IDATE News

N�522 - World Telecom Services Market -

2010-08-23

In the latest edition of its half-yearly report �The World Telecom Services Market� IDATE�s experts are analysing the global recovery and impacts on the telecom services market. Yet the recession did not leave telecom services untouched. In many cases it exacerbated the decline of fixed phone service in advanced countries. Mobile services were unable to sustain growth and even recorded a drop in several advanced markets.

�We continue to expect a gradual recovery in 2010, fueled by growth in emerging economies, and a return to growth in 2011 � comments Carole Manero, project manager and senior consultant at IDATE.

Trends by market
The value of the global telecom services market grew just 0.6% in 2009, which was lower than what we anticipated in our previous publication. After the slowdown that began in 2008 (growth was just +3.5%, down 2 points compared to the 2007 rate), the telecommunications services market again stumbled in 2009 with a rate of less than 1%. This was as much the result of a difficult economic situation as of structural adjustments related to the maturity of the sector in a number of segments and regions. It is
easy to see in this positive growth a sort of resistance to the economic outlook, given that other industries experienced major setbacks. Though they were not spared by the crisis, telecom services were still able to capitalize on the subscription concept underlying their business model.
The global market was worth 1,340.3 billion USD in 2008 and 1,348.9 billion USD in 2009 (.0.6% growth). The global market is increasingly dominated by mobile services (55%), whereas in fixed services, there is a strong shift from phone to Internet, and especially broadband.
Growth of revenue from mobile services continues to drop. Down from 11% in 2007, the worldwide growth of the mobile services market fell by two-thirds over two years to just 3% in 2009. This may seem reasonable given that more than half the planet owns a mobile phone and penetration exceeds 80% in most industrialized markets. Yet a comparison with the dynamic growth in devices (+15.5% in 2009) provides a glimpse into the pressure on revenue per subscriber. This is a natural consequence of the massive influx of low-revenue customers from emerging markets. But the pressure is also noticeable in advanced markets, especially in Europe. The number of mobile customers worldwide has reached 4.6 billion (for monthly growth of some 51 million customers!).
With total sales estimated at 737.5 billion USD in 2009, mobile services remain the main driver of overall growth. They have represented more than half of total global revenue from telecom services for four consecutive years (in 2009 their share was 55%) and have accounted for more than twice that of fixed telephony since 2009.
The decline of fixed telephony began in 2002 and again picked up speed in 2009, plummeting 7%, with revenues falling to 348.6 billion USD. This left its share of the total telecommunications services market at just over one-quarter (26%), compared to one-third in 2006 (33%). In three years, fixed telephony lost 14% of its value. The substitution of landlines with mobile phones, coupled with a shift toward IP, is responsible for the drop in the number of fixed lines in use and the sharp decline in average revenue per line.
With revenues of 262.9 billion USD for 2009, other services (Internet and data) continue to gain ground, driven by Internet services in particular. Their share of total telecom services has slowly but steadily grown, by 0.4 to 0.8 points per year since 2006. It reached 19.5% in 2009 compared to 17.5% in 2006 and less than 15% in 2001. In 2009, for the first time, their contribution to growth was unable to offset the loss incurred by fixed telephony with a whopping 26.7 billion USD loss for fixed voice versus a 12.1 billion USD gain for fixed data. Nonetheless, the surge in Internet services, especially broadband, is remarkable. In terms of volume, the number of fixed broadband customers again jumped by some 58.4 million (+14%) in 2009, amounting to 4.9 million new customers per month worldwide. At this pace, we expect the 500 million customer mark to be passed during 2010. At the end of 2009, high-speed accounted for more than three-quarters (77%) of the world�s Internet connections.

Carole Manero
Project Manager
c.manero@idate.org

For more information please click here or contact us by email or phone

N�521 - World Television Market -

2010-08-27

In the latest edition of its half-yearly report �The World Television Market� IDATE estimates that the worldwide television market in 2009 was 259.3 billion EUR, declining 0.5% compared to 2008. In effect, the industry did not escape the consequences of the global economic crisis; the crisis particularly affected television advertising revenue.

�The worldwide television market was, in 2009, primarily affected by the drop in advertising revenue of 7.9%, which could not be compensated for by paid television or public funding�, comments Florence Le Borgne, director of TV & Digital Content Business Unit at IDATE. �These two sources of revenue increased 6.9% and 3.7% respectively.�

Up until 2008, advertising was by far the primary means of funding for the industry, generating about 48% of the sector's revenue, compared to nearly 43% for paid television and 9.4% for public funding. In 2009, the situation reversed itself and paid television accounted for 46% compared to 44% for advertising. In the years to come, IDATE predicts this trend will become more pronounced and estimates that paid television should generate more than 48% of revenue of the worldwide television market by 2014.

Advertising revenue per media

As a result of the global economic crisis, advertising investment for all media combined declined by 11% in 2009. Television, which has been the primary media invested in ahead of newspapers, has see a drop in advertising revenue of nearly 8%. Despite this, the importance of television in the advertising market (all media combined) remained stable at 41.4%.

Newspapers and radio recorded the deepest declines in advertising investment on a worldwide basis, with drops of 17.8% and 10.7% respectively. During the period of 2006-2009, the importance of newspapers in the worldwide advertising market went from nearly 44.7% to 37.4% while that of radio went from 8.9% to 8.4%.
In contrast, the Internet continued to attract increasing amounts of advertising investment, with an increase in spending of 3% for a market share in the worldwide advertising market of nearly 12.8% compared to 7.2% in 2006.

Project Manager
Florence Le Borgne
f.leborgne@idate.org

For more information please follow this link or contact us per email or phone.

N�520 - M2M -

2010-08-17

M2M worldwide market
Worldwide market represents 14 billion EUR in 2010

IDATE just published the report M2M which indicates that this market is growing very fast after the global downturn. In 2010, the cellular market should represent 53 million modules worldwide for a total market of 14 billion EUR (of which 3.3 billion EUR for connectivity). The economy recovery will drive the M2M market with around 25% in value and 40% in volume (cellular modules, 25% for satellite).

�2009 saw the arrival of such consumer electronics as connected e-readers and connected Portable Navigation Devices (PNDs) in the M2M field.�comments Samuel Ropert, senior consultant at IDATE. �Their success obviously drives the M2M market, mostly in volume.�

Rapid growth in M2M market despite downturn
� In volume terms, the overall M2M market is growing very fast in all wireless markets (cellular and satellite) and in all regions. 53 million cellular modules and over 1.2 million satellite M2M modules are expected to have been sold by the end of this year. Overall growth for the next four years should top 33% per year for cellular modules, reaching 165 million in 2014, and exceed 29% for satellite modules. In 2014, M2M SIM cards will probably represent 2.5% of total SIM cards (human and machine) and over 8.1% of total SIM cards in Europe.
� Growth is clearly lower in terms of value, because new applications are generally less demanding in terms of bandwidth and/or of advanced features. In addition, a large share of the growth will come from major deployments by reference players in their respective industry which should benefit from bulk purchasing. The worldwide cellular M2M market represents 14 billion EUR in 2010, with most revenues coming from software and IT services. It should rise by 23% per year to reach 32.5 billion EUR in 2014. The worldwide satellite M2M market is valued at 1.03 billion EUR in 2010 and will grow by 27% per year to reach 2.7 billion EUR in 2014.
� The connectivity market for mobile telcos represents 3.1 billion EUR worldwide for 2010 (over 37% for Europe 27). This market should grow by a little over 24% per year during the next four years.
� The main reasons associated to this dynamic growth in 2010 refer directly to economy recovery and the consumer electronic devices arrival.

Samuel ROPERT
Project Manager
s.ropert@idate.org

N�519 - TV Channels' quadruple screen strategies -

2010-08-13

IDATE has just released the "TV channels� quadruple-screen strategies" report, which draws on a large body of case studies for an in-depth analysis of the key players of the audiovisual industry. This report provides a general overview of the different diversification strategies of TV channels on the four types of screens.

"PC screens are currently favored by both channels and viewers for catch-up TV", says Florence Le Borgne, Director of the TV & Digital Content Business Unit, "and with more than half of all the services offered, the Internet remains the main driver of growth for on-demand video services in Europe.�

The trend in time-shifted content
Among the recent consumption trends, time-shifted content is clearly the most important phenomenon. Solutions to view TV programs at a different moment than their normal broadcasting time are now numerous throughout the range of digital recording devices and catch-up TV or VoD services � both available on the Internet or directly on TV.
As a natural extension of the old VCRs, Digital Video Recorders (DVRs) have come to occupy a central place within the typical household. The penetration rate of DVRs is steadily progressing, largely driven by the policies of pay-TV players, including cable and satellite TV operators, which increasingly include this feature within their set-top boxes. This strategy is motivated by the fact that subscribers equipped with a DVR generate a higher ARPU and lower churn than other subscribers.
In addition, most DVD players now offer digital recording, while consumers can also buy a dedicated terminal such as the TiVo products in the US.
Among the mature TV markets, the United Kingdom has the highest DVR penetration rate, with more than 35% of households equipped by September 2009. At the same period, the US crossed the threshold of 30% of TV households equipped, against 21% in France.

In parallel to this trend, over the last few months on-demand audiovisual media services have multiplied on all the main TV markets. The Internet is the main driver of this growth: in late 2008, it gathered 56.6% of on-demand services available in Europe. In the TV market, IPTV players are the most dynamic in terms of release of new on-demand services, representing 30% of all services available in Europe by late 2008. So far, cable and satellite operators are much less active, while DTT services are currently only present in Britain.
Within the last two years, more than 500 new services of on-demand audiovisual media have emerged on the different European networks; Internet has been the most dynamic medium, with a service offer climbing from 94 services in late 2006 to 394 services in late 2008, more than a fourfold increase in two years.

Although recorded broadcast is still very far from competing with live TV, it is still growing rapidly in both number of users (+22.3% between Q4 2008 and Q4 2009 in the US) and monthly consumption per individual (+28.3% over the same period). In late 2009, the US market thus had 90.8 million consumers of recorded broadcast, each watching an average of nearly 9.15 hours of recorded programs each month (553 minutes) (source: Nielsen - Three Screen Report Q4 2009). In France, while the playing time of live TV was 3.25 hours per person per day in 2009 (source: M�diam�trie - M�diamat - Individuals aged 4 and over), consumption of time-shifted programs barely reached 7 minutes (daily consumption among individuals aged 15 and over, source: M�diam�trie - Global TV Wave 3 - April-May 2009), including 3 minutes of recorded programs (VCR, DVD recorder or PVR), 3 minutes of catch-up TV and 1 minute of stored or burned programs.

Still in France, viewers of catch-up TV topped 10 million over the April-May 2009 period, against four million between October and November 2007, a 160% increase in a year and a half. After the legacy terrestrial channels, DTT channels and thematic TV channels have launched catch-up TV services while the average recovery of older services continues to make progress.

Project Manager
Florence Le Borgne
f.leborgne@idate.org

N�518 - Serious Games -

2010-07-09

Serious Games
A 10 billion euro market in 2015

IDATE has just released its �Serious Games� market report which provides in-depth analysis on the different markets, and their growth outlook up to 2015. The top serious game market players are profiled, along with the sector�s latest trends.

�This report provides readers with a comprehensive portrait of the serious games market through an analysis of its impact on the video game industry�s value chain, and by examining a series of business models,� explains Laurent Michaud, Head of IDATE�s Digital Home Entertainment Unit. �Up until now, serious games have been designed to be played on a computer, but mobile handsets are already much more widely used in emerging economies which makes them the platform of choice for the development of serious games.�

The serious game sector is expected to grow significantly in the medium term. IDATE estimates that it currently generates 1.5 billion EUR in revenue around the globe, and that by 2015 sales will be almost seven times what they are in 2010 � with an average annual growth rate of 47% between 2010 and 2015. Plus, we can expect to see the business world�s interest in serious games increase around 2013, and especially small and medium enterprises (SME) whose awareness of these tools is still rather limited.

An original value chain

The value chain for serious games has fewer links than the classic video game chain. The most common structure is a single player that handles the development, publication, distribution and sales of its games. A great many players actually publish only a single title whose sales and installation/implementation for customers occupy its entire sales and support staff. Low-end instruments are the most widely used development tools in the sector today, as they are the only ones that most developers can afford � with high-end gaming engines costing in excess of 250,000 USD. At this stage in the serious gaming sector�s development, the value chain is more software and service-centric than device-centric. Here, most serious games are designed to be played on a computer, and few have been developed for other platforms. The mobile phone is still the device that currently offers the most interesting alternative to the PC, and it is also the platform of choice for the development of serious games in emerging economies where people can get hold of a mobile much more easily than a computer. Serious gaming software is still more important than any service that might be associated with it. In other words, the most common configuration is a user playing the game alone and usually locally, as opposed to online. But serious games are not meant to replace existing forms of information, communication or training, but rather to flesh them out and enhance them with interactivity, GUI and a video game�s ability to plunge the user into an environment where she will be more receptive to the message being transmitted. Plus the social aspect of a serious game, which fits naturally with a multi-user or even a massively multiplayer approach, will be the prime areas of focus in the coming years, for both the �player� of the game and the professional using it as a tool.

