Internet access services Leased line and data transmission services
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1 Internet access services Leased line and data transmission services - statistical data report - (updated based upon the statistical data corresponding to 1 January 30 June 2011 reporting period) ANCOM/Regulation Executive Division/Economic Regulation Division/Market Studies and Analyses Unit sasp@ancom.org.ro Web:
2 Contents Introduction and methodology 3 Internet access services 4 1. Overview of the market structure and dynamics number of providers, service categories 4 2. Broadband Internet access connections provided at fixed locations 8 3. Broadband Internet access connections provided at fixed locations by means of FTTx technologies Active Internet access connections provided at mobile locations 16 Leased line and data transmission services 18 ANCOM Services of Internet access, leased lines and data transmission in the first semester of
3 Introduction and methodology Periodically (every semester), ANCOM publishes - on its website - reports on the Romanian electronic communications sector. These reports aim at showing both the global trends in the electronic communications sector and the trends of each category of electronic communications services. The report on the Internet access services, leased line services and data transmission services, updated according to the statistical data for the 1 January 30 June 2011 timeframe, as well as on their evolution, has been elaborated based upon the statistical data reported half-yearly, respectively annually, by the providers of mobile telephone services, who have the obligation to send ANCOM the figures corresponding to the indicators of service categories according to the ANCOM President s Decision no. 1167/2011 1, as follows: - until the 31 st of May, for the reporting period spanning from January 1 st through December 31 st, as far as the statistical data on revenues and investments provided for in Annexes 1-14 are concerned; - until the 10 th of August, for the reporting period spanning from January 1 st through June 30 th, respectively until the 10 th of February, for the reporting period spanning from July 1 st through December 31 st, in the case of the other statistical data specified in Annexes 1-14, respectively in Annex 15. As for the data processing, analysis and presentation, the dynamics of the indicators are highlighted half-yearly and, in the case of the providers who sent rectifications to the statistical data reported to the Authority for the previous periods, the report includes the correspondingly updated/corrected indicators. ANCOM hereby expresses its gratitude to the providers of Internet access services, leased line services and data transmission services who reported statistical data to the Authority, thus contributing to the elaboration of this report, and invites the interested persons to submit comments on any aspect that could improve the accuracy of the collected information or the data processing, analysis or presentation process, by , to sasp@ancom.org.ro. 1 The ANCOM President s Decision no. 1167/2011 on the reporting of statistical data by the providers of electronic communications networks and services, published in the Romanian Official Journal, Part I, no. 321 of 10 May 2011; ANCOM Services of Internet access, leased lines and data transmission in the first semester of
4 Internet access services 2 1. Overview of the market structure and dynamics number of providers, service categories Table 1.1. Number of active Internet access providers, itemised by access means. Evolution between and Indicator Total no. of active providers 3, of which: 1,035 1,066 1, ,012 - fixed broadband access services 4, of which: 1,033 1,064 1, ,010 a) coaxial cable access, of which: a1) exclusively on coaxial cable n.a. n.a. n.a. n.a. 25 a2) FTTB+coaxial cable n.a. n.a. n.a. n.a. 3 a3) FTTC+coaxial cable n.a. n.a. n.a. n.a. 6 a4) FTTN+coaxial cable n.a. n.a. n.a. n.a. 12 b) fiber optic access (FTTH) c) radio access, of which: c1) exclusively on radio n.a. n.a. n.a. n.a. 191 c2) FTTB+radio n.a. n.a. n.a. n.a. 8 c3) FTTC+radio n.a. n.a. n.a. n.a. 7 c4) FTTN+radio n.a. n.a. n.a. n.a. 13 d) xdsl access, of which: d1) exclusively on xdsl n.a. n.a. n.a. n.a The statistical data were reported by 1,012 Internet access providers in the retail market, i.e. 99% of the total no. of active providers as of 30 June 2011; 3 The total no. of providers includes the fixed Internet dedicated access providers and, respectively, the mobile Internet access providers; 4 Certain fixed broadband Internet access providers offer services on several support types; ANCOM Services of Internet access, leased lines and data transmission in the first semester of
