FTTH Europe Panorama...December 2012 December 2013 December 2014 September 2015 September 2016 September 2017 September 2018 September 2019 September 2020 s FTTH/B Subscribers - EU39

FTTH/B Market Panorama in Europe

FTTH Council EUROPE

FTTH Council Europe Webinar – May 12th, 2021

Roland Montagne

Principal Analyst, IDATE

+33 (0)4 67 14 44 26

[email protected]

Eric Joyce

Chair,Market Intelligence Committee

FTTH Council Europe

[email protected]

© IDATE DigiWorld 2020 – p. 2Enlighten your digital future!

Agenda

1. Study Background

2. General overview and main trends

3. Who is leading the race towards full-fibre ?

4. European Ranking - September 2020

5. Key conclusions

6. Appendix

® IDATE DigiWorld 2021


Study

Background

1



Methodology

ACTIONS

Results

▪ Mission on behalf of the FTTH Council Europe

▪ Provide a complete summary of the status of FTTH/B in Europe measured during September 2020

Bottom-up methodology

Scope

• Analysis of 39 countries

• Data per player for FTTH/B and

other fibre-based architectures

• Key parameters study: technical,

financial, business model,

figures

• Desk research

• Direct contacts with leading

players and IDATE partners

within countries

• Information exchange with FTTH

Council Europe members

• Both quantitative and qualitative

data

• Market status in the country

• Strategic approach of involved

players



Important Definitions

Homes Passed

Sockets

Subscribers


Potential number of Premises which a Service Provider has capability to

connect to an FTTH/FTTB network in a service area. This definition excludes

premises that cannot be connected without further installation of substantial

fibre plant to reach the subscriber’s location.

Premises which are connected to a network and are already subscribed

Connection point of a single fibre service provider inside/outside a premises.

Possibility to have multiple sockets if the location is serviced by multiple

FTTH network operators in either coordinated or competitive overbuild

situations.


2


FTTH/B Market

Panorama

General overview &

Main trends


FTTH/B Market PanoramaKey Figures

FTTH/B European market evolution (EU39)In terms of Homes Passed and Subscribers (2012-2020)


82million FTTH/B

Subscribers 183million FTTH/B

Homes Passed

FTTH/B in EU39* countries

September 2020 Update

Source: IDATE for FTTH Council EUROPE

Coverage rate

EU27+UK: 43.8% ( Up 4.4% )

EU39 : 52.5% ( Up 2.6% )

Take-up rate

EU27+UK: 46.9% ( Up 3.6% )

EU39 : 44.9% ( Up 1.9% )

EU27 countries

Other European

countries under study

Detailed FTTH/B Market

Panorama scope

* EU39 detailed composition:

• EU27 + United Kingdom

• 4 CIS countries: Belarus, Kazakhstan, Russia, Ukraine

• Iceland, Israel, North Macedonia, Norway, Serbia, Switzerland, Turkey

16 20

30 36 44

52 61

70 82

57 70

95 111

123 133

146

163

183

-

20

40

60

80

100

120

140

160

180

200

December2012

December2013

December2014

September2015

September2016

September2017

September2018

September2019

September2020

Mill

ion

FTTH/B Subscribers FTTH/B Homes Passed


Evolution of FTTH/B Subscribers (million)EU27+UK vs EU39 comparison

▪ Teleworking and need for robust connectivity during the pandemic led to increased subscription levels in the whole region (YoY)

▪ EU27+UK countries account for more than 56% of FTTH/B Subscriptions, an increasing trend over the years (53.7% at Sept 2019)

▪ With 98.3 million Homes Passed, more than half (54%) of FTTH deployments are performed inside EU27+UK countries (mainly

intensified due to COVID19 pandemic)


Evolution of FTTH/B Homes Passed (million)EU27+UK vs EU39 comparison



FTTH/B Market PanoramaMarket trends (EU27+UK vs. EU39)

