Summary
This report covers developments in Europe's markets for convergent services and broadcasting. Europe's media market is on the cusp of massive changes driven by new technological developments in fixed-line broadband, while from 2010 mobile technologies led by LTE will enable a range of media services to be delivered on the mobile platform. Fast Internet access has brought content to the forefront, and content providers are in a position to move into the telecom arena. Quad play models based on fibre, DSL, cable and HSPA/LTE networks will deliver a growing number of services.
Operators are fast upgrading their communications networks to IP packet-switched technology, providing convergence and enabling voice, video and data applications to be delivered over the same physical network. Consumers are in the meantime exploiting the possibilities inherent in Digital and Personal Video Recorders, VoD and user-generated content to transform the way content is delivered and managed.
The availability of convergence offerings in Eastern Europe is expanding but has largely depended on the maturity of broadband markets, with many still in the nascent stages of development in terms of subscriber numbers. Yet the continuing deployment of ADSL2+ and FTTx infrastructure is laying the foundation for future convergence offerings. Technological developments coupled with competition are shaping digital media. TV broadcasters, the traditional distributors of media content, are competing with and at the same time turning to Internet delivery platforms. While new players have entered traditional media markets, new markets based on digital media products have emerged and are growing on the back of the region's high broadband penetration.
The transition to Digital Terrestrial TV continues to take place, with countries such as Sweden having already switched off analogue signals. Regulators are assigning digital dividend spectrum released from this process to improve mobile broadband across the region, so accelerating the possibilities for convergent services in rural areas.
The countries covered in this report include: Albania, Austria, Belarus, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Macedonia (FYROM), Malta, Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine and United Kingdom.
Data in this report is the latest available at the time of preparation and may not be for the current year.
The following notes provide some background to our scenario forecasting methodology:
*This report includes what we term scenario forecasts. By describing long-range scenarios we identify a band within which we expect market growth to occur. The associated text describes what we see as the most likely growth trend within this band.
*The projections shown in the tables in this report are based on our own historical information, as well as on telecommunication sector statistics from official and non-official, national and international sources. We assume a possible deviation of 15-20% around this data.
*All statistics for GDP, revenue, etc are shown in US$, in order to maintain consistency within and between markets. At the same time we acknowledge that this can introduce some irregularities.
TABLE OF CONTENTS
1. ALBANIA 1
1.1 Broadcasting market overview 1
2. AUSTRIA 2
2.1 Convergence 2
2.1.1 Key general trends
2.1.2 Triple play models
2.1.3 Regulatory issues
3. BELARUS 4
3.1 Broadcasting market overview 4
4. BELGIUM 5
4.1 Convergence 5
4.1.1 Key general trends
4.1.2 Triple play models
4.1.3 Regulatory issues
5. BOSNIA-HERZEGOVINA 7
5.1 Broadcasting market overview 7
6. BULGARIA 8
6.1 Convergence 8
6.1.1 Overview
6.1.2 Triple play
6.1.3 Overview of broadcasting market
7. CROATIA 10
7.1 Convergence 10
7.1.1 Triple play models
7.2 Broadcasting market overview 10
7.2.1 Regulatory issues
8. CYPRUS 12
8.1 Convergence 12
8.1.1 Overview of triple play models
8.2 Broadcasting market overview 12
9. CZECH REPUBLIC 13
9.1 Convergence 13
9.1.1 Key general trends
9.1.2 Triple play models
9.2 Broadcasting market overview 13
