Information Memorandum. Annex D: Overview of the Danish telecoms market. March 2012

Transcription

1 800 MHz Auction Auction of frequencies in the frequency bands MHz and MHz Information Memorandum Annex D: Overview of the Danish telecoms market March 2012 Issued by The Danish Business Authority Denmark

2 Annex D: Overview of the Danish telecoms market This annex provides an overview of the Danish economy and demographics, the fixed telecommunications market, mobile telecommunications market and the wireless broadband market. D.1 The Danish economy and demographics Key indicators for the Danish economy Population (1 January 2011) GDP (2010) DKK billion GDP per capita (2010) DKK Total area km 2 Real GDP growth per capita (2010) 2.1% Unemployment rate (2010) 6.0% Inflation rate, consumer prices (2010) 2.3% Balance of payments, current account, net (2010) 5.5% of GDP Figure D.1: Key indicators for the Danish economy [Source: Statistics Denmark, Statistical Yearbook, 2011] Urban/rural area Population % of population Cumulative % of population Greater Copenhagen % 21.6% Other urban areas with: over inhabitants % 30.9% inhabitants % 57.7% inhabitants % 79.4% inhabitants % 83.4% inhabitants % 86.9% Rural districts % 99.8% No fixed address % 100.0% Figure D.2: Danish population distribution per 1 January 2011 [Source: Statistics Denmark] Page 2

3 D.2 The Danish fixed telecoms market Operator Market share TDC 79,8 % Telia 10,3 % Telenor 5,9 % Others 4,0 % Figure D.3: Market shares of fixed line operators at the end of the first half of 2011 [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] Denmark has one of the highest broadband penetration rates in the world, at 38.5 per 100 inhabitants at the end of the first half of Figure D.4 provides key indicators for the Danish fixed telecoms sector. Category 2008H2 2009H1 2009H H 20102H 2011H1 Subscriber lines fixed network (1000s) Subscriber lines per 100 inhabitants 45,2 40,8 37,2 34,4 32,3 29,7 Outgoing fixed line traffic including IP telephony (million minutes) Outgoing fixed line traffic excluding IP telephony (million minutes) Broadband subscriptions (1000s) Broadband subscriptions per 100 inhabitants 36,8 37,2 37,6 38,1 38,7 38,5 xdsl subscriptions (1000s) Cable modem subscriptions (1000s) IP telephony subscriptions IP telephony traffic (million minutes) Figure D.4: Key indicators for fixed telecoms sector in [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] A number of different technologies are being offered in the Danish market, including digital subscriber lines (DSL), cable, satellite and fibre-to-the-home/building/cabinet (collectively referred to as FTTx). As of July 2011, approximately 9% of broadband subscribers were connected using FTTx technologies. Just under 90% of these are fibre-to-the-home (FTTH) connections. Figure D.5 below shows the growth in FTTx connections in Denmark. Page 3

4 Fibre subscriptions (1.000) % 9% 8% 7% 6% 5% 4% 3% 2% 1% 0 2. H H H H H H H H % Fibre subscriptions to business customers Fibre subscriptions to private customers The fibre market's share (excluding FibreLAN) of the total broadband market Figure D.5: The Danish fibre market from 2007 to 2011 [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] To date, most of the FTTH connections in Denmark have been supplied by utility companies. Figure D.6 below shows the market shares of the principal service providers. FTTH provider Market share SE (SydEnergi) 18,8% Waoo! (Waoo!, Dansk bredbånd) 15,9% EnergiMidt 15,2% TRE-FOR Bredbånd 12,2% Altibox 5,5% NRGi 5,1% Bredbånd Nord 5,0% TDC (Dansk KabelTV, TDC, YouSee) 4,9% Østjysk Energi 4,3% Sydfyns Intranet 3,5% Verdo Tele 3,2% Øvrige 6,3% I alt 100,0 % Figure D.6: Market shares of the principal FTTH service providers in Denmark at the end of the first half of 2011 [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] Page 4

5 D.3 The Danish mobile telecommunications market The mobile market in Denmark has grown steadily in recent years, increasing from 5.5 million subscribers (100 subscriptions per 100 inhabitants) in 2005 to a level of almost 7.9 million subscribers (141 subscriptions per 100 inhabitants) by the end of the first half of Figure D.7 provides key indicators for the Danish mobile telecoms sector. Category 2008H2 2009H1 2009H2 2010H1 2010H2 2011H1 Mobile subscriptions (1000s) Mobile subscriptions per 100 inhabitants Mobile broadband subscriptions 1 (1000s) Outgoing mobile traffic (million minutes) 124,6 127,1 134,1 138,1 140,1 141, SMS sent (millions) MMS sent (1000s) Portings mobile (1000s) Figure D.7: Key indicators for mobile telecoms sector in Denmark [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] There are currently four mobile network operators in Denmark but more than 30 mobile service providers including mobile virtual network operators (MVNOs). Figure D.8 below shows the number of mobile telephony subscriptions (exclusive subscriptions for telemetry and data-only subscriptions for mobile broadband) and the market shares for the principal mobile service providers. Mobile service provider Subscriptions (1000s) Market share 2010H1 2010H2 2011H1 2010H1 2010H2 2011H1 TDC ,8% 41,8% 43,9% Telenor ,2% 26,4% 25,8% Telia ,8% 18,8% 18,2% Hi3G ,9% 5,7% 6,2% Lebara ,1% 3,1% 3,0% Others ,2% 4,1% 2,8% Total ,0% 100,0% 100,0% Pre-paid ,6% 14,5% 14,4% Figure D.8: Subscriptions and market shares for the principal mobile service providers in Denmark [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] 1 Includes data-only subscriptions in the form of data expansion cards and USB modem for computers. Page 5