16.120.2

30.0

35.7

43.9

52.0

60.7

70.3

81.9

6.1 8.012.3

15.119.7

24.9

31.1

37.7

46.1

-

10

20

30

40

50

60

70

80

90

December2012

December2013

December2014

September2015

September2016

September2017

September2018

September2019

September2020

Mill

ions

FTTH/B Subscribers - EU39 FTTH/B Subscribers - EU27+UK

57.2

70.3

95.1

110.7

123.3133.4

145.7

163.3

182.5

24.028.8

39.5 44.053.1

60.169.4

82.3

98.3

December2012

December2013

December2014

September2015

September2016

September2017

September2018

September2019

September2020

FTTH/B Homes Passed - EU39 FTTH/B Homes Passed - EU27+UK


Around 400 FTTH/B initiatives identified in EU39 by September 2020

▪ Reinforced commitment of Altnets towards FTTH expansion (e.g. in UK, Germany)

▪ Based on share - 39% of Connected Homes are passed by incumbents, versus 41%

in 2019 – showing Altnets increasing their market share this year.

▪ Municipalities/utilities and alternative ISPs cover many remote and isolated areas.

Further enhanced with public funds and incentives.

Breakdown of FTTH/B Homes Passed by type of player (%)Data comparison between Dec. 2011 and Sept. 2020

Breakdown in terms of FTTH/B Homes Passed

Top 5 European countries



FTTH/B Market PanoramaAltnets drive the FTTH race; incumbents progressively redefining their full-fibre strategies

BACK IN 2011 SEPTEMBER 2020

21%

71%

8%

Incumbents Alternative ISPs Municipalities/Utilities

1

2

3

4

5

Russia 49 millions

France

Spain

Ukraine

Italy

21.4 millions

15.9 millions

11.5 millions

11 millions


39%

57%

4%

Incumbents Alternative ISPs Municipalities/Utilities


FTTH/B Market

Panorama

Who is leading the race

towards full-fibre ?

3



EU27+UK ranking in terms of FTTH/B Homes passed over time (in million homes)Data comparison between Sept. 2015 and Sept. 2020

5 fastest growing markets in EU27+UK

(in both volume and %)Data from Sept. 2019 to Sept. 2020 (in terms of FTTH/B

Homes Passed)


FTTH/B Homes Passed EU27+UK Ranking


1

2

3

4

5

+ 4.6M

+ 2.8M

+ 2.7M

+ 1.7M

+ 963k

+ 155 %

+ 66 %

+ 64 %

+ 49 %

+ 35 %

-

5

10

15

20

25

Mill

ions September 2015 September 2016 September 2017 September 2018 September 2019 September 2020

21.4M

(+4.6M yoy)

11M

(+2.8M yoy)

6.8M

(+2.7M yoy)

4.2M

(+1.7M yoy)


European ranking in terms of FTTH/B Homes passed, countries with > 2 million homes passedData comparison between Sept. 2015 and Sept. 2020 (in million homes)

5 fastest growing markets (in both volume and %)Data from Sept. 2019 to Sept. 2020 (in terms of FTTH/B

Homes Passed)


FTTH/B Homes Passed EU39 Ranking


1

2

3

4

5

+ 4.6M

+ 2.8M

+ 2.7M

+ 1.7M

+ 1.2M

+ 155 %

+ 110 %

+ 66 %

+ 64 %

+ 49 %

-

10

20

30

40

50

60

Mill

ions

September 2015 September 2016 September 2017 September 2018 September 2019 September 2020

21.4M

(+4.6M yoy)

11M

(+2.8M yoy)

6.8M

(+2.7M yoy) 4.2M

(+1.7M yoy)


5.6%

9.9%

15.1%

16.4%

21.2%

23.0%

33.3%

34.7%

39.3%

39.6%

41.0%

41.3%

43.8%

44.8%

49.5%

52.5%

55.8%

62.9%

68.8%

68.9%

70.0%

72.7%

72.9%

75.0%

76.5%

81.3%

83.0%

87.8%

89.9%

91.9%

Belgium

Greece

United Kingdom

Germany

Austria

Cyprus

Croatia

Czech Republic

Finland

Netherlands

Italy

Poland

EU27+UK

Hungary

Slovakia

EU39

Ireland

Estonia

Denmark

Slovenia

Luxembourg

France

Romania

Malta

Bulgaria

Sweden

Portugal

Spain

Lithuania

Latvia


European leaderboards – EU27+UKHalfway there: EU27+UK – 14/28 Countries now exceeding 50% of total homes passed with Full-fibre!