As a result, serious games cannot do away with:

� professional support for the game;
� an associated service (aside from management of the application and its functionalities in software-as-a-service mode) which:
- trains future users of the serious game, whether they are professionals, citizens, consumers or students;
- regularly tailors the application to the situation;
- configures the game, possibly remotely, according to the targeted users, patient, citizen or learner/student;
- collects the results from use of the serious game, interprets them, shares them and injects them back into the gameplay to help the player progress.

Laurent Michaud
Project Leader
l.michaud@idate.org

N�516 - LTE forecasts worldwide -

2010-06-14

IDATE forecasts the rates of LTE adoption in 2012 and 2015. �By �LTE adoption�, we mean the number of subscribers who access the mobile data via the LTE network.� says Fr�d�ric Pujol, Mobile Broadband Practice Director, �As at end 2015, we expect 13% of the subscriber base to be accessing LTE networks with discrepancies depending on countries.�

More specifically, LTE subscribers should grow in the 2012-2015 period from 27 million to close to 300 million at end 2015 (EU5+Scandinavia, Japan, South Korea, China, USA).

� The GSA (Global Suppliers Association) is reporting 110 LTE network commitments in 48 countries at end May 2010. Up to 22 LTE networks should be in service by end 2010 and up to 37 LTE networks should be in service by end 2012.

� We based our estimates on estimated commercial launches of LTE services in 5 distinct regions/countries i.e, the USA, the EU5 plus Scandinavia, Japan, South Korea and China. They all have different backgrounds which affect their adoption of LTE and latest news is mentioned in each sub-sections.

� We think LTE services will not be launched before end 2011-2012 in EU5 and China, and not before end 2010-2011 in the USA, Japan and South Korea. We took into account recent commercial launches in Scandinavia.

� Regarding India which started 3G and BWA spectrum auctions in April 2010, the country cannot be ignored because of its huge population. IDATE expect LTE adoption could be driven by TD-LTE if BWA spectrum can be used for this technology in India.

N�515 - World Telecom Equipment Market -

2010-06-09

Following a productive year in 2008, the telecom equipment market posted a decline worse than anticipated shrinking by 3.6% in infrastructure and by 9.9% in mobile handsets during 2009. In 2010, the global telecom equipment market growth rate is expected to remain stable as operators will still be cautious and wait for a gradual expected return to growth.

� The year 2009 was without a doubt a tough one for the telecom equipment market, as anticipated. With the confirmation of the warnings that began being sent out in the summer of 2008, equipment manufacturers were heavily affected displaying weak or bad performances. In particular, Nortel now under bankruptcy has been the first victim of the gloomy market conditions. Indeed, with the new economic conditions investments schedules were carefully revised. And operators had to establish priorities in network expenses.

� For the first time in 5 years, operators' capital expenditures declined in 2009 by 4.8%. The worldwide investment spending by telecom operators significantly decreased during 2009 totalling to 174 billion EUR. Both fixed and mobile CapEx reduced, by -4.0% and -5.5% respectively. This decrease is a combination of facts with the strong currency (US) devaluations, the gloomy economic context, the end of a five year network infrastructure investment cycle, the weak momentum in broadband access backing and the awaited 3G licence auctions.

� Operators' objectives in terms of very high speed broadband and mobile broadband penetrations will help boost up the telecom equipment market. Given the announcements made by major incumbents to massively deploy FTTx lines in the United Kingdom and USA, the fixed broadband access equipment market will increase gradually over the next two years and accelerate until 2015. In the mobile sector, despite LTE network deployment schedules and 3G/4G licenses awards - long awaited, the mobile access market is expected to hardly grow in 2010.

� In 2010, the global telecom equipment market growth rate is expected to remain stable as operators will still be cautious and wait for a gradual expected return to growth. Basically, operators' expenses will be selective while keeping their investments in IP-based equipment and optical transmission in order to meet the ever-increasing bandwidth requirements of businesses and consumers. Operators' objectives in terms of very high speed broadband and mobile broadband penetrations will help boost up the telecom equipment market. Given the announcements made by major incumbents to massively deploy FTTx lines in the United Kingdom, Brazil and China, the fixed broadband access equipment market will increase gradually over the next two years and accelerate until 2015. In the mobile sector, with LTE network deployment schedules and 3G/4G licenses awards - long awaited, the mobile access market is expected to slightly grow in 2010.

Figures included in the IDATE News (to be downloaded)
> Fixed CapEx: Contribution of each region, 2009 (million EUR)
> 2009 Handset providers market shares - Worldwide
> 2009 Top 10 Network equipment providers in terms of revenues - Worldwide

N�514 - FTTx markets making swift progress -

2010-06-02

There were no major upheavals in the global Ultra Broadband market in the second half of 2009, and it continued to develop steadily in most parts of the world in terms of subscriber numbers and homes passed.

�But beyond these figures that reflect the current situation, there have been several announcements from private operators and governments that have confirmed the interest in very high-speed access in most parts of the world,� says Roland Montagne, Head of IDATE�s Telecom Business Unit.

According to IDATE Senior Consultant, Val�rie Chaillou, �The FTTH market�s growth momentum carried on into the second half of 2009, pushing the global base to close to 41 million FTTH/B subscribers by year-end, which marks a more than 16% increase in six months�(*).

Over the next five years, this momentum is likely to translate into a significant increase in the number of homes passed: by the end of 2014, there will be close to 306 million homes passed for FTTH/B around the globe, of which more than half will still be located in Asia and 18% in Western Europe.

� On the matter of subscribers, Eastern Europe, which has already pulled ahead of Western Europe, with 3.5 million FTTH/B customers, compared to around 2 million in the west, is forecast to have an even bigger subscriber base than North America starting in 2012. Some countries in that part of the world, such as Lithuania, have a particularly dynamic market and, in addition to swift and vast rollouts, are managing to persuade the eligible households to subscribe to ultra high-speed access offers.

� Elsewhere, and especially in Asia, marketing the services has become operators� primary concern, since coverage rates have already reached the saturation point in the most advanced markets. HKBN in Hong Kong is the operator marketing the most competitively priced offer of anywhere in the world: 1 Gbps for 26 USD a month.

� In 2014, 18 countries will have deployed optical fibre networks to more than 50% of homes, which is 10 more than at the end of 2009.

__________
* FTTx subscriber numbers increase to 63 million when we include the following technologies: FTTH/B, VDSL, FTTLA, FTTx+LAN.

Top 10 countries in terms of FTTH/B subscribers, end of 2009

Rank # Country = FTTH/B Subscribers
1 # Japan = 17 140 000
2 # South Korea = 9 228 300
3 # USA = 5 700 000
4 # Russia = 3 040 000
5 # Taiwan = 1 675 000
6 # Hong Kong = 770 000
7 # China(1) = 710 000
8 # Sweden = 537 100
9 # Italy = 325 000
10#France = 308 200
________
(1) Not included are the roughly 17 million FTTx +LAN subscribers in China.
Source: IDATE

Top 10 FTTx operators around the world at the end of 2009 (in number of subscribers)

Rank # Operator / Main technology & architecture = FTTx Subscribers
1 # NTT (Japan) / FTTH/B GEPON = 12 779 000
2 # China Telecom(1) / FTTH - FTTx+LAN EPON LAN/DSL = 11 160 000
3 # China Netcom(2) / FTTH - FTTx+LAN EPON LAN/DSL = 5 590 000
4 # KT (South Korea) / FTTB EPON/GEPON = 4 630 000
5 # Verizon (USA) / FTTH BPON/GPON = 3 430 000
6 # SK Broadband (South Korea) / FTTB/LAN GEPON = 3 032 099
7 # ER Telecom (Russia) / FTTB = 2 140 000
8 # AT&T (USA) / FTTN VDSL2 = 2 100 000
9 # Chunghwa Telecom (Taiwan) / FTTB GEPON = 1 639 824
10# LG Powercom (South Korea) / FTTH/B EPON/GEPON = 1 566 206
______________
(1) of which 560,000 FTTH subscribers and 10.6 million FTTx/LAN subscribers.
(2) of which 90,000 FTTH subscribers and 5.6 million FTTx/LAN subscribers.
Source: IDATE

N�513 - Mobile Network Saturation -

2010-05-20

The mobile data market is taking off at last. The significant growth in mobile data traffic has been made possible by the combination of advanced technological and marketing enablers, with most of them reaching "satisfactory" status levels. 3G coverage has really expanded. The massive adoption of smartphones (including the iPhone) partly explains part this growth. These devices have recently improved and are customized to facilitate mobile data and especially video and social networking services. Dedicated tariff plans are also making headway. Application stores which were in the spotlight in 2009 provide easy ways to access additional content and software on mobiles.

�However�, says Fr�d�ric Pujol, Mobile Broadband Head of Practice at IDATE, �related mobile data traffic has triggered congestion�. Network congestion leads to dropped calls and interruptions to Internet access. Certain sources reported MNOs congestion problems in urban dense areas late 2009. Frustrated or dissatisfied customers may thus choose to churn, thus threatening MNOs profitability.

To cope with congestion problems, mobile operators have to combine several solutions depending on the characteristics of their networks and the costs incurred. They also need to revise their strategies and consider this issue globally from technical, marketing and strategic standpoints. Among the technical options available, acceleration of 4G/LTE deployment is currently the favoured solution when compared to WiMax. However, we estimate it will not be widely available before 2013. Offloading data traffic to Wi-Fi networks is likely in the meantime as it is cost effective and can be accomplished almost immediately. In addition, new pricing schemes are required in the coming months. They should be based on customer usage.

�Given traffic assumptions based on average per user consumption and estimated capacity�, says Carole Manero, Project leader of the report, �we estimate that, on the whole, MNOs will be able to support the growth in mobile data traffic�. Congestion problems may however arise in dense areas and at peak hours. MNOs that decided to postpone network investments in 2008-2009 because of the global downturn will also have to speed up networks improvements to address congestion issues.

N�512B - IDATE initiatives on the Web -

2010-05-11

To mark the release of the 10th edition of its DigiWorld Yearbook, IDATE is offering an update of its online initiatives. �The various communication tools that are so easy to access on the Web are enabling us to really streamline communication on our various consulting operations, the market reports we�re publishing and the work we are doing to promote international discussions on the economic and strategic issues surrounding information technologies,� says IDATE CEO, Yves Gassot.

DigiWorld Yearbook available for eBook, the iPhone and the iPad

This 10th anniversary edition provides us with an opportunity to offer the work in various versions. Alongside the print edition that is available in English and French, several digital versions of the report � which were created thanks to the savoir faire of digital publishing specialist, Aquafadas (www.aquafadas.com) � are now available as well: an ebook version that provides dynamic access and can be read on a computer and certain ebook readers, along with dedicated iPhone and iPad versions.

> www.digiworld.org : complete information on the dedicated DigiWorld Yearbook 2010 website

The yearbook and its different versions can be ordered online from the dedicated website, from the IDATE website or from the Apple App Store, at the following prices: Print edition: �29.90, incl. VAT � eBook & iPad: �24.90, incl. VAT - iPhone: �14.90, incl. VAT

Find all the latest IDATE news online

IDATE�s online presence has expanded into new arenas, offering users a variety of access points to meet their needs:
� The general site that provides information on all IDATE activities: www.idate.org
� The site dedicated to promoting and marketing the reports published by IDATE analysts and consultants: www.idate-research.com
� The site dedicated to IDATE�s annual conference: www.digiworldsummit.com
� The site dedicated to the Communications & Strategies economic journal: www.comstrat.org
� The IDATE blog, offering expert analyses of the latest ICT industry news: www.idate.fr/blog
� And those who want to keep closer track of IDATE and DigiWorld Summit activities can find us on Facebook, Linkedin and Twitter.

N�512 - IDATE releases the 10th edition of its Yearbook -

2010-05-11

IDATE has released the 10th edition of its DigiWorld Yearbook which provides readers with a detailed snapshot of the state of the digital world. It includes the best of the past year�s analyses from IDATE experts who monitor developments in telecom, Internet and media markets around the globe year-round, along with reference data and a look at the innovations worth watching�

The first official launch party took place on 12 May 2010 in Paris and will be followed by launch parties in London and Brussels.

__________________________________________________________________________________

The DigiWorld Yearbook is published in English, French and Spanish (in partnership with the Enter foundation), and a series launch ceremonies for the report will be taking place across Europe: in Paris, London, Brussels and Madrid. The release of this 10th anniversary edition, will also be marked by the launch of a dedicated website for the DigiWorld Yearbook which will be available this year for the first time in eBook, iPhone and iPad-compatible versions

www.digiworld.org

__________________________________________________________________________________

�There is no denying that figures for DigiWorld markets in 2009 are rather grim,� says Didier Pouillot, the manager of the DigiWorld Yearbook project, �as they posted a record-breaking 1.5% drop in sales�. Only one of the six segments that make up this sector enjoyed slight growth, namely telecom services which increased by 1.8% � although this can be attributed chiefly to the ongoing growth of emerging markets, whereas the vast majority of mature markets suffered a significant decline. On the whole, hardware segments have been harder hit than services.