6 Three of the existing mobile operators use spectrum in both the 900 MHz and 1800 MHz bands, although their assignments vary. On the basis of a change to the GSM Directive, the National IT and Telecom Agency issued a Decision on 23 December 2009 regarding the re-farming of the existing licences in the 900 MHz and 1800 MHz bands. An auction was held over the re-farmed frequencies in the 900 MHz and the 1800 MHz bands and the licences were awarded to Hi3G in October Figure D.9 below shows the current spectrum assignments to each operator in the 900 MHz and 1800 MHz bands. Mobile service provider 900 MHz 1800 MHz TDC 2 9,0 MHz 2 21,8 MHz Telenor 2 9,0 MHz 2 19,4 MHz Telia Nättjänster Norden 2 11,8 MHz ,6 MHz Hi3G 2 5,0 MHz 2 10,0 MHz Figure D.9: Existing spectrum assignments in the 900 MHz and the 1800 MHz bands [Source: the National IT and Telecom Agency, 2010] Currently each of the five UMTS mobile operators, Telenor, Telia Nättjänster Norden, Hi3G and TDC, have assignments of 2 15 MHz of UMTS paired spectrum in the 1900 MHz and the 2100 MHz bands and 1 5 MHz of unpaired spectrum in the 1900 MHz band 3. Furthermore, in June 2010 the National IT and Telecom Agency has issued licences in the frequency bands MHz ( the 2.5 GHz band ) on the basis of an auction. Figure D.10 below shows the spectrum assigned to each operator in the 2.5 GHz band. Mobile service provider Hi3G TDC Telenor Telia Nättjänster Norden 2.5 GHz 2 10 MHz paired spectrum and 25 MHz unpaired spectrum 2 20 MHz paired spectrum 2 20 MHz paired spectrum and 10 MHz unpaired spectrum 2 20 MHz paired spectrum and 15 MHz unpaired spectrum Figure D.10: Spectrum assignments in the 2.5 GHz band [Source: the National IT and Telecom Agency, 2010] 2 It is noted, however, that Telia in Greater Copenhagen must respect Banedanmark s usage of 1 MHz (including guardband) to the s-train radio. When Banedanmark s licence in the 900 MHz band expires, is revoked or is returned, Telia will dispose of 11.8 MHz in the entire country. 3 It may also be mentioned that Nordisk Mobiltelefon Danmark A/S has a CDMA licence in the 450 MHz band. Page 6

7 D.4 The wireless broadband market A number of wireless broadband networks currently operate in Denmark. These are used to offer both mobile and fixed wireless broadband. This section provides a brief overview of the fixed wireless broadband market The mobile broadband market in Denmark continues to grow rapidly in 2011 (see Figure D.11 below). The total number of mobile broadband subscriptions exceeded 4 million by the end of the first half of Amongst these, almost were dataonly subscriptions, in the form of data expansion cards and USB modem for computers. Mobile broadband - subscriptions (1.000) H1 2010H2 2011H1 Dedicated data subscriptions Datasubscriptions which also allow speech Figure D.11: Wireless broadband subscribers [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] The volume of broadband data traffic generated by mobile users in Denmark has risen rapidly million megabytes of data (excluding SMS and MMS) were generated by mobile broadband users in the first half of It is estimated that more than 82% of usage was generated by data-only subscriptions. Figure D.12 shows the number of subscriptions, traffic generated and market shares for the principal service providers of data-only mobile broadband subscriptions, while Figure D.13 shows the same data for the principal service providers of mobile broadband subscriptions that include voice. Page 7

8 Mobile broadband service provider Subscriptions (1000s), 2010H2 Market share of subscriptions Traffic, total for 2010H2 (million MB) Market share of traffic TDC ,3 % ,9 % Hi3G ,2 % ,7 % Telenor ,8 % ,8 % Telia ,6 % ,6 % Others 10 1,2 % 84 0,9 % Total % % Figure D.12: Mobile broadband subscriptions, data-only subscriptions, data traffic and market shares for the principal service providers in Denmark, first half of 2011 [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] Mobile broadband service provider Subscriptions (1000s), 2010H2 Market share of subscriptions Traffic, total for 2010H2 (million MB) Market share of traffic TDC ,7 % ,7 % Telenor ,1 % ,4 % Telia ,7 % ,5 % Hi3G ,9 % ,9 % Others 52 1,6 % 8 0,4 % Total % % Figure D.13: Mobile broadband subscriptions, data subscriptions including voice, data traffic and market shares for the principal service providers in Denmark, first half of 2011 [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] The majority of fixed wireless broadband connections in Denmark are provided by WiMAX networks. It is estimated that such networks are currently available to around 90% of the Danish population. Figure D.14 below shows the number of subscriptions and market share of the principal WiMAX service providers. WiMAX operator Subscriptions (1000s) Market share ELRO 38 98,8 % Others 0 1,2 % Total ,0 % Figure D.14: Subscriptions and market share of the principal WiMAX service providers in Denmark first half of 2011 [Source: Telecom Statistics first half of 2011, the Ministry of Business and Growth] 4 The total is due to rounding up to the nearest thousand. Page 8