FTTH/B coverage* in EU27+UK as of September 2020(* Homes passed / Households)


© IDATE DigiWorld 2020 – p. 14Enlighten your digital future! ® IDATE DigiWorld 2021

European leaderboards – EU39Halfway there: EU39 – 20 countries now have more than 50% of total homes with Full-fibre!

FTTH/B coverage* as of September 2020(* Homes passed / Households)


5.6%9.9%

15.1%16.4%

17.7%21.2%

23.0%31.6%

33.3%34.7%

39.3%39.6%

41.0%41.3%

43.4%43.8%43.8%44.1%

44.8%49.5%50.1%

52.5%55.8%

62.9%63.9%

68.8%68.9%

70.0%72.7%72.9%

75.0%76.5%

81.3%81.5%

83.0%86.3%

87.8%89.9%90.0%

91.9%92.0%

BelgiumGreece

United KingdomGermany

SerbiaAustriaCyprus

North MacedoniaCroatia

Czech RepublicFinland

NetherlandsItaly

PolandIsrael

EU27+UKTurkey

SwitzerlandHungarySlovakia

KazakhstanEU39

IrelandEstoniaUkraine

DenmarkSlovenia

LuxembourgFrance

RomaniaMalta

BulgariaSwedenNorway

PortugalRussiaSpain

LithuaniaIcelandLatvia

Belarus




FTTH/B coverage > 90%

FTTH/B coverage 75 – 90 %

FTTH/B coverage 50 – 75 %

FTTH/B coverage < 50 %

FTTH/B coverage* map - September 2020(* Homes passed / Households)

73%

88%

41%

16%

15%

81%

41%

83%

FTTH/B CoverageSummary map 90%


Coverage rate

EU27+UK: 43.8% ( Up 4.4% )

EU39 : 52.5% ( Up 2.6% )


EU27+UK ranking in terms of FTTH/B Sockets deployed over time (in million homes)Data comparison between Sept. 2015 and Sept. 2020

5 fastest growing markets (in volume and in %)Data from Sept. 2019 to Sept. 2020 (in terms of FTTH/B

Sockets Deployed)


FTTH/B Sockets Deployed* EU27+UK Ranking


*FTTH/B Sockets Deployed: The connection point of a single

fibre service provider inside/outside a premises.

Multiple sockets are counted if the location is serviced by

multiple FTTH network operators.

-

10

20

30

40

50

60

70

80

90

Mill

ions


1

2

3

4

5

+ 24.6M

+ 10.2M

+ 3.9M

+ 2.7M

+ 2 M

+ 155 %

+ 66 %

+ 49 %

+ 46 %

+ 46 %


European ranking in terms of FTTH/B Sockets deployed, countries with > 2 million sockets deployedData comparison between Sept. 2015 and Sept. 2020 (in million)


Sockets Deployed)


FTTH/B Sockets Deployed* EU39 Ranking


*FTTH/B Sockets Deployed: The connection point of a single

fibre service provider inside/outside a premises.

Multiple sockets are counted if the location is serviced by

multiple FTTH network operators.

1

2

3

4

5

+ 24.6M

+ 10.2M

+ 5.1M

+ 3.9M

+ 2.7M

+ 155 %

+ 110 %

+ 66 %

+ 49 %

+ 49 %

-

10

20

30

40

50

60

70

80

90

Mill

ions



-

2

4

6

8

10

12

Mill

ions September 2015 September 2016 September 2017 September 2018 September 2019 September 2020

EU27+UK ranking in terms of FTTH/B Subscriptions over time (in million homes)Data comparison between Sept. 2015 and Sept. 2020


FTTH/B SubscribersEU27+UK Ranking



Subscribers)

1

2

3

4

5

+ 2.8M

+ 1.4M

+ 694k

+ 482k

+ 460k

+ 55 %

+ 52 %

+ 42 %

+ 41 %

+ 40 %

10.3M

(+2.8M yoy)

11.3M

(+1.4M yoy)

2.04M

(+674k yoy)


European ranking in terms of FTTH/B Subscriptions over time, countries with > 1 million subscriptionsData comparison between Sept. 2015 and Sept. 2020 (in million)


