1. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Dr. Sergio Ramos Universidad Politécnica de Madrid sergio.ramosvillaverde@gmail.com dariusz.rozanski@szczesliwice.net

2. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Agenda: This article analyses the different business approaches of European mobile operators to provide bundled services and compare them to fixed operators’ strategies, in order to identify the paths of integration that mobile operators are pursuing This contribution is part of a wider research on the process of telecom sector restructuring, with the objective of identifying the main drivers of change and evolution dariusz.rozanski@szczesliwice.net

3. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Agenda: Previous contributions in this area were focused on fixed operators’ behaviour, and were published in a previous article titled “Fixed Broadband Strategies for Mobility Integration” (at TCN Journal) The overall objective is to show how the future telecom sector structure could look like given the business strategies implemented by fixed and mobile operators dariusz.rozanski@szczesliwice.net

4. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision European Broadband Market Overview EU household penetration of bundled offers (Source: European Commission)

5. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision DSL continues to consolidate its position as the main broadband technology (81.8%). In contrast, broadband over cable, which stands at 15.5%, has decreased by 1.3 percentage points since October 2005. Other technologies (FTTH, wireless local loop –WLL-, satellite, leased lines, LAN using Ethernet protocol, etc.) account for 2.7% Regarding mobile broadband (UMTS, HSDPA, CDMA, Flarion, EDGE), there are 70 operators now offering 3G on a commercial basis and 3G services are now available in all Member States It is estimated that there are around 45 million UMTS subscribers in the EU (Italy being the leader, with 20% penetration) dariusz.rozanski@szczesliwice.net European Broadband Market Overview

6. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Broadband connectivity is being brought by two main competing technologies, cable and DSL After the first commercial offers every operator strategy moves towards services bundling In fact, triple play seems to be the only possible strategy for fixed operators to growth, the main target being the achievement of a critical mass of clients. However fixed operators know the potential of future bundled offers in which mobility is a new added feature, allowing the real fixed- mobile convergence by extending broadband connectivity to mobile dariusz.rozanski@szczesliwice.net Fixed operators’ strategy

7. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Typically 3-play has been related to fixed operators but market evolution and operators behavior are widening this concept As there is an increasing demand of pure mobile connectivity that needs a market response, mobile operators are redefining their strategies. In this sense, some of the options currently present in mobile market are: Integration of fixed-line broadband (like cable or DSL) as a complement to mobile, either via partnerships with fixed-line operators or by means of regulation. Mobile 3G upgrade, like HSDPA. Other wireless access technologies like WiFi or WiMAX (particularly on its mobile version) dariusz.rozanski@szczesliwice.net Mobile operators’ strategy

8. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Vodafone -> life is mobile but… for how long? Orange & Telefonica -> integrated operators, no longer fixed and mobile branches Three -> pure 3G player, continuous mobile technology innovation and Internet services integration (X-Series: Skype, MSN, …) Virgin Mobile -> successful MVNO in the past… and now it operates as Virgin Media (after NTL acquisition of Virgin), being the first agent in UK to offer TV, Broadband, Phone and Mobile Are they mobile players or just access and services providers like any other fixed operator? dariusz.rozanski@szczesliwice.net Mobile operators’ strategy: some examples

9. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision The Mobile Dilemma dariusz.rozanski@szczesliwice.net European mobile operators are facing different market realities that seem to be not fully compatible. On one hand, operators need a certain degree of interoperability so that the applications and content they provide to users are compatible with the “fixed Internet world” but still controlled by the operator and, on the other hand, demand pushes towards more open mobile connectivity that has been provided in a restricted way for the last years

10. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision dariusz.rozanski@szczesliwice.net The Mobile Dilemma

11. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision dariusz.rozanski@szczesliwice.net The Mobile Dilemma

12. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Mobile operators compete among them and fixed players for providing combined services and increasing bandwidth Bundled offers like multiple play can be provided by current fixed and mobile network infrastructures However, future necessities will require higher capacity to achieve 50Mbps downstream (at this moment, commercially possible only for cable operators, as wireless access technologies demand for wider spectrum bands to compete) Given the current 3G spectrum limitations, almost all mobile players are positioning in the broadband segment through different strategies as shown before. From the cases reviewed, only Vodafone seems to doubt about the way forward dariusz.rozanski@szczesliwice.net Conclusions

13. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Are these strategic options enough considering that in the current process of convergence, fixed operators are leading the triple play and have more experience than mobile players in IP and Internet business convergence? Is the future fixed or mobile? Given the market behavior presented, in my opinion fixed-mobile competition will soon be part of the past… Instead, the competition will take place among those who own networks and those who don’t… dariusz.rozanski@szczesliwice.net Some thoughts for the debate

14. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision FMC = Fixed-Mobile Competition? or NSPC = Network-Service Provider Competition? I guess this will be the topic for my next article… dariusz.rozanski@szczesliwice.net Some thoughts for the debate

15. Subject: Analysis of European Mobile Operators Strategies towards Multiple Play Services Provision Thank you very much for your attention! Name: Surname: Company: Phone: E-mail: Sergio Ramos Universidad Politécnica de Madrid - REDTEL +34 647 77 62 50 sergio.ramosvillaverde@gmail.com dariusz.rozanski@szczesliwice.net