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DEVELOPMENTS IN EMERGING TELECOMS MARKETS. Şevket Kaan Ağaoğlu Country Senior Officer – Alcatel-Lucent Azerbaijan April 2010. Emerging Markets Growing Faster than Mature Markets. Services &HLN are leading the growth. 15. 13. 12. 9. MATURE MARKETS. EMERGING MARKETS. Western Europe.
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DEVELOPMENTS IN EMERGING TELECOMS MARKETS Şevket Kaan Ağaoğlu Country Senior Officer – Alcatel-Lucent Azerbaijan April 2010
Emerging Markets Growing Faster than Mature Markets Services &HLN are leading the growth 15 13 12 9 MATURE MARKETS EMERGING MARKETS Western Europe CCSE and Middle East & Africa 29 B€ 24 B€ 1,8 1,2 CARRIER SERVICES APPLICATIONS 2012 Total Adressable Market (B€) 5 % 7 % CARRIER 3 % 4 % 5 % 11 % Wireline CAGR CAGR SERVICES 7 % 11 % 09-12 09-12 10 % 18 % Managed Services 14 % 10 % APPLICATIONS Source: CMO Jan 2010
CIS, Central and Eastern Europe is even growing faster!! CU Benelux 1.62 1.62 0.4% CU CCSE 7.45 8.22 10.3% 2.54 2.47 -2.5% CU CMC 2.41 2.47 2.4% CU France 2.75 2.82 2.6% CU Germany 2.03 1.95 -3.9% CU Iberia 7.45 7.73 3.7% CU MEA 3.1% 5.18 5.34 CU North
Growth is in Services and High Leverage Networks (HLN) 21.94 22.62 3.1% Carrier Markets 3.40 3.32 -2.3% Wireline IP 2.18 2.29 5.3% Optics 4.03 4.20 4.1% Wireless 8.93 9.37 4.9% WiMAX 0.20 0.27 31.8% PASD 3.20 3.18 -0.7% Applications Markets 2.96 3.07 3.9% Services Markets 6.53 6.93 6.1%
Competitive Pressures Increase Ukraine Uzbekistan Kazakhstan 5 | April 2010
Emerging Markets:Trends in a nutshell Continuing • Voice will remain the biggest revenue generator with mobile voice continues to dominate • 3G deployment continues (Ghana, Benin, Tunisia), plans for LTE developing (Bahrain, Egypt, Saudi Arabia, Senegal, SA, UAE, Uzbekistan), FTTx trial and niche deployments • Consolidation among mobile operators occurs as well as expansion in the number of mobile operators amid new license awards. Rapid growth • In data • VoIP begins to accelerate into a significant proportion of voice traffic • Further development of traditional banking and payment services • Nascent content and application ecosystem • Proliferation of MVNOs, hosted by smaller networks
Key Business Drivers : Service Providers (1/2) • The key drivers shaping up Service Provider’s investment decisions over the next 18-36 months is the migration to next generation access technologies; competitive pressures are also pushing SPs to continue innovating • Service providers are investing in 3G+, LLU and NGN technologies. They expect their existing (in mature markets) or future (in emerging) broadband-services-related investments to continue to drive their build activity. • Mobile operators are looking at 3G and HSPA+ investments, while fixed SP plan to maintain TDM networks and continue to build out their NGN. • Executives point to intense competition, the need to offer triple and quadruple play services and shared networks, as the main drivers for further network investments mainly in mature markets.
Key Business Drivers : Service Providers (2/2) • The main pain points identified by SPs in managing their business and network is the complexity of evolving and converging business models, the need for scale and a challenging economic climate (especially in emerging markets where ARPU is pretty low) • Growing network complexity, costs associated with operating multiple networks, increasing number of applications, backhaul, power and heat, while maximizing coverage (i.e. in rural areas and indoor in e.g emerging markets) • SPs are currently looking for OPEX savings through cost and asset optimization: • In mature markets, they look to network and business transformation as well as outsourcing, • while in developing markets, they look for cost-efficient ways of managing mobile data growth through network transformation and upgraded transport networks. • SPs look to make OPEX improvements by rationalizing and optimizing IT applications and infrastructure and by outsourcing.
ALU Service Approach for Service Providers Multimedia & Rich Communication Broadband Networks Generate new revenuesand create newbusiness models Transformto cost- effectivenetworks Expand networkcapacity Clients Manage business change Be green, eco-sustainability Operations Management Business Change Management • Complex Network Integration • IP Transformation • Mobile Backhaul Services • In-Building Continuity • Mobile Multimedia • Business Consultancy Services • Application Integration • Fixed Multimedia • Mediaroom IPTV • Enhanced IPTV Apps • iTV Operations Center • Network Quality Assessment & Optimization • Network Consolidation & Evolution • Digital TV Head End • Enhanced Video Enablers • MiViewTV IPTV • NOC Services [MNO] • Multivendor Maintenance • Carrier Network Outsourcing • Build Operate & Manage Clients • Consulting • Inventory • Fulfillment • Service Assurance • Managed Infrastructure • Managed End-to-End Service Operations • Billing • Customer Care • OSS/BSS Orchestration • Security Services • Sustainable Power • Modular Cooling