FTTH/B SubscribersEU39 Ranking


1

2

3

4

5

+ 2.8M

+ 1.7M

+ 1.4M

+ 718k

+ 694k

+ 64 %

+ 55 %

+ 52 %

+ 44 %

+ 42 %


Subscribers)

-

5

10

15

20

25

Mill

ions


10.3M

(+2.8M yoy)

11.3M

(+1.4M yoy)

2.04M

(+674k yoy)


FTTH/B take-up > 50%

FTTH/B take-up 30 – 40 %

FTTH/B take-up < 30 %


FTTH/B take-up 40 – 50 %

79%

48%

Spain71%

14%

30%

25%

Sweden


FTTH/B Take-upSummary map

60%

FTTH/B take-up* map - September 2020(* Homes passed / Households)

Take-up rate

EU27+UK: 46.9% ( Up 3.6% )

EU39 : 44.9% ( Up 1.9% )


Focus on microstates progress Summary

12,000 Homes Passed by Fibre

69 %*7,600 Fibre Subscribers

66 %*

Liechtenstein - 17,300 Households (2019)

* of total homes


60 %*500 Fibre Subscribers

3 %*

Monaco - 16,200 Households (2019)

* of total homes


56 %*5,500 Fibre Subscribers

48 %*

San Marino - 11,500 Households (2019)

* of total homes


100%*37,165 Fibre Subscribers

83 %*

Andorra - 45,000 Households (2019)

* of total homes

Source: IDATE estimations for FTTH Council EUROPE


Fibre improves customer experience

▪ Full-fibre connectivity is designed for residential usage to support an increasing demand for bandwidth-intensive services (such as TV

and video)

▪ Fibre is also a key enabler for businesses, facilitating Working From Home (WFH) situations, joining reliable connectivity with higher

upload bandwidth and reduced latency.

▪ This supports video-conferencing, cloud-based services and other real-time or bandwidth hungry applications now in demand.

0

50

100

150

200

250

0%

10%

20%

30%

40%

50%

60%

70%

80%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

FTTH/B Penetration alongside Ookla Global Index - Fixed Upload Bandwidth

FTTH/B Penetration % Upload Speed Mbps

0

5

10

15

20

25

30

35

0%

10%

20%

30%

40%

50%

60%

70%

80%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

FTTH/B Penetration alongside Ookla Global Index - Latency

FTTH/B Penetration % Latency (ms)Sources: IDATE for FTTH Council EUROPEOokla Speedtest Global Index March 2021


FTTH/B Market

Panorama

European Ranking

September 2020

4



1.3%2.1%

3.7%4.9%5.2%

5.9%7.0%

7.7%

8.8%12.0%

12.2%12.9%

14.5%15.1%

17.6%

18.3%18.8%19.0%

20.5%23.2%23.3%

26.7%

29.2%31.7%32.2%

32.8%33.7%

35.0%39.1%

40.7%46.1%

47.3%50.2%

51.3%51.4%

61.8%

62.6%70.4%70.7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Belgium

Austria

United Kingdom

Germany

Cyprus

Italy

Croatia

Israel

Serbia

Ireland

Ukraine

North Macedonia

Poland

Turkey

Kazakhstan

Malta

Czech Republic

Netherlands

EU27+UK

Hungary

Switzerland

Luxembourg

Slovakia

Estonia

Slovenia

Finland

Denmark

France

Romania

Russia

Latvia

Bulgaria

Portugal

Lithuania

Norway

Sweden

Spain

Belarus

Iceland

FTTH Subscribers

FTTB Subscribers



Penetration rates of European countries - September 2020(FTTH/B Subscriptions / Households)

European Ranking FTTH/B Markets - September 2020

Including:

▪ Countries with more than 1% FTTH/B household penetration

▪ Economies with at least 125.000 Households

© IDATE DigiWorld 2020 – p. 25Enlighten your digital future! Source: IDATE for FTTH Council EUROPE


European Ranking – EU27+UKThe Road to Full Fibre – Who has the most work left to do?