5 d2) FTTB+xDSL n.a. n.a. n.a. n.a. 1 d3) FTTC+xDSL n.a. n.a. n.a. n.a. 1 d4) FTTN+xDSL n.a. n.a. n.a. n.a. 0 e) UTP/FTP cable access, of which: e1) exclusively on UTP / FTP cable n.a. n.a. n.a. n.a. 432 e2) FTTB+UTP / FTP cable n.a. n.a. n.a. n.a. 242 e3) FTTC+UTP / FTP cable n.a. n.a. n.a. n.a. 194 e4) FTTN+UTP / FTP cable n.a. n.a. n.a. n.a mobile access services (via HSCSD, GPRS, EDGE, CDMA/EVDO, 3G technology) Exhibit 1.1. Evolution of the number of active Internet access providers: ,100 1, ,035 1,033 1,066 1,062 1,064 1, ,012 1, Total no. of active Internet access providers, of which: No. of fixed broadband Internet access providers ANCOM Services of Internet access, leased lines and data transmission in the first semester of
6 Table 1.2. Dynamics of the number of Internet access connections, by connection modality: Indicator million million million FIXED CONNECTIONS Fixed broadband Internet access connections ACTIVE MOBILE CONNECTIONS HSCSD, GPRS, EDGE, CDMA, EVDO, 3G 6 active connections, of which: - EDGE, CDMA, EV-DO, 3G active broadband connections Exhibit 1.2. Evolution of the no. of Internet access connections, by connection modality: fixed broadband connections mobile broadband connections - prepaid cards mobile broadband connections - subscriptions 5 Paid fixed Internet access connections, corresponding to the no. of Internet service subscriptions, are included; 6 Including the paid mobile Internet access connections, corresponding to the no. of Internet service subscriptions, to the no. of mobile telephony users who had a paid data extra-option activated, to the no. of prepaid cards for Internet exclusive access and, respectively, to the no. of mobile telephony users with subscription/prepaid cards who had achieved chargeable data traffic/had accessed at least once, for a charge, the Internet access services during the reporting period, in case of activating the data option free of charge, automatically or upon request; ANCOM Services of Internet access, leased lines and data transmission in the first semester of
7 Exhibit 1.3. Concentration level of the market for Internet access services 7, according to the market shares calculated based on the total number of broadband Internet access connections: first semester 2010 first semester ,000 4,500 4,213 4,262 4,536 4,000 3,500 3,000 2,500 2,770 2,770 2,866 2, HHI - fixed broadband Internet access connections HHI - mobile broadband Internet access connections Table 1.3. Internet access services provided in hotspot locations Indicator No. of hotspot locations with Wi-Fi Internet access (thousand) The market concentration level has been calculated based on the Herfindahl Hirschman index (HHI) and represents the sum of the square of the providers market shares (based on the number of Internet access connections). If HHI<1,000, the market concentration level is low; if 1,000<HHI<1,800, the market concentration level is average; if HHI>1,800, the market concentration level is high; if HHI=10,000 there is a monopoly; ANCOM Services of Internet access, leased lines and data transmission in the first semester of
8 2. Broadband Internet access connections provided at fixed locations Table 2.1. Structure of the total no. of fixed broadband Internet access connections, by support: Indicator million % million % million % million % million % Total no. of fixed broadband Internet access connections, of which: a) coaxial cable, of which: FTTx + coaxial cable n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a b) FTTH c) radio FTTx + radio n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a d) xdsl FTTx + xdsl n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a e) UTP/FTP cable FTTx + UTP/FTP n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a f) other means Fixed SYMMETRICAL broadband Internet access connections FTTx (FTTH/B/C/N) fixed broadband Internet access connections n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Download and upload traffic (TB) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1.1 n/a 8 For the period, the fiber optic connections reported under this indicator are mostly FTTH connections; the FTTN/FTTC/FTTB connections are reflected in the reportings made per each type of support which ensures the access to the end-user, respectively by means of the coaxial cable, UTP/FTP cable, radio, xdsl or other means; 9 The indicator encompasses the no. of connections using, as support, other access technologies: satellite etc.; ANCOM Services of Internet access, leased lines and data transmission in the first semester of