It is nevertheless worth pointing out that DigiWorld markets have weathered the economic downturn better than many other sectors: although these markets progressed at the same pace as the economy as a whole (global GDP also shrank by 1.6%), this actually marks an improvement from the several years when the markets had been performing worse than global GDP. Especially noteworthy is the fact the rise in connections and consumption has been ongoing, despite (and in some cases because of) the fact that both businesses and consumers have been tightening their belts. So 2009 was yet another spectacular year in terms of mobile subscriber growth, with 550 million new customers signing on, and even a record year for broadband, with a user base that grew by 66 million subscribers worldwide.

These developments, which have been taking hold year after year, have ultimately gone a long way in shaping the digital world. This 10th edition of the DigiWorld Yearbook provides an opportunity to take a look back at a decade of tremendous change, which has included:

� a global mobile user base that has increased tenfold, going from 477 million at the end of 1999 to close to 4.5 billion at the end of 2009;

� the creation and widespread deployment of broadband, which was only just nascent ten years ago and now boasts a base of over 450 million households around the globe;

� the switch from virtually all analogue TV broadcasting in the late 1990s to now close to 50% of TV households having gone digital.

Consumption has of course increased in kind, and in an especially spectacular way when it comes to the Net. VoIP, which was still fledgling at the start of the century, is almost a commonplace in many industrialised countries, and IPTV is rapidly gaining ground. As to the new market players, we have witnessed the meteoric rise of companies like Google, Amazon and Facebook. Google has quite simply become one of the most highly valued ICT companies while Facebook, which didn�t even exist 10 years ago, now boasts over 400 million users.

In his introduction to the Yearbook, IDATE CEO, Yves Gassot, admits that 2009 does not appear to have been the stage for any stand-out events as the headlines were dominated by the markets� vulnerability or, on the contrary, ability to weather the recession. The iPhone 3G and Android OS had been rolled out in 2008 and we had to wait until� 2010 in Europe to see a 3D film become a global smash, and for the launch of the iPad and the first Google phone.

Gassot nevertheless points to three trends in 2009 that will have a particularly sizeable influence on the months ahead and underscores the fact that, despite the recession, digital industries have continued to thrive and innovate:

1. the first congestion problems on mobile networks due to the growing use of smartphones, dongles and netbooks. At year-end, data accounted for the majority of traffic travelling over cellular networks. This marks the onset of a profound change in the economic equation for mobile operators, of their taking the measure of investments needed to deploy 4G-LTE, but also of a changing Internet of new applications and transformations in many markets (print media, publishing, healthcare, etc.);

2. the growing use of video is one of the main elements driving the rise in online traffic (accounting for 40% to 60%, depending on the estimates), which has at least three consequences. It makes questions over connected televisions all the more pressing, and adds another dimension to Net neutrality debates. Contrary to the commonly held belief, traffic differentiation is already a widespread practice among CDN market players and on the infrastructure deployed by the leading content aggregators. Lastly is the observation, especially in Europe, of the difficulties being had in implementing cohesive, large-scale superfast broadband rollout plans that meet the imperatives of fair competition while also encouraging operators to invest and take initiative. The end result is that the European model for organising the telecom sector is coming into question.

3. The third trend is the growing weight of social networking sites in the time that users spend online, in their changing communication habits and in the sites� prescriptive powers with a business model that is increasingly dominated by platform strategies (e.g. hosting video games and other applications from outside providers). One of the main issues is determining the extent to which Facebook, which in 2009 alone went from 130 to 350 million registered users, will take on the status of the Web�s main marketplace and of Google and Apple�s main rival.

In his foreword to the Yearbook, IDATE President, Francis Lorentz, speaks of the options that public authorities will be facing as the economic situation improves, which will provide Europe with an opportunity to focus its attention on a collective approach to a few key matters. In particular, he suggests:
1) strengthening financial and regulatory schemes in support of seedlings which have the greatest chance of conquering new technological and economic frontiers,
2) stepping up changes in universities which must act as the hubs of technology clusters and innovation policies,
3) being actively involved in deploying the Internet of the future by supporting two or three priority projects that are in the public interest, in areas such as e-health and smart grids.

N�511 - Social Networking tools -

2010-05-07

Social networking tools for improving the user experience on free TV/video sites

In late April, WAT.tv, the video site operated by French TV broadcaster TF1, rolled out an upgrade that included sharing, recommendation, rating and Facebook streaming tools.

"Thanks to these new features, Wat has expanded the social dimension of its service and is offering users a richer and more engaging experience by capitalizing on the popularity of the globe�s biggest social network (more than 400 million members),� says IDATE senior consultant, S. Girieud, while pointing out that, �this partnership with Facebook should help attract and keep new users and/or generate more traffic on the online video platform, and so help boost the ad-based monetization of its inventory�.

The data portability solutions developed by the top social networking sites (Facebook Connect, MySpace Data Availability and Sign-in-with-Twitter) allow free online TV and video services, such as TV networks� websites, VoD services, video websites, etc., to incorporate tools from the most popular social networks (e.g. Facebook Live Feed, Twitter feed, etc.), which will help build and keep users and generate more traffic, and so improve their ad revenue potential. Incorporating the core tools from the most popular social networking sites allows free online TV and video services to offer a richer user experience and so to build its audience (increase the number of users and traffic, time spent on the site, page views, etc.), and so to improve its ad space sales.

By integrating a major social network�s most popular tools (Facebook�s Live Feed, Twitter�s tweets), free online TV/video services such as TV channel Web sites, VOD services and video sharing platforms can offer their users a richer viewing experience. Better experiences in turn help create and retain audience and/or additional traffic (more visits and visitors, more time spent, more page views) and thereby generate more ad revenue from a site�s inventory. This is also a way for sites to continue to develop their services, to innovate and to fulfill their users� potential desire for interactive and community features. Social tools are seeing more and more demand from Web users and are gradually moving from �nice to have� features to �can�t live without� necessities.

IDATE has published a report, Social Video, addressing these questions, presenting key figures for the social networking and online video markets and describing the major innovations spawned by the meeting of social networks and video. The challenges and strategies of the players on the field are detailed in case studies. For more information click here

Project Leader
Sophie Girieud
s.girieud@idate.org

N�510 - Ultra-Broadband via Satellite -

2010-04-29

Ultra-broadband via Satellite
Is satellite indispensible to the supply for end-user access?

After having had a mixed reception in the early 2000s, two-way Internet access via satellite has been enjoying a revival for the past two years or so � especially in North America, Asia and now in Europe as well. Government programmes for reducing the digital divide, along with the gradual migration to ultra high-speed solutions are allowing satellite technology to play an ever-increasing role in the landscape.

"IDATE estimates that between 2010 and 2014, the number of broadband satellite subscribers in Europe and North Africa will increase by 45% annually, to reach 610,000 subscribers in 2014 compared to close to 138,000 at the end of 2010," says Project Manager, Maxime Baudry.

Main trends in ultra high-speed access via satellite
� With the growing number of programmes in Europe aimed at reducing the digital divide, satellite needs to capitalize on its assets to be among the potential technological solutions.
� Attracting even greater focus than the digital divide in Europe is the race to deploy ultra high-speed access.
� In the battle with terrestrial technologies, and particularly wireless ones (3G and LTE), satellite technology needs to leverage its assets � the main one being immediate availability at a reasonable cost.
� IDATE believes that ultra-fast broadband via satellite is a market that is poised to grow a tremendous rate in the coming years, not only because of programmes devoted to reducing the digital divide but also the efforts to deploy ultra high-speed solutions, as satellite will have an advantage in rural areas over LTE and FTTx which would not be cost effective solutions.
� While the Ka band is developing in Europe, and elsewhere around the globe, the future of ultra high-speed access via satellite could develop in even higher frequency bands that would enable speeds of over 100 Mbps by 2020.
What is the real market outlook for satellite technology when competing with terrestrial technologies, both wireline and wireless? What positioning strategies hold the greatest potential for satellite access providers, given the features of the broadband market in the different geographical areas being targeted? What future satellite technologies are currently in the works?

IDATE�s market report devoted to ultra-broadband via satellite provides the answers to these questions, among others, and supplies up-to-date figures on both the satellite and competing markets.

Project Manager
Maxime Baudry
m.baudry@idate.org

N�509 - Digiworld Yearbook 2010 -

2010-05-11

The public launch ceremony for the latest edition of our annual report:

DIGIWORLD YEARBOOK 2010
The digital world's challenges, as viewed by IDATE experts

will take place:

- in London on Thursday, June 17th 2010 from 6:00pm to 8:00pm
The presentation of the report, offered to the attendees and their guests, will be followed by a round-table : "Who is financing the Internet of the Future?"
with:
. Steve Durbin, Livingston Consulting (Chair)
. Katja Benyon, Principal, Strategy, Ofcom
. Mike Corkerry, Executive Director, EMEA Regulatory Affairs, AT&T
. Steve Jordan, Head of European Regulatory Policy, O2 Telefonica
. Anna Mallett, Controler Business Strategy, BBC
. Scott A. Puopollo, Vice President, Global Head, Service Provider, Internet Business Solutions Group, Cisco.

- in Bruxelles, on Monday, 21 June 2010 from 6:30 to 8:00pm
The presentation of the report, offered to the attendees and their guests, will be followed by a round-table : "Who is financing the Internet of the Future?"
with:
. Detlev Eckert, Senior Advisor to the Director General in the DG Information Society and Media, European Commission
. Gabrielle Gauthey, Directrice des Relations Institutionnelles, Alcatel-Lucent
. Vianney Hennes, Senior Vice President, European and International Regulation France Telecom - Orange
. Dr. Jan Krancke, VP Regulatory Strategy and Economics, Deutsche Telekom
. Dr. Bruno Soria, Regulatory Services Director, Telefonica

- in Paris on 11 May from 6 to 8 pm at the Intercontinental Hotel, 2 rue Scribe, 75009 Paris (upon invitation only)
The presentation will be followed by a special keynote from our guest of honour, St�phane Richard, CEO, France Telecom - Orange.

N�508 - TV 2010 -

2010-04-07

World Television Market
The World Television Market in 2009 represent a total amount of 268.9 billion EUR, declining 1.2% compared to 2008.

IDATE provides regular analyses of the world television markets' main trends - technologies, revenues and services. On the occasion of the MIP TV in Cannes, France (12-16 April 2010) IDATE have teamed up to publish an exclusive edition of its special white paper: �TV 2010 -Markets & Trends� taken from several IDATE market reports.

The worldwide television market was, in 2009, primarily affected by the decline in advertising revenue of 9.2%, which could not be compensated for by paid television or public funding; these two sources of revenue increased 7.2% and 3.5% respectively. Up until 2008, advertising was by far the primary means of funding for the industry, generating about 50% of the sector's revenue, compared to 40% for paid television and 10% for public funding. In 2009, the weight of advertising and subscriptions each accounted for about 45% of the sector�s revenue. By 2010, revenue from paid television should exceed overall advertising revenue worldwide, reaching a ratio of approximately 47%/44% by 2013.

Pay TV as new driving force in broadcast revenues has to evolve

Despite the fact that it is weathering the economic crisis rather well, pay TV will need to evolve in the short term as a result of a host of factors, mostly related to technology, competition and consumption patterns.

High-definition (HD) TV, which is currently a short-term source of differentiation and increased ARPU for pay-TV operators, will soon be relegated to the everyday as DTT becomes the norm. Although 3D could reinvigorate innovation-based competition among pay-TV services over the longer term, a number of obstacles still need to be overcome before this technology can take off.
Faced with competition from more multichannel free-to-air offerings on DTT and the success of video-sharing platforms, pay channels must work even harder to offer value-added programming and services to build subscriber loyalty and attract new customers. Theme channels have the weakest business models and therefore are the most threatened.
As video consumption becomes increasingly independent of a TV schedule, pay-TV operators are gradually implementing solutions to meet viewers� need for flexibility and personalization. These services act as additional sources of revenue for these operators.
The predicted development of mobile TV is also expected to impact the sector, though for the time being mobile TV/video is still far from being a leading mobile service�users consider it more as a "nice-to-have" than a "must-have." Regular, sustainable patterns for mobile viewing remain to be established; they are currently limited to occasional use by a small percentage of savvier consumers.

Television 2020 � The Web Migration

All the conditions for the television industry�s migration to the Internet are now in place:
� consumers are comfortable with online visual consumption;
� technical solutions that give users access to Internet content on their television sets have been implemented;
� open Internet access is possible from mobile telephones;
� premium content is available on the Web;
� online video quality of service is improving;
� new players from industries related to the television industry have aligned their strategies.

While this migration will be gradual, it will have a deep-seated impact on the industry:
� the exclusive rights model will no longer be the standard;
� some consumers will abandon traditional managed networks;
� a globalization trend will be sparked, to the benefit of the major rights holders.

Unlike the music and print media industries, the TV industry is gaining a strong position on the Web. As a result, television is poised to play a central role in video services. This offensive strategy will likely pay off down the line, but does not entirely eliminate the possibility of destroying value. There are structural reasons for this, including a fiercely competitive online advertising market and a lack of control over program circulation.
Far from being simply transitory, the 2009-2010 economic downturn marks the beginning of a decade of restructuring for the TV industry. This new period will begin with an overall decline in the sector�s resources before increasingly varied consumption patterns spur a new period of growth. The decade running from 2010 to 2020 will also be a period that focuses on cost control, with the industrialization of TV production that will depart once and for all from its historical model, i.e., film. This migration to the Web poses a threat to the European industry in particular.

