Every European Digital. Every European Digital

Transcription

1 Every European Digital Every European Digital

2 1. Polish Market Competitive Landscape 2. Key issues for EU funding programs 3. Eastern Poland projects 4. Conclusion Every European Digital

3 MOBILE : TPSA (FT)/ Orange, PTC (DT)/ Era now T-Mobile, Polkomtel (Solorz-Zak)/ Plus, Aero2/Mobyland:LTE / Centernet:MVNO (Landisbanki)/ Play P4 CATV: UPC Poland/ASTER, VECTRA, Multimedia, plus more than600 others DTH : Cyfrowy Polsat, Cyfra +, N FIXED/W SALE : TPSA, NETIA/DIALOG, HAWES, EXATEL, GTS-CE, TK Telekom (Rail) LLU: AB Space Communications, CETI SC, EXATEL, GTS, Firma Handlowo-Uslugowa KOMPEX, LUPRO, NETIA, PPHU POLTECHNICS, PT NOVUM, PTK Centertel, WDM Computers. Bridget Cosgrave 3

4 5.7 % of the budget i.e. 3.7B of the ERDF Innovative Economy Priority VII & VIII: 1.9B ; 170M for bband Regional OPs 1.3B, incl. 620M for Bband OP Eastern Poland 255M for Bband OP Infrastructure & Environment 150M for Bband in e-learning Total Broadband Investment 1B, the largest in EU LOADS OF MONEY Also ongoing investment of private operators Bridget Cosgrave 4

5 Match the asset to the investor class: Long term assets need long term money Match the infrastructure to the market: population density / competitive landscape Benchmark real speeds EU = 4 MB POL < 2MB Use existing infrastructure: don t ignore satellite Match the subsidy to the subscriber need: DIGGING vs CUSTOMER PREMISE EQUIPMENT Every European Digital

6 Match the asset to the investor class: Long term assets need long term money Communication Infrastructure Fund Every European Digital

7 Trends TELECOM 3-LAYER MODEL Service Service providers providers Operator network Passive infrastructure Growing bandwidth demand will force TELCO and CATV to increase investments Broadly speaking, POLISH telecom and cable companies are short term cashflow focused - Altnets are owned by Private Equity, high leverage, need to optimise cashflows to service debt - TPSA FT is short term cash flow focused and have limited appetite to invest in infrastructure Due to the sheer size of the investments needed will only be one party successful in making investments in FttH Access to fixed line infrastructure at low cost key to maintain competitive edge for fixed line business Via service convergence, strategic value of owned infrastructure will diminish/change IP as base technology enables data and voice traffic can be serviced over a single infrastructure. On the medium term, infrastructures that can support TV have still a competitive edge Regulatory pressure reduces advantages of owned infrastructure UKE enforces network access at all infrastructures layers 7

8 Passive infrastructure assets characterised by a long asset lifetime / investment cycle and low volatility and technology risks. Utility-like characteristics provide for limited risk, highly predictable cash flows and a low cyclical long-term investment proposition to the owners and financiers of the infrastructure Infrastructure assets need constant investment and ultimately a path to optical fibre for the majority (but not all ) infrastructure: actively de-risks the infrastructure ensure a primary relevant infrastructure provider, now and in the future Assets can be leased whereby the utilization risk of the infrastructure is for the lessee (analogy to real estate type of leases). 8 8 Bridget Cosgrave 1/12/2011 8

9 Long term investments (10-20 year horizon) Stable returns: no or low utilization risk via lease agreements, no sharing of upside, fixed tariffs Low cyclicality: absolute return to shareholders due to providing access to basic communication services much needed in modern societies (utility character) Investment in asset class with growing demand for foreseeable future Mortgage value due to: Ongoing investments keeping asset always up-to-date (e.g., FttH investments) Multi-tenant asset making fund less dependable on lessee Infrastructure necessary to provide access to crucial communication services Immediate cash returns: brownfield approach leads to immediate strong dividend yield Inflation hedge: lease contracts are CPI-indexed Bridget Cosgrave 1/12/2011 9

10 Match the infrastructure to the market: Population Density / Competitive Landscape Use existing infrastructure: don t ignore satellite Every European Digital

11 EED Every European Digital 1/12/2011 Bridget Cosgrave Slide 11

12 EED 1/12/2011 Bridget Cosgrave Slide 12

13 1 2 EED 1/12/2011 Bridget Cosgrave Slide 13

14 1/12/2011 Every European Digital Bridget Cosgrave EED Slide 14

15 1 2 Input EED PwC 1/12/2011 Bridget Cosgrave Slide 15 Households without coverage from mobile and fixed infrastructure real rural households

16 EED Every European Digital 1/12/2011 Bridget Cosgrave Slide 16

17 Proste i skalowalne, finansowo optymalne rozwiązanie dla obszarów o gęstości zaludnienia od 1 do 20 gospodarstw domowych na km2 przedziały gęstości zaludnienia Bridget Cosgrave 1/12/

18 Hybrid fibre-satellite solution fits EU guidelines: Existing infrastructure" should be preferred Inter operator competition & select "best economic offer" Satellite infrastructure is already in place, enabled by private investments of ESOA association members. Satellite usually presents 'best economic offer' for low density population or remote areas Bridget Cosgrave 1/12/

19 Bridget Cosgrave 1/12/

20 Match the subsidy to the subscriber need: DIGGING vs CUSTOMER PREMISE EQUIPMENT Every European Digital

21 Compared to fibre rollout very cost effective BEST PRACTICE EXAMPLES: Nordnet France 50K Subs; Xplornet Canada 75K Subs; EED Every European Digital 1/12/2011 Bridget Cosgrave Slide 21

22 3 operatorów satelitarnych: MASSIVE INVESTMENTS Bridget Cosgrave 1/12/

23 Infrastruktura satelitarna jest dostępna, dzięki prywatnym inwestycjom członków organizacji ESOA Satelity stanowiąofertęnajbardziej korzystnąekonomicznie dla terenów o małej gęstości zaludnienia i obszarów chronionych NATURA 2000 Hybrydowe rozwiązania światłowód-satelita w sieciach dystrybucyjnych powinno zostaćuznane za równoprawne rozwiązanie w projekcie SSPW W celu wyrównania szans, projekt SSPW powinien jasno określać możliwości publicznego wsparcia dla zastosowania sprzętu satelitarnego w węzłach dystrybucji, zgodnie z polityką UE Bridget Cosgrave 1/12/

24 Match the asset to the investor class: Long term assets need long term money Match the infrastructure to the market: population density / competitive landscape Benchmark real speeds EU = 4 MB POL < 2MB Use existing infrastructure: don t ignore satellite Match the subsidy to the subscriber need: DIGGING vs CUSTOMER PREMISE EQUIPMENT Every European Digital

25 Every European Digital

26 Bridget Cosgrave 26