9 Exhibit 2.1. Structure of the total no. of fixed broadband Internet access connections, by support, during and share as of % 12.9% 2.4% % 29.9% UTP / FTP cable xdsl coaxial cable FTTH, radio, satellite coaxial cable FTTH xdsl UTP/FTP cable other supports Exhibit 2.2. Structure of the fixed broadband Internet access connections, by use of the FTTx technology, as of UTP/FTP cable xdsl coaxial cable FTTH 0.08 radio 0.02 other means exclusively FTTx +. ANCOM Services of Internet access, leased lines and data transmission in the first semester of
10 Table 2.2. Dynamics of the no. of fixed broadband Internet access connections, by support: Indicator Total no. of fixed broadband Internet access connections, of which: million million million million million million a) coaxial cable b) FTTH c) radio d) xdsl (twisted metallic wires, other supports) e) UTP/FTP cable f) other means Table 2.3. Evolution of the penetration rate of fixed broadband Internet access connections: Indicator Total no. of fixed broadband Internet access connections (million) Penetration rate per 100 inhabitants No. of fixed broadband Internet access connections provided to residential customers (million) Penetration rate per 100 households The fiber optic connections reported under this indicator are mostly FTTH connections; the FTTN/FTTC/FTTB connections are reflected in the reportings made per each type of support ensuring the access to the end-user, respectively by means of the coaxial cable, UTP/FTP cable, radio, xdsl or other means; 11 The indicator encompasses the no. of connections using, as support, other access technologies: satellite etc.; 12 Penetration rate of the broadband Internet dedicated access connections per 100 inhabitants = no. of broadband Internet dedicated access connections /Romania s population*100; population = 21,528,627 as of 30 June 2008, 21,504,442 as of 31 December 2008, 21,498,616 as of 30 June 2009, 21,469,959 as of 31 December 2009, 21,469,959 as of 30 June 2010, 21,431,298 as of 31 December 2010, respectively 21,413,813 as of 30 June 2011 (Source: INS); 13 Penetration rate of the broadband Internet dedicated access connections per 100 households = no. of broadband Internet dedicated access connections corresponding to residential endusers/no. of households in Romania *100; no. of households = 7,320,202 (source: INS, Population and household census, March 2002); ANCOM Services of Internet access, leased lines and data transmission in the first semester of
11 Exhibit 2.3. Evolution of the penetration rate of fixed broadband Internet access connections: Penetration rate per 100 inhabitants Penetration rate per 100 households Table 2.4. Structure of the total no. of fixed broadband Internet access connections, by customer category. Evolution between and Indicator million million million million million Total no. of fixed broadband Internet access connections (million), of which: a) residential subscribers (million) b) business subscribers (million) Total no. of fixed SYMMETRICAL broadband Internet access connections n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n/a (million), of which: a) residential subscribers (million) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n/a b) business subscribers (million) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n/a ANCOM Services of Internet access, leased lines and data transmission in the first semester of
12 Exhibit 2.4. Structure of the total no. of fixed broadband Internet access connections, by customer category and access support as of % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3.2% 4.5% 16.3% 9.6% 96.8% 95.5% 41.9% 89.4% 97.5% 90.4% 83.7% 58.1% 10.6% 2.5% UTP/FTP cable coaxial cable xdsl radio FTTH other supports* Total residential connections business connections * including satellite Table 2.5. Structure of the total no. of fixed broadband Internet access connections, by customer category and urban/rural area, itemized by best-effort 14, as of Total fixed Internet access connections >144kbps <2Mbps 2Mbps <10Mbps 10Mbps <30Mbps 30Mbps <100Mbps 100Mbps total residential users business users total urban rural total the maximum speed that may be reached at a given time, specified in the contracts concluded with the end-users; namely, the operators reported the connections for which the channel bandwidth is not guaranteed, but varies due to endogeneous or exogeneous factors (number of users, traffic achieved, atmospherical conditions etc.; where the contracts concluded with the endusers for the symmetrical band connections specify only the guaranteed speed, the respective connections were reported depending upon it. ANCOM Services of Internet access, leased lines and data transmission in the first semester of