A reassessment of the television industry�s regulatory strategy appears both necessary and urgent, and will involve the creation of integrated pan-European conglomerates.

Please feel free to download this news as pdf file and also our White Paper TV 2010.

Jeremy George
Sales Department TV & Digital Content

N�507 - Telecom pricing -

2010-03-30

Analysing and comparing telecom prices is both a complex and sensitive subject, involving many and varied parameters. To help better our understanding of these parameters and the impact they have on pricing, IDATE has produced a detailed report on the leading fixed broadband access and mobile service providers� pricing schemes in the major European markets (France, Germany, Italy, Spain and the UK) and in the United States, drawing on an exclusive database compiled by IDATE.

Mobiles
Market positioning and pricing
As for the range of prices charged for mobile services, we observe significant differences between the various markets:
� in the UK, Germany and France, a wide range of solutions is available, targeting a variety of users,
� the selection is more narrow in Italy, while Spain is somewhere between these two extremes,
� finally, in the United States, high volume offers are widely available and have a very concrete impact on the price of light and average consumption baskets.
The terms that apply to on-net/off-net and peak/off-peak calling hours for mobile users are still very distinct, even though the growing shift to flat rates is tempering this to some degree. Mobile data service prices, meanwhile, still vary a great deal, both in terms of the volume included and the way they are capped (in some cases �playing� on access speed).

Sales and billing methods
The main terms and conditions attached to operators� offers, which are just as varied as prices, include:
� purchasing options: in a shop vs. online, packaged offers versus SIM card only,
� minimum contract lengths: minimum contract length for post-paid offers, validity periods for prepaid cards,
� fixed or minimum costs: subscriptions and minimum monthly contract length, prepaid card top up,
� billing principles for voice calls: how call time is measured, differentiation by call destination, peak/off-peak calling distinction,
� billing principles for text messages: differentiation by destination number, according to the type and size of the message, peak/off-peak calling distinction,
� billing principles for mobile Internet use: how consumption is measured (by volume, time, per-connection).

Mobile pricing benchmark (analysis by consumption basket)
We have calculated the price of baskets for different consumption profiles, based on post-paid offers. British operators appear to market the most affordable offers in all cases. German and Spanish carriers, meanwhile, while offering average prices for light users, are regularly among the most expensive for mid-range and heavy users. French and Italian telcos are situated between these two extremes, although we find much greater variations in price in Italy. And, finally, in the United States offers appear to be particularly expensive for light consumers, but become steadily more affordable for heavier users.

Broadband access
Market positioning and pricing
When it comes to fixed broadband access services, American telcos appear to market a greater selection of standalone access solutions that their European counterparts who are more focused on bundled offers, no doubt to some extent because of the difference in how the telephony and TV markets and market competition are structured on either side of the Atlantic.
In terms of pricing, the gradual shift to ultra-fast broadband is generally taking place without a marked increase in price over classic broadband offers. In some countries, and particularly France for most operators, prices are actually identical.

Sales and billing methods
For fixed broadband access offers, the various options are built chiefly around:
� point of purchase: in a shop or online;
� terms governing handset rental/purchasing and its amortisation, replacement, return, etc.;
� minimum contract lengths;
� how access is billed: according to access speed, depending on other services in the bundle, etc.;
� billing principles for voice calls: how call time is measured, peak/off-peak calling distinction, differentiation by call destination;
� how TV services are billed.
The report includes a comparison of all of the different options in the different schemes, drawing on examples from the database.

Broadband access pricing benchmark (analysis by consumption basket)
For broadband prices, it is German, French and British telcos that often offer the lowest prices, while prices in Spain and Italy are usually among the highest. Meanwhile, aside from broadband only offers running at up to 8 Mbps, American carriers systematically charge the most of any of the operators examined here.

______________________
Telecom pricing � broadband and mobile market benchmark (Market & Data, March 2010)
� The purpose of this report is, first, to offer details and a comparison of the main features of the pricing systems applied these services in terms of market positioning (breadth of range, access speed) � drawing on the rate plans offered by the leading operators (generally the top four in each category) in six countries: Germany, Spain, France, Italy, the UK and the United States, which corresponds to more than 500 offers for the 42 vendors analyzed.
� Second, we have performed a detailed analysis of the �technical� components of these pricing plans, in other words of all of the parameters used in the pricing schemes, from the terms of subscription to contract length, by way of all of the methods used to calculate time or volume, depending on the case.
� Five mobile services and three broadband access consumption baskets have been defined. For each basket, which have measured the lowest price offered by each operator then provided the results for each country with three benchmarks: the lowest point, which indicates the price charged by the operator with the cheapest offer, all operators combined; the high point, which indicates the price charged by the operator with the most expensive offer (but the least expensive one for the operator in question for the profile being examined) and, finally, an intermediate point that corresponds to the weighted average (based on market share) of the prices charged by the three or four operators selected for that country.
� Finally, we have established pricing tables according to the different baskets. Unlike other benchmarking exercises that are generally carried out on this topic, we have endeavoured to take the utmost account, especially for services that are billed based on time (chiefly mobile calling), of the breakdown of calls that include adjustment coefficients according to time credits and billing tiers, and to provide more detailed points of reference than just an average price or the lowest price for a given country.
� A database of prices, in the form of an Excel file, backs up our analyses and forms an integral part of this report.

N�506 - eBooks -

2010-03-23

A l�occasion du Salon du Livre de Paris 2010, l�IDATE, cabinet de conseil et d��tudes sp�cialis� dans les t�l�communications, l�Internet et les m�dias, pr�sentera les conclusions d�une �tude commandit�e par le Minist�re de la Culture et de la Communication sur les principaux march�s �trangers du livre num�rique, c�est � dire le Japon, les Etats-Unis et le Canada.

Le march� du livre num�rique japonais est le plus ancien et le plus d�velopp� au monde � l�heure actuelle. Il p�se 3% du march� total de l��dition en 2009 et se caract�rise par la lecture sur le t�l�phone mobile, principalement de mangas. Faute de contenus attractifs disponibles en version num�rique, les perspectives de croissance interne sont limit�es ; les �diteurs pr�f�rant valoriser leur catalogue sur les march�s �trangers.

Aux Etats-Unis, le march� du livre num�rique ne comptait en 2008 que pour 0.5% du march� total de l��dition mais les ventes d�ebook devraient conna�tre une croissance � trois chiffres en 2009. Le march� am�ricain est le plus concurrentiel de la plan�te tant au niveau des catalogues de titres disponibles que des terminaux d�di�s (e-readers) et non d�di�s (smartphones, tablettes, consoles de jeux). Redessin� par les luttes d�influence entre les �diteurs, Amazon, Google et Apple, le march� devrait rapidement devenir le plus important au monde en valeur.

Quant au Canada, le march� du livre num�rique est encore faible en valeur et reproduit les clivages linguistiques : l�offre anglophone est � la tra�ne des Etats-Unis tandis que l�offre francophone se structure autour d�un entrep�t num�rique unique comptant plus de 2.500 titres et accessible � tous les �diteurs et libraires.

L�intervention au Salon du Livre pr�sentera pour chaque pays les principales caract�ristiques du march� (forces en pr�sence, cha�ne de valeur), les modalit�s de r�partition de la valeur ainsi que les perspectives de croissance.

Au second trimestre 2010, l�IDATE publiera une �tude globale sur les march�s du livre num�rique majeurs en Am�rique du Nord, Europe et Asie. L��tude dressera l�inventaire des strat�gies, mod�les �conomiques, politiques tarifaires et co�ts induits des principaux acteurs du livre num�rique. L��tude s�accompagnera d�une base de donn�es des ventes d��uvres num�riques et des terminaux de lecture d�di�s (e-readers) pour la p�riode 2009-2013.

L�intervention des consultants de l�IDATE se d�roulera le lundi 29 mars 2010 � 12H00 salle Julien Gracq, situ�e sur le stand du Centre National du Livre. (Stand N86).

> Vous pouvez d�s � pr�sent prendre rendez-vous avec les consultants de l�IDATE pour un entretien individuel en contactant :

Vincent Bonneau, responsable de la Business Unit Internet

ou

Marc Leiba, consultant livre num�rique et presse en ligne

N�505 - Social Video -

2010-04-08

Not only have social networks emerged as new distribution and promotion channels for video content, but they also provide innovative social solutions for TV channels and online video sites. This makes them powerful, crucial partners for the entertainment industry at a time when the media and the Web are increasingly social.

Social networking and watching videos online are now everyday practices on the Web, just like search, e-mail and browsing. These activities have given rise to new Web titans that are increasingly interrelated.

Today we are seeing social networks and TV and video companies coming together to create innovative solutions for broadcast and online video content:

� Connected television sets are making social networking sites available directly on the small screen, in the form of widgets. Social TV, the ideal combination of TV programs and social networking, gives channels a way to capitalize on their program lineup and enhance the TV viewing experience.

� Data portability solutions developed by the leading social networking sites (Facebook Connect, MySpace Data Availability, Sign in with Twitter) make it possible for free online TV and video services such as a TV channel�s Web site, a VOD service or a community video platform, to integrate popular tools from those communities (Facebook�s Live Feed, Twitter tweets). This helps create and retain new audiences and/or additional traffic, thereby generating more ad revenue.

� More and more people are viewing and sharing video content on social networking sites. For the entire range of TV and video services, from traditional channels to YouTube to Hulu, social networks have the makings of a new social and viral channel for promoting and distributing content, allowing them expand their reach. But in order for these players to profit from the dissemination of their content across the social Web, they need to use an appropriate advertising strategy.

� Content recommendations are becoming increasingly important for pay-VOD players, which could boost the relevance�and as a result, the effectiveness�of their suggestions by using the social graph as a filter. Consumers would receive video recommendations from contacts in their social networks, since these people are especially reliable sources of information whose recommendations they trust. However, any use of the social graph must respect users� privacy and keep personal data confidential.

Social networks have a lot to gain economically by working with the TV and video industry. These alliances can not only help them boost advertising revenue but also provide them new sources of income as purveyors of community-based solutions.

What challenges and strategies will these converging players take on, and what will be the economic impact of Social Video in the coming years?

IDATE has published a report addressing these questions, presenting key figures for the social networking and online video markets and describing the major innovations spawned by the meeting of social networks and video. The challenges and strategies of the players on the field are detailed in case studies.

Project Leader
Sophie Girieud
s.girieud@idate.org

N�503 - World Mobile Equipment Market -

2010-02-15

The global equipment market represented a total 284 billion euros in 2009, and IDATE predicts an increase of 1.5% for 2010.

As expected, 2009 was a tough year for the telecom equipment market. With the first warning signs of a slowdown in summer 2008, equipment manufacturers were the hardest hit by the recession. The difficulties encountered by the telecom equipment market were due especially to telcos� reduced spending that was slashed even further as the economy tanked. Dipping more than expected, especially after years of growth, the market is expected to shrink by 2% in 2009.

The mobile phone market has been deeply affected by the global economic crisis that began in 2008. With strong pressure on sales, the mobile handset market has gone from double-digit growth in 2002 to negative growth (-4%) in 2009. In terms of volume, the number of handsets sold dropped by 6% in 2009, down to 1.12 billion units, on the heels of +6% growth in 2008, which was nevertheless below initial predictions. The overall downturn that is currently affecting the cellular market is expected to continue and constrict growth in 2010 (+2.5% YoY).

Operators have been selective in their spending on network infrastructure, confining their investments to IP-based and optical transmission equipment, to be able to satisfy their residential and business customers� ever-increasing bandwidth requirements. Mobile equipment sales have come under strong pressure, although vendors do see certain regions, especially the Middle East, Africa and Latin America, as future growth areas once 3G auctions have wrapped up. Mobile equipment in fact continues to dominate telecom industry spending around the globe.

The wireline infrastructure market was down again in 2009, and carriers� transition to NGA networks � and particularly to FTTx infrastructure � was not enough in the grim economic climate to offset the decline of DSL equipment sales (-15% decrease in DSL port shipments in 2009).

On the flipside, the current economy has stepped up demand for services, such as managed solutions, that provide increased efficiency. Carriers� cost-cutting measures have translated into weakened control over their networks which, in 2009, meant a real upswing in infrastructure outsourcing deals and a growing number of operators turning to infrastructure sharing.

Changes in the equipment market landscape

The gap between vendors' performance widened in 2009, a year that served chiefly to expose their struggles. Nortel was the first victim, and its bankruptcy reshuffled the landscape as the company auctioned off its business, piece by piece. Virtually all infrastructure suppliers have been affected by the downturn, and the market is now populated by five heavyweights, including Ericsson which has managed to strengthen its position by taking over some of Nortel�s assets and expanding its foothold in the North American market.

Meanwhile, some of the smaller manufacturers, such as Motorola, have really felt the squeeze � their lack of critical mass making it hard to withstand intensified price wars. Mega mergers have also resulted in underperforming revenue growth, with both Alcatel-Lucent and Nokia-Siemens posting negative revenue growth for two years running.

Chinese manufacturers continued to enjoy a healthy growth momentum, albeit at a lesser pace than in the five past years. Huawei, which had being boasting a 40% growth rate, is expected to report a 20% increase in income in 2009, which still puts it near the top of the ranks, alongside ZTE.

