1 / 10

Digital Europe: How? February 2014

Digital Europe: How? February 2014. Michael Tsamaz OTE Group Chairman and CEO. Alarming trends for the continent's digital economy. Declining in whole ICT sector. Competitiveness. Eroding market capitalization vs. North America. Industry value. Fragmentation and lack of scale.

hope
Download Presentation

Digital Europe: How? February 2014

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Digital Europe: How? February 2014 Michael Tsamaz OTE Group Chairman and CEO

  2. Alarming trends for the continent's digital economy Declining in whole ICT sector Competitiveness Eroding market capitalization vs. North America Industry value Fragmentation and lack of scale Market structure Declining vs. growing data traffic Revenues 270 bln needed for high-speed NGNs Investments OTT players Additional pressure Harsh framework Regulation

  3. Declining revenues IP traffic Western Europe Telecoms revenues -10% +836% 2016e 2008 2016e 2008 North America +35% +966% 2008 2016e 2008 2016e Asia- Pacific +40% +1006% 2016e 2008 2016e 2008 Source: European Commission (Sept.2013)

  4. Behind in investments Telecommunications investment in EUR per capita EUR US 180 170 Asia Pacific 130 EU Source: OECD Communications Outlook 2013. Asia: Japan, South Korea, Australia, New Zealand. Data estimated for 2012 and 2013. Asia Pacific: Japan, South Korea, New Zealand, Australia. Source: OECD.

  5. OTTs versus Telcos: No level playing field European employees 22,000 11,000 • 1.2bn • In the next 4 years • Only in Greece European investments Very low • 1bn (2012) • For taxes & other social contributions • Only in Greece Income taxes in Europe Little or none Source: OTT data for largest EU countries (DE, FR, UK), plus EU HQs (Amazon Luxembourg, Google Ireland)

  6. Regulation stifles growth Return on Capital: Incumbents vs. Unbundlers Favouring non-investing unbundlers Source: Bernstein Research, BCG. 1 BT, DT, Orange, TEF. 2 BSkyB, Iliad, Jazztel, TalkTalk, United Internet EU regulation complex & intrusive vs. US & AP Source: OECD, McKinsey • Ladder of investment • Essential facility • Spectrum auction The myths of

  7. The Greek challenges Challenging macros Challenging telco market Market consolidation/partnering Enhanced FMC offerings Aggressive pricing Incumbent main investor Regulation • Private consumption: -30% • GDP: -25% 2008-2013

  8. The Greek challenges Regulation • Pricing • IP transformation / VoiP • Vectoring • Universal service

  9. ICT can lead Europe back to the top Vision for EU’s ICT ICT = Growth and employment • 21% of GDP growth • 10pp up in broadband penetration = 0.9-1.5 pp up in annual pc growth • Productivity growth: • 31% Europe • 59% USA • 2.6 new jobs for every one lost • Regain leading position within next 10 years • Telecom network infrastructure (fiber, LTE, Intelligent networks) • Software and hardware • Internet Services Source: McKinsey, ifo, European Commission. Key priority • EU policies alignment for consistency and credibility of decision-making

  10. ICT can lead Europe back to the top Key measures to restore EU competitiveness, investment & growth BOOST Digital infrastructure development Digital infrastructure development DEREGULATE Digital infrastructure development Regulated telecoms markets EASE Digital infrastructure development Market consolidation and cooperation HARMONIZE Digital infrastructure development Spectrum policy

More Related