13 Exhibit 2.5. Structure of the total no. of fixed broadband Internet access connections, by customer category and urban/rural area, itemized by best-effort speed, as of % 90% % % 81% 15% 85% 17% 83% >144kbps <2Mbps 2Mbps <10Mbps 10Mbps <30Mbps 2% 98% 30Mbps <100Mbps 1% 99% 100Mbps total % 72% 40% 60% 15% 85% >144kbps <2Mbps 2Mbps <10Mbps 10Mbps <30Mbps 3% 97% 30Mbps <100Mbps 2% 98% 100Mbps 81% total residential customers business customers urban rural Exhibit 2.6. Structure of the total no. of fixed broadband Internet access connections, by customer category and urban/rural area, itemized by best-effort speed, as of % 19% 100M bps 15% >144kbps <2M bps 2% M bps <10M bps 37% % 3% 81% 30M bps <100M bps 28% 97% 0.00 residential customers business customers total rural urban urban rural 10M bps <30M bps 18% ANCOM Services of Internet access, leased lines and data transmission in the first semester of
14 3. Broadband Internet access connections provided at fixed locations by means of FTTx technologies 15 Share of FTTx connections within the total connections = 88% Table 3.1. Structure of the total number of broadband Internet access connections provided at fixed locations by means of FTTx technologies, itemised by technology and best-effort speed 16, as of FTTx >144kbps <2Mbps 2Mbps <10Mbps 10Mbps <30Mbps 30Mbps <100Mbps 100Mbps total connections FTTH FTTB FTTC FTTN total FTTx connections total broadband connections Table 3.2. Structure of the total number of broadband Internet access connections provided at fixed locations by means of FTTx technologies, by technology and customer category, as of FTTx residential business total connections connections connections FTTH FTTB FTTC FTTN total FTTx connections total broadband connections the FTTx technologies refer to FTTH/FTTB/FTTC/FTTN, depending on the proximity of the fiber optic to the end-user s location, as follows: FTTH (Fiber to the Home) = when the fiber optic segment reaches the end-user s dwelling/location (fiber optic is at least 2 metres away from the end-user s dwelling/location); FTTB (Fiber to the Building) = when the fiber optic segment reaches the end-user s building/boundary of the building, with the access being ensured via coaxial cable, UTP/FTP cable, radio, pairs of twisted metallic wires (e.g. VDSL) or via other means; FTTC (Fiber to the Cabinet/Curb) = when the fiber optic segment reaches the street cabinet - fiber optic is at less than 300 m away from the end-user s premises, with the final connection being ensured via coaxial cable, UTP/FTP cable, radio, pairs of twisted metallic wires (e.g. VDSL) or via other means; FTTN (Fibre to the Node) = when the fiber optic segment reaches the street cabinet - fiber optic is at more than 300 m away from the end-user s premises, with the final connection being ensured via coaxial cable, UTP/FTP cable, radio, pairs of twisted metallic wires (e.g. VDSL) or via other means. 16 the maximum speed that may be reached at a given time, specified in the contracts concluded with the end-users; namely, the operators reported the connections for which the channel bandwidth is not guaranteed, but varies due to endogeneous or exogeneous factors (number of users, traffic achieved, atmospherical conditions etc.; where the contracts concluded with the endusers for the symmetrical band connections specify only the guaranteed speed, the respective connections were reported depending upon it. ANCOM Services of Internet access, leased lines and data transmission in the first semester of
15 Exhibit 3.1. Structure of the total number of broadband Internet access connections provided at fixed locations by means of FTTx technologies, by technology type, as of exclusively radio 0.02; 0.53% exclusively UTP/FTP 0.11; 3.61% exclusively coaxial cable 0.25; 8.04% exclusively other means ; 0.01% exclusively xdsl ; 0.02% FTTx 2.75; 87.81% FTTH 0.08; 2.43% FTTN 0.11; 3.41% FTTB 1.47; 46.80% FTTC 1.10; 35.16% ANCOM Services of Internet access, leased lines and data transmission in the first semester of
16 4. Active mobile Internet access connections Table 4.1. No. of active mobile Internet access providers, by technology. Evolution between and Indicator No. of mobile Internet access providers, by technology, of which: a) HSCSD access b) GPRS access c) EDGE access d) CDMA/EVDO access e) 3G access Table 4.2 No. of active mobile Internet access connections, by connection modality and type of service. Evolution between and Indicator Active connections for mobile access via HSCSD, GPRS, EDGE, CDMA, EVDO, 3G mobile Internet access subscriptions and mobile telephony users with Internet access subscription, of which: - broadband connections (via EDGE, CDMA, EV-DO, 3G), of which: a) on the mobile telephone, of which: n.a. n.a. n.a n/a subscription/(extra)options dedicated for Internet access million million million n.a. n.a. n.a n/a against payment per consumption unit n.a. n.a. n.a n/a b) by means of modems/cards/usb n.a. n.a. n.a n/a Active connections for mobile access via HSCSD, GPRS, EDGE, CDMA, EVDO, 3G prepaid cards for Internet access and mobile telephony users holding prepaid cards with Internet access, of which: broadband connections (via EV-DO, EDGE, 3G), of which: a) on the mobile telephone, of which: n.a. n.a. n.a n/a subscription/(extra)options dedicated for Internet access n.a. n.a. n.a n/a against payment per consumption unit n.a. n.a. n.a n/a b) by means of modems/cards/usb n.a. n.a. n.a n/a ANCOM Services of Internet access, leased lines and data transmission in the first semester of