Nokia remained the top handset manufacturer, with a 36% market share in 2009. However, with sales in emerging markets slowing because of the downturn, pressure from the competition is increasing. The two major Korean, manufacturers Samsung and LG, consolidated their positions and moved into second and third spot in the global rankings � having increased their market share over 2008 through their commitment to high-end and innovative devices. Meanwhile, Motorola continued its struggled to overcome certain difficulties, while Chinese equipment manufacturer ZTE increased its market share, rising through the ranks to become the globe�s 6th largest handset maker.

N�502 - Inventory of FTTH in Europe & Middle East -

2010-02-24

In 2009, growth in terms of subscribers and Homes/Buildings passed has accelerated in Europe, with respectively 19% and 29% rate between June and December 2009. In EU36 (including Russia), there were nearly 3.5 million FTTH/B subscribers and more than 25 million Homes/Buildings Passed.

Because of its specific demographic characteristics, Russia is the heaviest country in terms of subscribers and Homes/Buildings Passed even if the FTTH/B market is still in its infancy in the country. The potential of the Russian market is huge and might convince new players to get involved in FTTH/B deployments in the near future.

In the Middle East (14 countries covered), UAE are the main FTTH/B market, totalling more than 1 million Homes/Buildings Passed and nearly 63,000 subscribers. In other countries, FTTH/B deployments are very limited, and even municipalities, which initiated most of the FTTH/B projects in Europe, do not seem to get highly involved in deployments.

_____
Even with new deployments in Eastern and Southern Europe, more mature countries still dominate the global European FTTH/B market. In countries such as Sweden, rollouts are still engaged even if on a smaller scale. The main issue now is really to convince end users to subscribe to services based on FTTH/B networks. At end 2009, 18 European countries are in the Global Ranking, which is the proof that commercial effort is on-going, but still has to be enhanced.

Regarding Middle East, the FTTH/B market is still in its infancy. Several announcements have been made but have to be concretised. Contrary to Northern Europe, where first deployments were engaged by municipalities and/or power companies, rollouts in Middle East will more probably be initiated by incumbents and private players, among which Real Estate Owners which will rapidly find a high interest in Fiber as value-added for their new housing programs.

European FTTH/B market at end 2009

As in previous years, IDATE has been commissioned by the FTTH Council Europe to provide an overview of the status of FTTH rollouts across Europe at the end of 2009. To date, IDATE has identified 249 FTTH/B projects in Europe, of which 136 are new initiatives since June 2005.

Municipalities and utilities are still the main category of players involved in FTTH/B deployments in Europe as they represent 55.7% of total number of projects. Nevertheless, they are still giving ground to alternative players which, even if they only represent 28.7% of total number of projects, reach 74% of FTTH/B Homes/Buildings Passed.

In terms of subscribers, alternative operators still dominate the market. Those which were involved first in FTTH/B deployments represent the most important customer base: all together, FastWeb (Italy), B2 (Sweden), Illiad/Free, Numericable & SFR (France), Orange Slovensko (Slovakia) and T2 (Slovenia) at the end of 2009 totalled 841,500 subscribers, or around 24% of Europe�s FTTH/B subscriber base (including Russia). However, this figure is lower than a year ago. This is mainly due to the involvement of incumbents which have been deploying largely in 2009 after months (and sometimes years) of expectation for regulation clarification.

� New FTTH/B markets, mainly in Eastern Europe, are very dynamic. Countries such as Lithuania, Estonia and Czech Republic are among the most dynamic in terms of new FTTH/B subscribers during second half 2009.

� Sweden, third country in terms of number of new subscribers between June and December 2009, is still a very dynamic market where local and national players continue to convince end users to subscribe to services based on FTTH/B architecture. On the other hand, the coverage is still increasing, and the consequence it a lower penetration rate in the country compared to end 2008.

� At end 2009, 4 countries have entered the Global Ranking, meaning that more than 1% of households have subscribed to a FTTH/B service: France, Czech Republic, Portugal and Bulgaria.

� The majority of subscribers (around 67% of FTTH/B subscribers at end 2009) is concentrated in 7 countries in Western and Northern Europe: Sweden, Italy, France, Norway, The Netherlands, Denmark and Germany

Excluding Russia, which leads the FTTH/B market in terms of subscribers and Homes/Buildings Passed due to its specific demography, France is still ahead of all other European countries at the end of 2009. But other countries have shown a strong growth and are now positioned among the 10 leaders in terms of number of Homes/Buildings Passed. This is the case for Portugal, Bulgaria and Lithuania which are respectively n� 4, 5 and 6 at end 2009.

Scandinavian countries, and notably Sweden and Norway, still lead the way in Europe in terms of penetration rate with 41.4% and 64.9%, respectively. However, those rates have slightly decreased between end 2008 and end 2009: this signifies that deployments are still engaged and that the coverage, even in those advanced countries, has not reached maturity yet.

Regarding technology deployed, Ethernet is still the first choice of players and represents 84% of total FTTH/B rollouts at end 2009.

The main change during 2009 concerns the architecture deployed as at end 2009, FTTB represents 58% of rollouts compared to 47% a year ago. This is further proof of the fact that players often opt for FTTB to avoid the issues involved in installing fibre on private properties, and especially MDUs (negotiation with landlords).

Middle East FTTH/B market at end 2009

As part of its inventory, IDATE also examined the status of FTTH in Middle East at the end of 2009. With the exception of UAE, there have been very few FTTH/B deployments in Middle East up until now. Some players have announced and/or have begun FTTH/B rollouts in major cities, but coverage and take-up levels are not yet significant.

The key driver for FTTH/B deployments in the region is massive new housing programs. Alternative operators are more involved in FTTH/B deployments than other categories of players, however, incumbents are dominating the market as they represent more than 60% of FTTH/B Homes/Buildings Passed at end 2009.

N�501 - DigiWorld Summit 2010 -

2010-02-01

For 31 years, the Digiworld Summit (IDATE International Conference) has served as a unique forum in Europe for assessing the consequences of changes taking place in the DigiWorld� (Telecom, Internet, Media).

Key Data on DigiWorld Summit 2009:
- More than 1300 attendees
- 200 speakers
- 80 exhibitors

www.digiworldsummit.com

N�501 - World Mobile Market -

2010-02-11

IDATE provides regular analyses of the central trends shaping mobile markets around the globe � networks, devices and services. To mark the Mobile World Congress in Barcelona (15-18 February 2010), IDATE is publishing the fourth edition of its special white paper: �Mobile 2010 � Markets & Trends�, which draws on several IDATE market reports.

After a marked decline in 2008 � to +3.8%, or two points less than in 2007 � growth in the telecom services market dropped significantly once again in 2009. After generating revenue of 1,417 billion USD in 2008, sales are expected to reach 1,441 billion USD in 2009, in other words an increase of only 1.7%: the lowest growth rate since 2002.

�This decline is due to structural phenomena, i.e. the maturity of the markets that have driven growth in the past, namely mobile telephony in industrialised countries, combined with competitive and regulatory pressures whose impact has been further aggravated by the economic downturn�, says Carole Manero, Project leader of the �World Telecom Services market� report.

Although based solidly on business models tied to subscriptions and technologies that users in industrialised nations consider essential, the telecom services market is not likely to emerge unscathed from the recession. It does nevertheless have some very strong assets that will help put it back on track, including the fact that consumption volumes continue to rise apace with the growing user base. In fixed markets, the growing Internet services market is no longer fully offsetting the decline in fixed line calling, added to which the growth rate for mobile services revenue continues to shrink � decreasing by two-thirds between 2007 and 2009.

Mobile services nevertheless remain the chief driving force

With total sales estimated at 755 billion USD in 2008 and at 785 billion USD in 2009, mobile services nevertheless remain the chief driving force behind growth as a whole. They have accounted for more than half of all telecom services revenue worldwide for four years running (representing an estimated 55% in 2009), and generate more than twice as much income as landline calling. The mobile market�s growth is being sustained by a massive rise in customer numbers which grew by 14% worldwide in 2009: up to 4.5 billion (or by more than 46 million customers a month!), whereas the market�s value has been declining year after year.

Fixed telephony continues its decline which began in 2002, and at an ever increasing pace. In 2009, the number of fixed lines shrank again, and average revenue per line has decreased by around 2% annually for the past two years. Fixed telephony has decreased in value by 11% in three years and, at the end of 2009, it accounted for only 26% of the telecom services market worldwide, compared to around 33% in 2006.

Generating an estimated 275 billion USD in 2009, data and especially Internet services continue to increase their weight in the equation, which has risen slowly but steadily: by 0.5 to 0.7 points annually since 2006. Their share of the total market reached 19% in 2009, up from 17% in 2006 and less than 15% in 2001, although their contribution to growth is no longer offsetting the decline in fixed telephony revenue: 19.3 billion USD in losses for fixed voice, compared to 14.1 billion USD in gains for fixed data services. Excluding Internet, the data services market remained unchanged in Europe and North America in 2008 compared to 2007, and is thought to have suffered a decline in 2009.

The growth of Internet and data services revenue has been spurred by the remarkable rise of the Internet, and especially of broadband access. In terms of volume, the number of broadband subscribers grew by close to 63.3 million, which translates into 5.3 million new subscribers a month worldwide. At this pace, we predict that the 500 million mark will be reached some time in 2010. At the end of 2009, broadband access accounted for three quarters of all Internet connections around the globe.

LTE: the right answer?

IDATE predicts that, by 2015, a total of 380 million subscribers in the US, the EU-5, Scandinavia, China, Japan and South Korea will have access to mobile data services over LTE networks.

� The cost of an LTE rollout for an MNO operating both GSM and UMTS/HSDPA networks amounts to 2.1 billion EUR to cover the urban and suburban population. This figure applies to a nation of 50 million inhabitants with the population density/distribution properties of a Western European country.

� Innovative services and business models, such as VoLTE which can bring benefits to both operators and subscribers, need to be deployed if operators are to maximise the potential of LTE deployments, maintain ARPU levels and continue to be a smart pipe.

N�500 - DigiWorld Programme 2010 -

2010-02-02

On January 28th, the companies that support the DigiWorld Programme will be meeting in Paris to decide on the mission statement for 2010. The purpose of the DigiWorld Programme is to provide an independent European forum for promoting discussions and analysis of the digital industry and economy, through a wide range of initiatives.

The DigiWorld Programme includes a varied and complementary series of activities and events: Club meetings, Policy Programme, publication of the DigiWorld Yearbook, the Communications & Strategies journal, international fact-finding missions, seminars, conferences...

We can already announce one addition to the programme: the launch of a monthly Club meeting in London

IDATE has taken the initiative to begin a Club in London that operates similarly to the one in Paris, i.e. a monthly meeting over breakfast of representatives of some the ICT sector�s most prominent players. As they are in Paris, London Club meetings are private (for members only). On the agenda for the first two meetings: the challenges posed by LTE, and Net neutrality.

> DigiWorld Programme presentation

N�499 - Digital Home -

2010-02-11

Connected devices will constitute a market of 149 billion EUR in 2013 in Europe, Japan & USA

ISPs are no longer the only service providers supplying access to the Internet. Mobile operators also provide connection to the Web thanks to third-generation access which is now widely available: in France, for instance, over 70% of the population is covered for 3G.

Although generally acquired when away from home, content is usually consumed in the convenience and comfort of the home.So bringing content into the digital home is no longer a problem, as connected devices meet consumers� needs and behaviour patterns. The problem that consumers do face is how to transfer the content between the devices that make up the digital home in a fast, easy and intuitive way. IDATE believes that no single view of the digital home will prevail monumentally over the others, and that each has its own advantages and drawbacks. The market share captured by each configuration will ultimately evolve according to the progress made by the solutions involved, and as consumers become more savvy. We have therefore distinguished the following stages of market development:

� market opens up via solutions that combine devices, service offerings and proprietary content (�silos� scenario)

� the parallel development of technical solutions that improve interoperability inside the home, either thanks to interoperable devices (�seamless� scenario) or through a central multimedia server (�home servers� scenario);

� the gradual rise of services and content integrated into the devices (�store� scenario);

� the eventual switch to online solutions ("Home-in-the-cloud" scenario).

Progress made in home networks
The biggest issue that currently faces the smooth circulation of content within the home is the amount of bandwidth available indoors. Thanks to ADSL and optical fibre access, bringing content into the home is no longer a problem. Connectivity between the devices is making strides thanks to three technologies that are now widely available: Wi-Fi, cables and powerline carrier systems, all of which continue to make progress.

� To overcome bandwidth problems, American firm Zeevee markets a solution based on the use of coaxial cables that make it possible to distribute content at high speeds to all rooms in the house that are equipped with these cables.

� Several consortia are promoting very high-speed wireless solutions, including Wi-Fi Direct, providing direct connection between devices, independent of the router; the WiGig Alliance, offering Wi-Fi connection in the 60 GHz band, and the WHDI (wireless high-definition video interface) alliance.

DNLA Connectivity
Moving content around within a complex environment made up of disparate devices, all of which have different purposes (storage, control, viewing, listening, etc.) remains a complicated affair. To remedy the outstanding issues, a number of consortia have been formed over the past few years, their purpose being to establish norms and standards for the communication process between devices to make them directly interoperable ("plug and connect"). A prime example is the DLNA, or Digital Living Network Association.

