option not only for traffic, also for monthly fees
Replay TV
Last 3 days of TV programming available on demand
Wi-Fi Video
Complete Wireless Home Network
PG. 25
Service and Technology Evolution
HDTV
ADSL 2+ provides sufficient bandwidth
Monitoring real market demand FMC
IMS compliant network - simple integration with mobile services
Monitoring technology and regulation evolution
Wi-Max
Successfully trialled
Opportunity to further expand coverage – Nomadic and mobile applications?
Monitoring technology and licensing evolution
PG. 26
Service Platforms
Network InfrastructurePhysical InfrastructureTransport NetworkIP Network
CCSClass 5 S/S
OCSCIN SCP Messaging
SIPApp Svr
IPCentrex OCG
OM Portal DWH
IT Systems
Siebel SAP NetDB
NetworkManagement
SAS
ITO
Service Platforms & Systems
Provisioning
Billin
g
PG. 27
ipTV Service Infrastructures
PG. 28
Fastweb Labs
Test Plant
Apparati di utente residenziali
0
5000
10000
15000
20000
25000
30000
35000
2003 2004 2005
ANNI
TEST
Exponential volumes and complexity testing growth
• Fiber and DSL Residential and business access •System Test Automation triple play services
• IP Backbone• Business e Personal SIP based Voice platform•UM platform•Voice IP-centrex•Video Infrastructure
Full compliant network replica system
PG. 29
The role of service, systems and processes
Customer SatisfactionCustomer Satisfaction
BSS &OSS
End-to-end processes management
Multichannel CRM
Quality and performance monitoring
SupportService
BSS &OSS
Content Richness
Enhanced Customer experience
Simplicity / Usability
Multi-Terminal/Environment Accessibility