34,700,000

23,850,000

15,800,000

8,682,000

8,060,000

4,810,000

4,690,000

3,990,000

3,184,700

2,892,000

2,340,000

2,280,000

2,200,000

1,688,000

981,000

970,000

900,000

839,000

827,000

714,000

710,000

344,000

280,000

221,000

120,000

90,000

65,000

45,000

0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

Germany

United Kingdom

Italy

Poland

France

Netherlands

Belgium

Greece

Austria

Czech Republic

Romania

Hungary

Spain

Finland

Croatia

Slovakia

Sweden

Denmark

Ireland

Portugal

Bulgaria

Cyprus

Slovenia

Estonia

Lithuania

Luxembourg

Latvia

Malta

Homes Left to Pass Homes Already Passed


FTTH/B Market

Panorama

Key conclusions

5



1

2

4

5

POSITIVE IMPACTS NEGATIVE IMPACTS

Data demand and bandwidth has intensified (due to COVID19 and

WFH situations), more operators focused on full-fibre networks to

sustain ongoing traffic increase

National authorities are fully involved in broadband

acceleration via FTTH, with new national programmes being

defined to reach Digital Agenda goals for 2025/2030.

Ongoing trend towards mutualized networks and network

sharing agreements in Europe will accelerate FTTH deployments

Continued investment from private financing groups for new and

existing network operators.

Variables affecting FTTH adoption Both positive and negative criteria should be considered

3

Progress in micro-trenching and cable design is less

intrusive/disruptive in cities and neighborhoods while new low

profile cable designs offer better aesthetics (indoors and

outdoors)

1

2

4

5

Gigabit Capable FWA (60Ghz) is becoming more common in

isolated areas, thus will delay FTTH deployments in some regions.

5G technology used in high spectrum bands (26 GHz) can directly

challenge FTTH in the fixed residential market

FTTH investments delayed in several areas due to direct

alternative technologies such as Cable (Docsis 3.1/4.0) and

G.Fast

Fibre Rollout Plans being delayed across Europe – some by up to 2

years. Removal of red tape and better central coordination can

tackle these delays.

Availability of skilled labor to build out new fibre networks is

beginning to be felt in late 2020. The growth expected in 2021 and

2022 will make this more pronounced.

3Misleading fibre advertising is still impacting FTTH subscriber

adoption. New demand for WFH applications in the home will help

differentiate FTTH further from FTTC as 2021 progresses.


© IDATE DigiWorld 2020 – p. 28Enlighten your digital future! ® IDATE DigiWorld 2021

Top 3 - Main movers in terms of Homes Passed in absolute numbers

Data comparison between Sept. 2019 and Sept. 2020

1 2 3

France

+ 4.6m

Italy

+ 2.8m

Germany

+ 2.7m

▪ FTTH/B networks are now covering more than half of total households in the EU39 region (53%): a key milestone on

the path towards full fibre connectivity across all of Europe.

▪ EU39 reaching 82 million FTTH subscriptions, with EU27+UK accounting for 56%.

▪ 183 million homes passed by full-fibre infrastructure in the total region, 98 million in EU27+UK.

FTTH/B reaching a

new level

▪ In many historical copper-based countries (UK, Germany, Italy), the whole telecom ecosystem has intensified its

efforts towards full-fibre connectivity, and the pandemic tends to accelerate both deployments and adoption. There is

still some distance to go with these 3 countries have ~60% of the remaining Homes to be passed in the EU27+UK!

▪ National authorities are even more involved in the digital transformation, in the wake of COVID-19 crisis, implying

revised national programmes, subsidies and a relevant policy framework to promote fibre expansion

▪ Underserved regions are also affected by the COVID pandemic and their need for reliable networks is now a clear

target for the ecosystem

Key lessons to be

learned

Key conclusionsRegional recap

Thank you for your Participation!

@FTTHCouncilEU

FTTH COUNCIL EUROPE

@FTTHCouncilEurope

@iWantFibre

FTTH Council Europe

www.ftthcouncil.eu

We connect technology, policy and finance

Roland Montagne

Principal Analyst, IDATE

+33 (0)4 67 14 44 26

[email protected]

Eric Joyce

Chair,Market Intelligence Committee

FTTH Council Europe

[email protected]

http://www.ftthcouncil.eu/

Documents

FTTH Europe Panorama...December 2012 December 2013 December 2014 September 2015 September 2016 September 2017 September 2018 September 2019 September 2020 s FTTH/B Subscribers - EU39