N�498 - World Television Market 2010 -

2010-01-25

"Industry did not escape the consequences of the global economic crisis; the crisis particularly affected television advertising revenue. Nevertheless, IDATE predicts that the market will exceed its 2008 level in 2010", comments Florence Le Borgne, project leader of this report.

� The United States remains the largest television market in the world with turnover of   more than 100 billion EUR in 2009, declining 2% in a year. The importance of the   North American region in the worldwide market is trending downward, going from 39% in   2006 to 38.7% in 2009; it should continue to lose a few tenths of percent in the   years to come.

� The second largest regional market, Europe had a turnover of 82 billion EUR in 2009,   a decrease of 2.4% compared to 2008. The importance of the European market in the   worldwide market also showed slow erosion, going from 31.7% in 2006 to 30.5% in 2009.   The United Kingdom, Germany and France attracted the most market growth and between   them account for 44% of the region�s revenues.

� Asia/Pacific recorded growth in its TV market on the order of 0.3%. Its market share   grew by 0.3 points and regained its 2007 level, at 20.8%. The heavyweights in the   region, Japan, India and China experienced varied results. As a mature market, Japan   showed a decrease of more than 5% while the Chinese and Indian emerging markets grew   6.2% and 9.5% respectively.

� Latin America displayed the greatest growth in its TV market, with an increase of   nearly 5%. Its market share in the worldwide market is still small (7.9%), but it is   growing consistently (6% in 2006). Brazil is the largest market in Latin American TV   and alone makes up more than 45% of the market.

� The smallest regional market, Africa/Middle East declined by more than 6%. Its market   share has stagnated at 2.1%.

The worldwide television market was, in 2009, primarily affected by the decline in advertising revenue of 9.2%, which could not be compensated for by paid television or public funding; these two sources of revenue increased 7.2% and 3.5% respectively. Up until 2008, advertising was by far the primary means of funding for the industry, generating about 50% of the sector's revenue, compared to 40% for paid television and 10% for public funding. In 2009, the weight of advertising and subscriptions each accounted for about 45% of the sector�s revenue. By 2010, revenue from paid television should exceed overall advertising revenue worldwide, reaching a ratio of approximately 47%/44% by 2013.

Florence LE BORGNE
Head of TV & Digital Content Business Unit at IDATE

N�497 - Happy New Year! -

2010-01-04

In 2010, Understanding the Digital World

N�496 - World Video Game Market -

2009-12-29

In the latest edition of its report �The World Video Game market�, it appears this market continues to report promising results, even in this bleak economy � and even enjoyed record-breaking video game and console sales at Christmastime in 2008. Hardware sales (home and handheld consoles) totalled 14.7 billion EUR in 2008, while software sales (PC, home and handheld console, mobile phone and online) totalled 36.6 billion EUR.

According to Laurent Michaud, head of the Digital Entertainment Practice, �the sector will continue to enjoy solid earnings, albeit with some nuances depending on the market segment. In 2010-2012, the hardware sector will experience a downturn in sales as households reach optimum equipment levels, with growth picking up again starting in 2013 thanks to the launch of new gen consoles. The increased revenue generated by software sales will not be enough to offset losses up to 2012�.

By late 2009, home console games could account for 30% of the sector�s revenue. It should nevertheless be pointed out that this segment is expected to have flat growth at best in 2009, due to a combination of reduced household budgets, a selection of games that has not lived up to gamers� expectations, and competition from other platforms. This percentage is expected to drop to 24% between now and 2013, notably due to the growth of online gaming which is expected to be generating more revenue than home console games in five years� time. More significant still, games on handheld devices, including phones and consoles, could become the largest segment, generating 15 billion EUR in revenue in 2013, on the eve of the launch of the next generation of home consoles.

Industry trends: a constant state of renewal
For the video game sector, 2008 and 2009 were marked by a resurgence in competition which is now livelier than ever. It extends to all platforms, all networks and all genres. But is that not a sign that this industry is in good shape?

The video game sector is attracting a host of newcomers and is regularly held up as an example, notably for its ability to adapt to the challenges of the digital era.
� It is the only digital entertainment sector to have successfully negotiated the switch to digital distribution and the digital revolution, even if a certain degree of resistance remains.
� Sales continue to rise steadily, despite the impact of certain cyclical effects, notably the drop in console sales in the latter part of their lifecycle.

The sector is being shaped by several events which will mark 2008-2009 as a turning point in its development.

1. Digital distribution is continues to make strides. It is making its way to all platforms and becoming increasingly popular with consumers. Everybody appears to have accepted digital distribution as inexorable, from developers to retailers, by way of game publishers � and it started with gamers themselves.

2. With the ecosystem it has structured around the iPhone and its app store, Apple is transforming portable platform games. The American firm has adopted a business model that challenges console makers� brick-and-mortar models.

3. Online gaming will be the most dynamic segment between now and 2013. It will continue to develop thanks to Internet-ready TV sets, to the growing array of gaming offers, the cohabitation of business models which is stimulating competition and to a number of aggressive pricing strategies, ranging from Free-To-Play to Premium subscription.

4. The sector is opening up to new forms of gaming, sometimes going beyond the game. Casual gaming � which requires no learning curve, offering short games in what is sometimes a very basic graphic environment � has the potential to open the doors to a mass market. Serious gaming, which involves taking gaming technologies to other sectors, will find applications in all sectors of the economy, starting with healthcare, defence, training, emergency services, tourism, etc.

5. Video games are at the heart of the communal and social Web, and will be one of the driving forces of the intelligent Web. The integration of data mining techniques into online gaming services will help create predictive models for games by building an individual, behaviour-based player profiles.

6. Video games will benefit from the technological developments made by networks. The deployment of optical fibre will give a boost to steaming games which require neither machine nor game, or even a gaming platform, only a device to interact with such as a TV.

N�495 - 3D Web -

2009-12-28

This report explores the technological and economic environment of the 3D Web, from the partial use of 3D to fully three-dimensional universes. It identifies the services that are key to enabling the migration to 3D: e-commerce, mapping, serious gaming� and offers a close-up look at virtual worlds, using original business models for buying virtual goods, and at augmented reality, the next central 3D application on mobile devices.

� The first 3D success stories on the Web, i.e. real-time 3D, have naturally been applications for which 3D offers a true added advantage through immersion and/or simulation.
3D is generally located at the dedicated software client or classic Web browser level. Among the major immersive services, video games have played a key role in pioneering 3D technologies that could then be applied to other segments. The massively multiplayer online game (MMOG) segment is the biggest user of very advanced 3D solutions such as World of Warcraft. Online gaming alone generates 7.7 billion EUR worldwide. Another major immersive 3D market is virtual worlds where users interact with one another: 23 million Internet users are actively involved in virtual worlds. 3D also boasts the assets to create simulations which applications like serious games, virtual tours and, to a lesser degree, e-commerce, have all adopted.

� The 3D Web, especially in the realm of virtual worlds and Free2Play games, is central to the Internet�s future development, not only because of the technological features it brings, but especially because of the business models being created for immersive services.
Unlike with other Web services, whether organic (event planning) or display, advertising is a secondary source of income, with the vast majority of revenue earned by online games still coming from pay-to-play subscriptions. Virtual worlds that resemble MMOG use the sale of virtual goods via micro-payment as their prime source of income � a market that is already worth over 2 billion USD. This business model has also caught on with the top social networking sites, whereas 3D simulation services, such as e-learning, are still using classic means of generating revenue (licences, product sales�).

� Although there are still some obstacles to overcome (tax system for virtual worlds, network and computer performance�), the main impediment to the 3D Web�s development remains the creation of content, which requires specific skills and still represents a colossal expenditure.
Although some services can re-use 3D content offline, as is the case with video games, most players need to develop the content entirely themselves and encourage their end users to create 3D content. Things become even more complicated when we move to mobile platforms. Aside from highly immersive ones, most 3D Web solutions will initially offer just a touch of 3D (object, avatar) on a Web page, or in augmented reality applications on mobile � which could be on its way to becoming the next mobile killer app.

Definition
The 3D Web includes all of the interactive 3D content incorporated into webpages. This means that it is viewed by the Web browser and not using independent software that needs to be downloaded (such as Google Earth). We will only be exploring real-time 3D, and not pre-calculated 3D representations that can be displayed without offering the ability to interact with them � and so largely akin to video. The concept of 3D is by no means a new one, the first forays having been made by the Web 3D consortium back in 1994. The 3D Web is naturally being promoted by the industries that use it, both online and off, and which are working to offer the same technologies on the Internet.
The main initiatives are therefore coming from the same industries that use 3D offline:
- for digital content creation (DCC), chiefly in video games and special effects;
- heavy industry and vendors that employ CAD for designing and simulating objects before building physical prototypes.

Segmentation
The concept associated with Web 3D can take a number of forms depending on:
- the degree of immersion: 3D can be used to create a complete representation of an entire environment (like in a virtual world), or involve only a few elements on a webpage (object, avatar, etc.);
- the degree of sophistication: some solutions use true 3D which can be very intricate (subdivided into a great many polygons) as well as 360� navigation, whereas others offer only 2.5D, i.e. isometric 3D.

N�494 - In-Game Advertising -

2009-11-13

Advertising spending has been cut for all media, except the Internet. According to Laurent Michaud, Project Leader for the In-Game Advertising report: �Video games continue to be underestimated by advertisers who are reticent about this unfamiliar sector, but we expect to see this trend of under-investment start to disappear by 2010-2011�.

In-game advertising, or IGA, is a fast-growing market that is expected to increase from 716 million euros globally in 2009 to 1.4 billion euros in 2013 � which means average annual growth of 18.5% during that period. This report, which provides a detailed view of how the market is structured and the strategies being employed by the players, sheds new light on the market�s promising outlook, its inherent challenges and the medium-term growth levers.

Several phenomena are coming together and helping to spur the market�s swift development:

� Advertising spending on video games is catching up. Long held in low regard by most advertisers since it targeted a small niche of consumers, video games are now spreading to the general public.

� The work performed by specialised ad agencies to persuade advertisers and marketing agencies will have an effect in the short term.

� Dynamic in-game advertising offers still largely untapped possibilities in tracking the impact of advertising, real-time profiling of target markets, refreshing ads in real time, etc.

� The viability of CPM measurement tools is crucial to the development of in-game advertising. Even if low-level software standardisation is not yet on the table, everyone agrees that the results of IAB initiatives are promising.

� The top video game publishers are aware that they can earn substantial revenue from in-game ads.

� Massively multiplayer online gaming and games on social networks are the most dynamic advertising segments for games. Despite how diverse this segment is, gamers seem to be less averse to ads than previous generations, provided that they mesh with gameplay as seamlessly as possible.

� Making digital entertainment devices Internet-ready is key to the success of in-game advertising. At the end of 2009, between 70% and 75% of home console owners � or more than 100 million households � are connecting their machine to the Web. IDATE estimates that this figure could increase to over 225 million by 2013.

� 2009 is the year that television entered the era of the Internet, of instant interactivity and graphically enhanced interfaces. The internet-ready TV will host on-demand video game services that will open up an additional advertising window on the small screen, which is an ideal platform for commercials.

N�493 - Next Gen TV -

2009-11-12

In its latest market report, IDATE delivers its analysis of the issues tied to the proliferation of innovations that allow viewers to watch TV programmes on the Web, based on a detailed benchmark of the offers being rolled out by players devoted to innovative TV solutions: offers, features, distribution, content, prices and consumption. An operational profile provides a synthesis of the key innovations in terms of content, services, software and devices.

Innovation in the area of TV services is part of a long-term trend of the convergence of classic television and the Internet, which is being shaped by the following developments:

� in terms of consumption:
- increase in time-shifted viewing and more personalised content consumption
- portability of the content
- consumption that combines broadcast, personal and Web content

� in terms of access:
- growing number of image distribution solutions and network ubiquity
- growing role of the device as the place where content is aggregated

� in terms of financing:
- fragmentation of ad revenue
- free offers that undermine financing for pay-TV programmes.

These developments are dismantling TV�s traditional value chain, and especially content distribution: the growing complexity of the technical distribution of content is stimulating the emergence of new intermediaries, providers of technical solutions (STBs, software). In some cases, these intermediaries play a central role in the commercial distribution process.

The conclusions reached by these comparisons allow us to obtain a precise analytical grid of innovation in the realm of TV services, which helps sketch out the future shape of television services:

N�492 - Radio Spectrum -

2009-11-09

At a time of explosive growth for mobile broadband and the progressive deployment of 4G networks starting next year, new frequency bands are being made available. Digital dividend spectrum was already awarded last year in the US, and is progressively being harmonised in Western Europe. In the meantime, the refarming of the 900 MHz band creates an opportunity for mobile broadband to be made available in rural areas.

This latest IDATE report focuses on three main topics: Digital Dividend, spectrum refarming and 4G Spectrum.