17 Table 4.3 Traffic of the active mobile Internet access connections, by connection modality, as of Indicator Active connections for mobile access via HSCSD, GPRS, EDGE, CDMA, EVDO, 3G mobile Internet access subscriptions and mobile telephony users with Internet access subscription / prepaid cards for Internet access and mobile telephony users holding prepaid cards with Internet access, of which: Subscription-based users Residential -million- Business -million Prepaid card-based users -million- Traffic -thousand terabytes- Average traffic per user -gigabytes per user per month GB/month a) on the mobile telephone, of which: GB/month subscription/(extra)options dedicated for Internet access against payment per consumption unit GB/month GB/month b) by means of modems/cards/usb GB/month Table 4.4 Number of terminals/sim cards allowing access, respectively number of active mobile Internet access connections, by means of 3G and superior to 3G technologies, by connection modality and type of service, as of G and/or 3G+ and/or EV-DO and/or 4G and/or other technologies superior to 3G Total terminals/sim cards allowing Internet access at mobile locations Subscription-based users Residential -million- Business -million- Prepaid card-based users -million Total active connections, of which: a) on the mobile telephone, of which: subscription/(extra)options dedicated for Internet access against payment per consumption unit b) by means of modems/cards/usb ANCOM Services of Internet access, leased lines and data transmission in the first semester of
18 Leased line and data transmission services Table 1. No. of active providers 17 of leased line/data transmission services: Active providers, of which: leased line services - wholesale market leased line services - retail market data transmission services - wholesale market data transmission services - retail market Table 2. Structure of the leased line market, by customer category (end-users/other providers) and, respectively, by the type of leased lines provided and market where these are supplied: Indicator No. of national leased lines - retail market No. of national leased lines - wholesale market thousand thousand thousand thousand thousand a) leased lines - terminating segments b) leased lines - trunk segments No. of international leased lines - retail market No. of international leased lines - wholesale market n.a. n.a. n.a. n.a. 0.2 n.a. n.a. n.a. n.a. 0.7 a) leased lines - terminating segments 17 n.a. n.a. n.a. n.a. 0.4 b) leased lines - trunk segments 17 n.a. n.a. n.a. n.a the providers that reported statistical data to ANCOM 18 In the calculation of the number of leased lines - terminating segments and, respectively, -trunk segments, ANCOM considered also the terminating segments and, respectively, the trunk segments corresponding to the number of leased lines - total circuits. Thus, for each leased line - total circuit sold at the wholesale level, one circuit - trunk segment and two circuits - terminating segments were considered. ANCOM Services of Internet access, leased lines and data transmission in the first semester of
19 Table 3. Structure of the leased line market, by capacity and, respectively, by type of leased lines provided analogue digital lines digital lines digital lines lines < 2Mbps = 2Mbps >2Mbps total thousand thousand thousand thousand thousand No. of leased lines retail market No. of leased lines wholesale market 17 - terminating segments No. of leased lines wholesale market 17 - trunk segments Table 4. Dynamics of the no. of connections to data transmission services, by type and market where these are provided: Indicator thousand thousand thousand thousand thousand No. of data transmission connections retail market a) X n/a 0 n/a 0 n/a b) Frame Relay c) ATM d) TCP/IP of which: d1) IP VPN e) other technologies/communication protocols (telex, mail, VSAT etc.) No. of data transmission connections wholesale market ANCOM Services of Internet access, leased lines and data transmission in the first semester of
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