digiworld yearbook 2011
DESCRIPTION
IDATE\'s DigiWorld Yearbook has become an essential tool for digital industry professionals – providing a compact and accessible review of the main events of the past year, the latest data on the markets and market players, and the major trends playing out on the world stage. As always, the 2011 DigiWorld Yearbook delivers all this along with the reputed insight of IDATE experts.More on www.digiworld.orgTRANSCRIPT
2
Agenda
- Steve Durbin, Chairman, DigiWorld Club UK
� DigiWorld Yearbook 2011Core telecom, Internet and media market issues- Jean-Michel Chapon, DigiWorld Programme London
- Yves Gassot, CEO, IDATE
� Other DigiWorld Initiatives 2011 - DigiWorld Summit Programme (16-17 November 2011)
- Collaborative Research programmes in UK
3
The DigiWorld Institute by IDATE …
DigiWorld Programme by IDATE
� A team of dedicated consultants specialised in the telecom, Internet and media industries
� A Digital world observatory : analysing market and business strategies, trend-tracking and forecasts
� A European forum that helps deepen interactions between enterprises, public decision-makers and academia
… the European Digital Economy Think Tank
4
DigiWorld ® Programme, an ambitious project
DigiWorldClubs
DigiWorld Events
DigiWorld Collaborative Research 2011
DigiWorldPublishing
Paris Club(monthly)
London Club(monthly)
Brussels Club(launching in 2011)
3 conferencesin Paris
TransatlanticDialogue
(Columbia University)
DigiWorld Summit 2011
Catalogue ofMarket reports
DigiWorld Economic Journal
(Communications & Strategies)
DigiWorldYearbook
OTT &Managed video
services
The future of advertising & datamining
Smart LivingSmart Cities
(launching in 2011/2012)
5
DigiWorld ® Yearbook, an original initiative
� Available in English and French, the 2011 edition will be launched in Paris and London.
6
DigiWorld ® Yearbook, an original initiative
Published with the support of DigiWorld Programme membe rs
7
DigiWorld trends by region
A market worth €2,754 billion in 2010, reporting 3% gro wth
� Market recovery in the US, but growth still on hold in Europe
� Emerging markets still the key driving forces… but not all faring the same
8
DigiWorld trends by sector
� Halting performances in hardware markets
� Very slight growth in service markets, withthe exception of TV
Recovery still tentative in most industry segments
9
UK 2011: Not leading the recovery
Growth rate of ICT revenue per capita – EU 5
-3.35%
0.27%0.84%
-8%
-6%
-4%
-2%
0%
2%
4%
08-09 09-10 10-11
France
Germany
Italy
Spain
United Kingdom
The UK is experiencing a slower DigiWorld recovery than its leading European counter part
� ICT trend mirrors GDP trends but with lower amplitudes
10
IT in the UK : the lion share
Breakdown of DigiWorld revenue per capita in 2011
IT revenue share per capita is bigger in the UK than to the European average (at €2060 per capita)
0
500
1000
1500
2000
2500
France Germany Italy Spain UnitedKingdom
Consumer electronics
TV services
Computer hardware
Software & services
Telecom equipment
Telecom services
� IT services + IT hardware : UK = 45% EU = 38%
� Business share is pulling UK figures up
� Private consumption is lagging
11
TV services & equipment for IT & Telecom
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
France Germany Italy Spain United Kingdom
TV services
SW & services
Telecom services
Consumer electronics
Computer hardw are
Telecom equipment
2011 DigiWorld growth rate per segment – EU 5� Despite all the “buz” on new devices, most negatively impacting segment is “Consumer electronics”
UK areas for DigiWorld Growth
12
Beyond the DigiWorld’s core
IPTV
VoIP
M2MIoT
0.5 Bn€
Socialnetworking
0.5 Bn€
CloudSaas, IaaS,
PaaS5.7 Bn€
Search6 Bn€
Online gaming2 Bn€
Onlinevideo
0.7 Bn€Online advertising
0.8 Bn€
Mobileapps1 Bn€
eBook
eHealth
SmartGrid &Cities
… New Internet markets
eCommerce210 Bn€
Telecoms310 Bn€
Media125 Bn€
Software & IT265 Bn€
Note: Figures are for the EU-27 2010Source: IDATE
13
Facts and commentary : 2010 - 2011
1. Will devices be king?
2. LTE: promising first steps…
3. FTTx: hesitation and impatience
4. Net Neutrality: Act II
14
1. Will the device be king?
� Google’s Android bet likely to pay off
� Apple’s iPad bet paying off
� The Nokia-Microsoft alliance
� TV gets connected……
Will the Device be reallyKing?
In the great battle of the online ecosystems ?
15
2. LTE: Good News!
First large-scale rolloutsprogressing very differentlyfrom earlier 3G/UMTS ones …
Sizeable gap in European and American cellco’s revenue growth …
Will new pricing schemes and the huge popularity of smartphones put European carriers back on track?
16
3. FTTX : hesitation and impatience
� Underpinning telcos’ (and financial markets’) hesitations is uncertainty over ROI and, ultimately, the position of telcos vs. OTT…
Stepped up rollouts in 2011-2012? How will this affect the sector’s structure? What prices and what new services can we expect?
► FTTx: Europe lagging behind…
► The appeal of fibre needs to be bolstered by new tiered pricing schemes and attractive content …
► No single European market has emerged as a model, each one offering up a different view of the future
17
4. Net Neutrality : Act II
�Act II … as a certain degree of clarity has set inNN= non-discrimination+ justified traffic management + and segmented access (incl. for managed services) but must not affect accessibility of the open Web
�Act II … as the debate shifts, notably to the topic of how and whether the top aggregators should help finance infrastructure given the growing asymmetry in traffic at network delivery points (cf. Netflix – Level3 – Comcast affair)
31,00%
24,00% 25,00%23%
2007 2008 2009 2010
Upstream
Of which 44% for P2P and only 12% for the rest
Source: Cisco
How to generate new revenue when traffic is skyrocketing?What’s involved in making the transition to smart pipe? Are we going to see more mergers and alliances?
Upstream as a % of traffic in N-A
18
5. Also noteworthy …
Save the date! 16&17 Novembre, Montpellier
Will the Device be King?
� Smart Devices: what’s Next?
� Devices issues in digital markets: Mobile Internet, TV & Video OTT, Press
� Beyond Devices, the Cloud’ battle!
►Talking again about an Internet bubble: $25 billion for Groupon…
►Google’s troubles in China
►The role of social networking in popular uprisings in Tunisia and Egypt
►AT&T’s planned takeover of T-Mobile
►Vivendi buys Vodafone’s stake in SFR
►…