Digital Dividend
� The Digital Dividend represents a unique opportunity to facilitate the dissemination of mobile broadband in Western Europe. The 800 MHz band (790-862 MHz) freed up in Europe for mobile communications has a very high value for mobile operators. The takeoff of mobile broadband adds value to this new spectrum.
� Analogue TV switch-off has already happened in the US and is progressively taking place in Europe with a switch-off to be completed by the end of 2015.
� The status of the Digital Dividend in Western European countries is getting clearer as most European countries have already allocated, or shall do so soon, the 800 MHz band (790-862 MHz) to mobile services. The regulatory framework is getting clearer and the technical conditions have been established by the CEPT.
� Harmonisation throughout Europe is likely to be reached and this adds even more value to the 800 MHz band. Most mobile operators are planning to use LTE in FDD mode in this band.
� USA took the lead and auctioned the second part of its own digital dividend early in 2008. The 700 MHz auctions in the USA were a real success even though the D block was not allocated. The reserve price ($10 billion) was largely exceeded and the winning bids reached US$ 18.9 billion. This confirms the great interest which the UHF band has for those mobile operators who are going to deploy LTE.

Spectrum refarming
� The use of the 900 MHz band by 3G or 4G technologies represents a short-term opportunity to facilitate mobile broadband coverage of rural areas.
� Regulatory hurdles have been lifted in Europe as the GSM Directive was repealed in mid-2009.
� The potential benefits for operators are the possibility to provide extended coverage for 3G as well as reduced CAPEX and OPEX.
� Spectrum refarming can be considered as a trend in Western Europe and is coherent with the wish of NRAs to offer broadband access in rural areas but could be slowed down in many countries due to the distribution and fragmentation of the 900 MHz spectrum between the main players.
� The refarmed 900 MHz band will be mainly used by 3G technologies but some operators are considering using the 900 MHz band for LTE (in Sweden, for instance).
� 900 MHz refarming has already begun in Finland and is planned in many other countries.

4G spectrum
� The continuous and exponential growth of data traffic on mobile networks will increase the need for new spectrum.
� LTE is going to dominate the 4G field; our projections show that there will be more than 350 million LTE subscribers at the end of 2015. LTE commercial growth is expected to start in 2011 in the USA and in Japan and from 2012 on in Western Europe.
� LTE needs larger bandwidth (typically 10 and 20 MHz) to deliver all its benefits in terms of large data rate and spectrum efficiency.
� 4G mobile networks will use various combinations of frequency bands in the different regions of the world. In the USA, LTE is first going to be implemented in the 700 MHz band.
� We expect the 2.6 GHz and 800 MHz bands to be the most widely used in Western Europe for 4G deployments. The 900 MHz band will be subject to refarming and spectrum arrangements between operators.
� 2.6 GHz status in Europe: no harmonisation in terms of FDD/TDD distribution is expected. This could slow down the availability of terminals and increase their cost.
� In the long term, the 3.5 GHz band will become available for mobile applications and could be used in the cities to provide very high data rates. Technical compatibility between fixed and mobile networks and competition issues could prove to be a problem though.
� The S-Band was allocated in May 2009 by the European Commission to Inmarsat and Solaris. It could be used as a complement to terrestrial mobile networks but the regulatory conditions still have to be clarified.
� The 2.6 GHz and 800 MHz bands will be auctioned in the years to come in Western Europe. We expect prices for the 2.6 GHz spectrum to be in the � 0.02-� 0.5 per MHz per pop and for the 800 MHz spectrum in the � 0.1-� 1 per MHz per pop range.
� TDD spectrum is less attractive to operators than FDD spectrum as shown by its valuation in Sweden and by the lack of interest in Hong Kong.

N�491 - Hybrid Networks -

2009-11-10

In its latest report on Hybrid Networks, Maxime Baudry, Project Leader, says that �hybrid satellite/mobile networks are networks that enable the deployment of a range of services � the most promising being those tied to the mobile Internet and to mobile TV�. Actually the context appears quite positive:

� After the spectrum allocations in the United States a few years back, the EU awarded two pan-European licences in the S-band this year: one to operator Solaris Mobile, which is the fruit of a joint venture between Eutelsat and SES Global � two of the globe�s four major satellite operators � and one to Inmarsat, another industry heavyweight;

� Via the launch of hybrid services, satellite operators hope to capitalise on the telecommunications sector�s future growth markets, and to position themselves as a key complement to terrestrial network players, and even as competitors when possible.

Satellite operators preparing for the exponential growth of the mobile Internet�
Around the world, and especially in developed countries, the fact that users are replacing their existing handsets with smartphones, i.e. high end phones that enable access to multimedia mobile services, is helping to spur mobile Internet take-up. According to Cisco, a smartphone generates more IP traffic than 30 standard mobile phones, while a PC card generates more traffic than 450 standard cellular phones.

The emergence of flat rates, coupled with the expanded coverage of mobile networks and new mobile devices that deliver outstanding performance levels, does appear to point to a stunning degree of growth for the mobile Internet in the coming years.

Moreover, in some parts of the world where a robust terrestrial broadband infrastructure is lacking, notably Eastern Europe, appear to be banking on these new technologies to catch up, as revealed by the substantial development of 3G/3.5G via USB keys integrated into PCs.

�and mobile TV
In Europe, mobile TV was launched in Italy in 2006 just before the World Cup in Germany. In the same vein, Austria and Switzerland, which were the host countries for the European Football Championships in 2008, rolled out their offers just before the event began.

� In Italy, Switzerland and the Netherlands, mobile TV services have been launched at mobile telephony operators� initiative. The rate of coverage for the services therefore depends on the operator�s network, while the packages on offer and prices charge vary from operator to operator. Customers do have to pay for the services, which are generally composed of a basic offer that can be upgraded to a premium package that includes specialty channels, adult programming, sports (game highlights, weekly programmes, live matches) and on-demand content. Depending on the type of programme, pricing will be per-day, per-week or per month.

� In Austria, the regulator awarded a broadcast mobile television licence to French network operator TDF�s Hungarian subsidiary, Media Broadcast, which then established agreements with mobile operators Orange, A1 and 3, all of which also distribute an offer.

� In Finland and Hungary, DVB-H services were deployed by network operators Digita and Antenna Hungaria (both of which are TDF subsidiaries), which led to the launch of free-to-air services offering an only small selection of channels.

� Elsewhere in Europe, trials have been completed in different parts of the country on a system using the DVB-H standard, or are still underway.

The award of two pan-European licences will enable the development of these services in the near future
After issuing a call for submissions in 2008, in April of this year the European Commission announced that it had awarded two pan-European S-band (2 GHz) licences of 30 MHz each: 15 MHz Earth-to-space and 15 MHz space-to-Earth.

The companies tat were awarded a licence, Solaris Mobile (a joint venture between Eutelsat and SES Astra) and Inmarsat, must satisfy the following obligations:
� cover 60% of the EU with the first commercial rollouts;
� make services available to at least 50% of the EU-27 population;
� cover the entire European Union by 2015.

MSS-CGC/DVB-SH systems present significant advantages in terms of coverage and cost
Modelling terrestrial network rollouts reveals that satellite is an economical solution for ensuring complementary coverage for terrestrial mobile networks. It appears that mobile operators will have trouble deploying their high-speed infrastructure beyond the 90% of the population that is already covered.

Even if they pool their efforts, which is the most likely scenario, they will probably be unable to provide coverage
effectively to the remaining 3% to 5% of the population, which opens up a niche market for satellite technology.

N�490 - 3D Video -

2009-10-13

Currently attracting a great deal of attention, 3D video is a market that is emerging as a driving force behind innovation and growth for TV and film industry players. This report provides a complete inventory of the current state of the market � presenting technical solutions, trials that are underway and pioneer commercial developments. It also offers 3D rollout scenarios up to 2015.

Main conclusions
� Stereoscopy, the current 3D standard, is considered to be the first generation of native 3D video technology. Autostereoscopy, which makes it possible to do away with viewing glasses, is being touted as the next 3D format.

� The audiovisual industry�s technical chain will need to adapt to the arrival of 3D. The biggest question mark that remains is the picture format to use, given the absence of an industry standard. In addition, to be able to take advantage of 3D, consumers will need to equip themselves with a new compatible screen (TV/monitor).

� One positive element in this development wave is that the industry will likely benefit from the efforts devoted to the transition to HD, since 3D will reuse the HD infrastructure in post-production and in the distribution stage.

� The development of 3D cinema appears to be an irreversible trend, and the entire technical chain appears to be working to meet the challenges created by 3D, from the increase in the number of films being produced to the equipment of movie theatres. Plus a business model appears to be emerging, with higher box office revenue being generated by films in 3D.

� The future of 3D TV is less clear, content is scarce, business models non existent and one crucial part of the equation remains problematic, namely the number of households equipped with the 3D-compatible viewing devices. Deciding on a common standard as quickly as possible seems to be critical to moving forward, added to which 3D/HD synergies should be maximised to ensure the development of 3D.

� The video game market will benefit from its ability to switch easily to 3D, starting with PC games. It could then prove a critical lever for increasing household 3D equipment levels, which it turn will pave the way for the deployment of 3D TV services. But we have a chicken or the egg conundrum here, with uncertainties still amongst the console makers, Nintendo, Sony and Microsoft, over the launch of their next generation consoles without there being a 3D television market in place.

3D development scenarios
� Special events cinema market � Centred around the use of 3D in cinemas, this scenario enables the swift development of 3D content, with a technical chain that is already in place. But the 3D market remains confined to special events viewing and to a small audience.

� 3DTV - This scenario is centred around TV viewing, both linear (3D TV channels) and/or time-shifted (from Blu-ray to VoD). To achieve a mass market over time, the industry will need to absorb the different generations of 3D, i.e. stereo-, auto- and multi-scopic.

� Multi-platform 3D � This is the most positive scenario for the development of a 3D mass market by 2015. The market finds itself in a virtuous circle where the maximum exposure of 3D content spurs consumption, which is itself fuelled by the availability of a large and varied selection of 3D content on several types of media/platform.

N�489 - Mobile VoIP -

2009-10-16

�Mobile VoIP is often perceived as a threat to mobile network operators, eating into their voice revenues as well as reducing them to mere �dumb pipes�. It has also been perceived as �the next big thing� for a while now in the mobile market�, says Soichi Nakajima, project Leader of the report.

This latest report, published by IDATE, will look at the myths and realities of mobile VoIP, the potential and threats of managed VoIP, and draw mobile VoIP penetration forecasts.

Key Findings

� In most cases, over-the-top mobile VoIP pricing is only attractive for international calls.

� Skype dominates the independent �cheap calls� VoIP market. Other independent players bundle Skype together with their own differentiated value to survive in the market.

� Google is the latest big name to enter the mobile VoIP field, and has the potential to disrupt the market with its unified communications approach and huge brand power.

� Currently, tier 1 MNOs are exploring possible revenue models around VoIP, or are still investigating how to profitably offer it on a large scale with acceptable QoS; whereas challengers are deploying VoIP as a means of competitive differentiation.

� It is only a matter of time before operators start to offer managed mobile VoIP. This will first manifest itself in the form of partnerships, followed by purely operator solutions.

� The following are the key factors for mobile VoIP take-off: competitiveness of the mobile market; uptake of fixed VoIP; penetration of unlimited data plans for mobile handsets; compatible handset availability; and MNO partnerships with third-party applications.

� There is potential to turn managed VoIP into increased data revenue, outweighing the loss in voice revenue, by taking elements from the success seen in fixed VoIP.

IDATE Forecasts

IDATE defines a mobile VoIP user as a user who uses a VoIP application on a mobile handset over a wireless carrier network, at least once a month. Based on this definition, IDATE predicts that the UK will be the early adopters, while France will be slow to take off to start with but accelerate from 2013.

The percentages of mobile VoIP users over the total number of mobile subscribers could reach 13% for the analyzed countries. Finally, converting the above percentages into user numbers, IDATE forecasts for the end of 2014, 75 million mobile VoIP users in the US, UK, Germany and France.

N�488 - The rise of Connected Devices -

2009-10-06

Following the success of smartphones, dedicated to mobile internet browing and data exchange, a new category of connected devices has emerged, in which netbooks have been the most successful to date, and it has radically changed the dynamics of the mobile telecom market.

The report, published by IDATE, provides a thorough analysis of the Connected Devices market up to 2013 and its impact for players of the mobile value chain.

� Prospects for this market are bright. Based on our estimates of the Connected Device market for each category of devices (Netbooks, MIDs, Electronics readers), IDATE forecasts that the Connected Devices market will rise from a 1.5% of total handset volumes shipped in 2008 (~18 Million Units) to around 11.1% in 2013 with 166 Million Units shipped. Netbooks will account for the main part (62 million Units shipped in 2013).

� This prosperous market has attracted the interest of major players from IT and the Mobile sector, who are trying to propose hardware and software products at the convergence of the fixed and nomad worlds. A strategic battle is thus taking place between hardware providers, such as Intel and ARM, and software providers, like Windows as well as Google (Linux based solution) , to conquer these new nomad platforms.

� In this growing market, Mobile Operators provide an entry point to the mobile web and have to broaden their devices portfolio. The value proposition has been increasingly attractive for netbooks and their associated data plans. Whereas MID and electronic book traction has been limited for now, most operators worldwide are now proposing netbooks offers bundled with a data allowance. However, these offers are still largely experimental with uncertain profitability and sustainability due to the lack of any incremental service strategy: operators are still trying out different levels of upfront subsidisation/monthly plan level combinations and limiting the number of authorised subscriptions for each plan.