9.2.1 Czech Television (CT)
9.2.2 TV Nova
9.2.3 Prima TV
9.2.4 Regulatory developments
9.2.4.1 Broadcasting licences awarded
10. DENMARK 16
10.1 Convergence 16
10.1.1 Key general trends
10.1.2 Triple play models
10.1.3 Regulatory issues
10.1.3.1 Overview
10.1.3.2 VoIP
11. ESTONIA 18
11.1 Convergence 18
11.1.1 VoIP
11.1.1.1 Elion
11.1.1.2 Skype
11.1.2 Triple play
11.2 Broadcasting market overview 18
12. FINLAND 20
12.1 Convergence 20
12.1.1 Key general trends
12.1.2 Triple play models
13. FRANCE 21
13.1 Convergence 21
13.1.1 Key general trends
13.1.2 Triple play models
13.1.2.1 SFR/neuf Cegetel
13.1.2.2 Orange
13.1.2.3 Canal+
13.1.2.4 Other operators
13.1.3 Quadruple play models
13.1.4 Regulator issues
13.1.4.1 VoIP
14. GERMANY 24
14.1 Convergence 24
14.1.1 Key general trends
14.1.2 Triple play models
14.1.2.1 Operators
14.1.3 Regulatory issues
14.1.3.1 VoIP
14.1.3.2 Fragmented legal framework
14.2 Broadcasting market overview 26
14.2.1 Digital TV
15. GREECE 28
15.1 Convergence 28
15.1.1 Overview
15.1.2 Triple play
15.2 Broadcasting market overview 28
16. HUNGARY 30
16.1 Convergence 30
16.1.1 Overview
16.1.2 VoIP
16.1.3 Triple play models
16.2 Broadcasting market overview 30
17. ICELAND 32
17.1 Convergence 32
18. IRELAND 33
18.1 Convergence 33
18.1.1 Key general trends
18.1.2 Triple play models
18.1.2.1 Smart Telecom
18.1.2.2 Magnet Networks
18.1.2.3 UPC Ireland
18.1.3 Regulatory issues
18.1.3.1 VoIP
18.1.3.2 Multichannel Multipoint Distribution Systems (MMDS)
18.2 Broadcasting market overview 35
19. ITALY 36
19.1 Convergence 36
19.1.1 Key general trends
19.1.2 Triple play models
19.1.3 Quad play models
19.1.4 Regulatory issues
19.1.4.1 VoIP
20. LATVIA 39
20.1 Convergence 39
20.1.1 Overview
20.1.2 Triple play models
21. LITHUANIA 40
21.1 Convergence 40
21.2 Broadcasting market overview 40
22. LUXEMBOURG 41
22.1 Convergence 41
23. MACEDONIA (FYROM) 42
23.1 Convergence 42
23.2 Broadcasting market overview 42
24. MALTA 43
24.1 Convergence 43
24.1.1 Triple play models
24.2 Broadcasting market overview 43
25. MOLDOVA 44
25.1 Convergence 44
25.2 Broadcasting market overview 44
26. MONTENEGRO 45
26.1 Broadcasting market overview 45
27. NETHERLANDS 46
27.1 Convergence 46
27.1.1 Key general trends
27.1.2 Triple play models
27.1.3 Regulatory issues
27.1.3.1 VoIP
27.1.3.2 Cable tariffs
28. NORWAY 49
28.1 Convergence 49
28.1.1 Key general trends
28.1.2 Triple play models
28.1.3 Regulatory issues
28.1.3.1 VoIP
28.1.4 VoIP
29. POLAND 52
29.1 Convergence 52
29.1.1 Overview
29.1.2 Triple play
29.2 Broadcasting market overview 53
29.2.1.1 TP Emitel
29.2.1.2 TVP
29.2.1.3 Telewizja Polsat
29.2.1.4 TVN
30. PORTUGAL 55
30.1 Convergence 55
30.1.1 Overview
30.1.2 Key general trends
30.1.3 Triple play models
31. ROMANIA 57
31.1 Convergence 57
31.1.1 Triple play
31.2 Broadcasting market overview 57
31.2.1 Romanian Television Company (TVR)
31.2.2 Commercial broadcasters
32. RUSSIA 60
32.1 Convergence 60
32.1.1 Overview
32.1.2 Triple play
32.1.3 VoIP
32.1.4 Digital content
32.2 Broadcasting market overview 61
32.2.1 Free-to-Air (FTA) TV
32.2.1.1 Channel One (ORT)
32.2.1.2 Russia TV channel (RTR)
32.2.1.3 NTV
32.2.1.4 Ren TV
32.2.1.5 DTV/CTC
33. SERBIA 64
33.1 Convergence 64
33.1.1 Triple play models
33.2 Broadcasting market overview 64
33.2.1 Serbia
33.2.2 Kosovo
33.2.3 Regulatory issues
34. SLOVAKIA 66
34.1 Convergence 66
34.1.1 Triple play models
34.2 Broadcasting market overview 66
35. SLOVENIA 68
35.1 Convergence 68
35.1.1 Overview
35.1.2 Triple play models
35.2 Broadcasting market overview 69
35.2.1 Regulatory environment
36. SPAIN 70
36.1 Convergence 70
36.1.1 Key general trends
36.1.2 Triple play models
36.1.3 Regulatory issues
36.1.3.1 VoIP
37. SWEDEN 73
37.1 Convergence 73
37.1.1 Overview
37.1.2 Key general trends
37.1.3 Triple play models
37.1.4 Regulatory issues
37.1.4.1 Digital dividend
38. SWITZERLAND 76
38.1 Convergence 76
38.1.1 Key general trends
38.1.2 Triple play models
38.1.3 VoIP
38.1.4 Regulatory issues
39. UKRAINE 78
39.1 Convergence 78
39.1.1 Overview
39.1.2 Triple play
39.2 Broadcasting market overview 78
40. UNITED KINGDOM 80
40.1 Convergence 80
40.1.1 Key general trends
40.1.2 Triple play models
40.1.3 Regulatory issues
40.1.3.1 Ofcom
40.1.3.2 Digital Dividend Review (DDR)
40.1.3.3 Releasing dividend spectrum
40.1.3.4 DTTV pay services
40.1.3.5 Digital switchover licensing
41. GLOSSARY OF ABBREVIATIONS 85
LIST OF TABLES
Table 1-Population coverage by broadcaster in Belarus-August 2008 4
Table 2-TV station audience share in Bosnia-Herzegovina-November 2008 7
Table 3-Audience share by broadcaster-prime time in Croatia-2004-2007 10
Table 4-Audience share by broadcaster-all day in Croatia-2004-2007 11
Table 5-Audience share by broadcaster-prime time in the Czech Republic-2005-2007 14
Table 6-Audience share by broadcaster-all day in the Czech Republic-2005-2007 14
Table 7-Triple play subscribers in Denmark-2005-2007 16
Table 8-Cable TV subscribers by provider in Estonia-2004-2007 19
Table 9-Subscribers to bundled services in Germany-July 2007 24
Table 10-Statistical overview of Ireland's broadcasting market-2006-2008 35
Table 11-Take-up of broadcasting services, % of total in Ireland-2002-2008 35
Table 12-Bundled offers by operator in Italy-2008 37
Table 13-Broadcasting sector revenue & investment in Moldova-2004-2007 44
Table 14-Pay TV subscribers by operator in Montenegro-September 2008 45
Table 15-Proportion of households with products from a single provider in the Netherlands-2004-2006 46
Table 17-VoIP revenue in Norway-2006-2007 50
Table 18-Telenor VoIP subscribers-2005-2008 50
Table 19-Telio VoIP subscribers-2006-2007 51
Table 20-Broadband telephony, business and residential sectors in Norway-2000-2007 51
Table 21-VoIP market share by provider in Norway-2006-2007 51
Table 22-Proportion of households with VoIP in Norway-2003-2007 51
Table 23-VoIP traffic in minutes and market share in Norway-2005-2007 51
Table 24-Nationwide all-day audience share by broadcaster in Poland-2003-2007 53
Table 25-Nationwide primetime audience share by broadcaster in Poland-2003-2007 53
Table 26-Subscribers to bundled packages in Portugal-July 2007 56
Table 27-Broadcasting operational statistics in Portugal-2006-2008 56
Table 28-VoIP subscribers in Romania-2004-2007 57
Table 29-Broadcasting subscribers by platform in Romania-2005-2007 57
Table 30-Prime time audience share by broadcaster in Romania-2004-2007 58
Table 31-All day audience share by broadcaster in Romania-2004-2007 58
Table 32-TV households by broadcasting method in Russia-2007 61
Table 33-VoIP connections in Slovakia-2005-2007 66
Table 34-Audience share by broadcaster-prime time in Slovakia-2005-2007 67
Table 35-Audience share by broadcaster-all day in Slovakia-2005-2007 67
Table 36-VoIP market share by operator in Slovenia-2006-2007 68
Table 37-Audience share by broadcaster-prime time in Slovenia-2005-2007 69
Table 38-Audience share by broadcaster-all day in Slovenia-2005-2007 69
Table 39-Broadcasting revenue by platform in Spain-2003-2008 70
Table 40-Broadcasting subscribers by platform in Spain-2003-2008 70
Table 41-Proportion of Telefónica subscribers taking bundled services-2005-2007 71
Table 42-Proportion of cableco subscribers taking bundled services in Spain-2005-2007 71
Table 43-Bundled service subscribers, by sector in Spain-2006 71
Table 44-Residential bundled subscribers as proportion of total in Spain (historical)-2006 72
Table 45-Statistical overview of Sweden's broadcasting market-2008 73
Table 46-VoIP lines in Switzerland-2004-2006 77
Table 47-Prime time audience share by broadcaster in Ukraine-2004-2007 79
Table 48-All day audience share by broadcaster in Ukraine-2004-2007 79
Table 49-Availability of digital services in the UK-2008 80
Table 50-Adoption of digital services in the UK-March 2008 80
Table 51-Proportion of bundled services by type in the UK-2005-2008 81
LIST OF EXHIBITS
Exhibit 1-Overview of media convergence 2
Exhibit 2-Digital dividend frequency availability in Sweden-2008 74
Exhibit 3-Operators' service bundling offers in the UK-June 2008 81
Exhibit 4-Technology developments in bundled services in the UK-2008 82