� New challenges and opportunities are emerging for operators. Providing connected devices could add complexity: based on the success of netbook sales bundled with data plans, hopes are put on the possible transformation of mobile operators business into a new distribution channel for consumer electronics devices, but this also means customer support and product handling. On the other hand, the development of Mobile Cloud Computing services could become an important opportunity for operators proposing software as a service for this new range of connected devices.

N�487 - SMEs Survey 2009 -

2009-10-05

Sur la base d'un �tat des lieux chiffr� des niveaux d'�quipements et des projets TIC des TPE/PME, cette enqu�te propose une analyse d�taill�e des usages et services innovants en entreprise. Cette 5�me �dition est ainsi l'occasion de faire un point pr�cis sur le niveau de diffusion de la VoIP/ToIP, de la convergence fixe-mobile, des acc�s distants, du SaaS ou encore des outils collaboratifs traditionnels et avanc�s...

Le champ des activit�s marchandes hors agriculture en France m�tropolitaine compte 2.9 millions d'entreprises priv�es de 0 � 250 salari�s et emploie pr�s de 13 millions d'actifs, soit respectivement 85% du tissu industriel et pr�s de 50% la masse salariale globale.

Les investissements TIC des PME dans la crise
Dans un contexte de crise g�n�ralis�, une TPE/PME sur deux d�clare ne rien envisager de changer � ses projets IT � court terme. Pour les autres, deux profils de r�action se d�gagent :
� un premier profil plus � attentiste �, dont le mot d'ordre est "report et rationalisation"
� et un second profil � �conome �, davantage ax� sur l'anticipation des projets susceptibles de g�n�rer des �conomies imm�diates : ren�gociation des contrats, et mise ne place d'outils IT susceptible de r�duire les co�ts de transports notamment.

La diffusion des usages innovants s�acc�l�re
L'int�gration des TIC n'est pas homog�ne sur cette cible de march�, particuli�rement entre TPE -0 � 9 salari�s- et plus grosses PME. Ainsi, les premi�res, dont la taille des parcs d'�quipement est r�duite, ont une approche des TIC essentiellement "fonctionnelle" (i.e. motiv�e par les services) quand les secondes, doivent �galement int�grer une approche infrastructure, plus fortement contrainte par les cycles de renouvellement d'�quipement r�seau, n�cessitant de lourds investissements initiaux.

Au-del� du clivage central de la taille, certains secteurs d'activit� s'illustrent �galement par des comportements primo-adoptants vis-�-vis des solutions innovantes : c'est notamment le cas des Assurances, Organismes financiers, SSII et Bureaux d'�tudes.

VoIP
En mati�re de VoIP/ToIP, les tendances se confirment au cours de l'ann�e �coul�e sans bouleversement fondamental. Ainsi, la migration de tout ou partie du r�seau t�l�com traditionnel vers l'IP est aujourd'hui effective chez pr�s d'une PME connect�e sur 2. Apr�s une phase de forte croissance port�e par le succ�s des Box ADSL particuli�rement chez les TPE, le relai de croissance se d�place actuellement vers le haut du march� PME et les solutions full IP, de type Centrex ou IPBX. La diffusion de ce type de solution reste n�anmoins fortement conditionn�e par le cycle de renouvellement des autocoms, lequel se poursuit sur un rythme tendanciel en d�pit des nouvelles offres commerciales du march�.

Mobilit�
Les PC portables continuent d'investir le march� des TPE/PME � la faveur � la fois de primo-�quipement et d'accroissement du parc en place. Le parc de laptops d�ploy� b�n�ficie aujourd'hui d'une forte connectivit� mobile en Wifi mais de plus en plus �galement via cl�s USB 3G/3G+. Les attentes des TPE/PME vis-�-vis de la data mobile se traduisent aussi au niveau de leur flotte mobile, avec pr�s de 15% de mobiles b�n�ficiant effectivement d'un acc�s distant � Internet et/ou au syst�me d'information de l'entreprise.

Convergence Fixe Mobile
Si la diffusion de l'IP en environnement professionnel est une tendance in�luctable, elle reste encore contrainte par les cycles de renouvellement des �quipements (aujourd'hui seulement 1 t�l�phonique fixe sur 4 est un poste IP et les PABX traditionnels restent majoritaires) et par la n�cessit� de s'approprier les nouvelles fonctionnalit�s qu'elle permet : toutes les PME/TPE, et particuli�rement les plus petites, ne sont pas encore matures pour les communications unifi�es et la convergence fixe mobile.

Les outils collaboratifs
Au del� de la t�l�phonie sur IP les fonctions plus avanc�es sont encore mal appr�hend�es par une majorit� de TPE/PME. N�anmoins, le haut du march� marque les tendances de demain : avec notamment une app�tence soutenue pour les de solutions de Groupware et de messagerie unifi�e (respectivement 40% et 34% d'entreprises utilisatrices chez les 10 � 250 salari�s). La Messagerie Instantan�e plus en retrait au global, a cependant trouv� un march� chez les plus petites TPE. Les employ�s des TPE/PME ont encore une approche traditionnelle des outils de collaboration et font tr�s massivement confiance au t�l�phone, mails et r�unions en face � face dans leur �change entre partenaires. Le Web 2.0 est tr�s encore peu utilis� avec 5% des TPE/PME familiaris�es � l'usage des blogs, wiki, r�seaux sociaux en environnement professionnel.

Les applicatifs off et online
L'environnement applicatif des PME/TPE ax� sur le mail et les logiciels de bureautique, offre �galement une place centrale aux logiciels m�tiers ainsi qu'� la sauvegarde/s�curit� (plus de 50% de TPE/PME �quip�es pour ces deux applicatifs). L'achat de licence reste le mode d'acquisition dominant sur un march� ou les services en mode h�berg� se heurtent �galement au d�veloppement de l'Open source. Aujourd'hui, hors messagerie Internet, seules 10% des TPE/PME ont souscrit un service en mode Saas. En outre, lorsque ce type de solution est adopt� il est rarement g�n�ralis� � l'ensemble des applicatifs ; ce sch�ma ouvre la voix � des formules modulaires par brique applicative, plut�t qu'a des formules globalis�es.

N�486 - FMC -

2009-09-23

This report examines the current status of fixed-mobile convergence services in the business market through an analysis of the solutions being marketed by the leading carriers in five Western European countries: France, Germany, Spain, Italy and the UK. Drawing on a survey performed in France in 2008, the report provides a number of indicators on the enterprise fixed-mobile convergence and VoIP markets, along with estimates of the fixed-mobile convergence market for businesses.

IDATE estimates that by 2013, the fixed-mobile convergence market � which is one of the mobile services sector�s building blocks � could be generating 900 million EUR in revenue in the five countries listed, accounting for 4% of mobile services revenue. This trend would help operators turn the tide on the trend of shrinking ARPU of past several years which has occurred as a result of price wars.

A rather large and disparate offering

An examination of the catalogue of offers marketed by Western Europe�s top five operators reveals a broad diversity of fixed-mobile convergence (FMC) solutions. They may differ either because an operator employs a different strategy in each country where it does business, or because operators position themselves differently in national markets for specific strategic, technical or economic reasons.

Operators may incorporate one or several types of fixed-mobile convergence solution in their line-up:
� price convergence: the same rate plan for fixed and mobile calling;
� convergence of services: the same line of services available regardless of whether the call originates on a fixed or mobile phone, with optimised calling costs;
� handset convergence: a dual-mode handset with advanced features for fixed and mobile calls.

For operators, fixed-mobile convergence solutions constitute a tool that helps them to:
� keep customers by taking charge of all of their fixed and mobile access needs, along with voice and data services in the case of integrated operators;
� boost their capacity to win back customers who have switched over to the competition;
� diminish the erosion of average revenue per user (ARPU) for fixed and mobile calling;
� for big projects aimed at large SMEs or large corporations, the ability to offer integration, operation and maintenance solutions to enhance overall ARPU per customer: this is particularly true for integrated operators that market a wide array of services associated with their core business of telecom solutions provider.

Market forecasts

Revenue generated by fixed-mobile convergence services in the five largest Western European markets could reach 900 million EUR in 2013.

These offerings would enable operators to turn the tide to some degree on the trend of shrinking ARPU of the past several years.

The biggest obstacle for the enterprise fixed-mobile convergence market is nevertheless the added costs involved, in terms of both investments in equipment and higher operating costs, which for businesses could outweigh the benefits to users. In these times of crisis, cost-cutting measures are proving an impediment to the adoption of this type of service.

Although a company may see a real advantage in using a single vendor for all their telecom services (single invoice, single point of contact for all voice and even data solutions, single customer support centre, etc.), it nevertheless remains that negotiations for renewing solutions will be harder. This is even truer for large accounts where there is often a desire to have several suppliers for the different telecom solutions used in the workplace. The single vendor argument could thus also prove an impediment to the adoption of fixed-mobile convergence solutions.

N�485 - eHealth -

2009-09-23

�The major question on eHealth is a matter of �when�, not �if��, says Steven Andlauer, �assuming that state-of-the-art implementations can drive operational and financial efficiency�.

Key findings
________
� The market is still in its infancy and will take two more years to attain serious growth. Issues of regulation, language, investment and training need to be resolved first.
� IT systems in hospitals and for physicians will most probably be the first to grow, quickly followed by home monitoring solutions.
� Healthcare systems differ greatly from country to country, with a multitude of stakeholders in each: insurances, physicians, nurses, the pharmaceutical sector, regulator, schools of medicine and more. Only country-by-country strategies will work.
� Consolidation of the market is likely; the eHealth market is scattered at present, with a few, leading Health IT firms (mainly US-based) and many SMEs.
� The telecom industry, and in particular network operators, have potential business cases in the eHealth market. For these, key assets are secure connectivity and sales channels.
__________

IDATE has segmented eHealth into three relevant markets, whilst acknowledging that some large companies are active in more than one of these segments:
� Healthcare IT systems
� Home Healthcare
� Transactional services, supporting the two previous segments.

Of those operating in these three segments, IDATE has identified the following five main types of players:
� Health solution developers
� Medical-grade hardware vendors
� Telecom operators
� IT giants
� Web giants.

This market has two characteristics typical of an early market with intense competition: it is very fragmented, and no player has yet reached a global scale on its own. In consequence, companies rely heavily on partnerships to deliver globally across the value chain: whilst some of the Health IT heavyweights offer a large set of solutions all packaged by themselves (including datacentres, outsourcing and patient portals) in most cases partnership deals are struck so that specialists in each fields handle part of the solution.

This fragmentation is likely the result of the complexity of the eHealth market mentioned above: learning how to address a market, developing ad hoc products, can be a matter of years and is not totally replicable to another geography and/or product. Moreover, with medicine being an art in constant evolution, its tools change, its cures evolve and systems must be adapted accordingly. This leaves little headroom for specialised players to focus on other matters than simply keeping their products up to date. Large generalist IT players, on the contrary, are well-positioned to bring this industry to the next level, focusing on integration and maintenance rather than on product development.

The perspective of telecom operators

From the perspective of the telecom industry, eHealth can be considered a growth driver, either by providing direct services to hospitals and patients including portals, devices and eHealth 3G data plans or through indirect services to eHealth solution vendors such as connectivity and authentication APIs and billing. Practically, the prime elements that telecoms can bring to this industry include sensors and communicating modules integrated within mobile handsets, ad hoc secured connectivity services and end-user training capacity.

However, there are also factors which may hinder telecoms entry in this market:
� Reluctance of end-users, including physicians, to embrace new technologies
� Medical data security hurdles: ethical and legal requirements
� Potential health hazards from wireless communication technology
� Management of a number of partnerships for products and/or specific areas.

Market potential: The addressable market for operators

The market of connected healthcare is still at a very early stage. However, caution is called for with regard to how fast it will evolve, due to the intrinsic barriers in the healthcare industry, which is thoroughly regulated and generally operates under difficult financial conditions.

The addressable market for operators is by no means limited to just the transactional connectivity segment. The addressable market for telecom operators will include some overlap between the home healthcare segment and the transactional segments, and Health IT systems (considered separatly in this report), for operators with Business Services operations :

� Telemedicine solutions - These solutions encompass remote patient condition management for patients with chronic conditions. These platforms are provided through such links as home television and broadband connections directly in the patient�s home.

� Health portal information - Online health portals, such as the Revolution Health portal, were created as a sort of �wellness portal� where users can assess their health risks, set personal goals for physical health and trade information on local physicians. These sites can be viewed as a combination of medical information and social networking sites.

� Personal Medical Devices - Devices integrating sensors able to detect, process and transmit physical parameters are introducing new services and usages. Few devices are available for now, but this segment constitutes a major opportunity in the healthcare market for ICT players.

� Electronic Health Records - Depending on existing policy coordination for EHR, operators might be able to capture a share of the EHR market.

N�484 - Mobile Network Outsourcing & Sharing -

2009-09-22

Today, network sharing and outsourcing are not confined to challengers in the mobile market anymore but have become widely adopted among all kinds of mobile operators. This report presents different flavours of outsourcing and sharing and what drives mobile operators to do so. The analysis also sheds light on the long term impact on the industry, including equipment vendors.

Network sharing and outsourcing have gathered significant momentum in recent years and became mainstream even for tier 1 operators in major markets. Today, network sharing and outsourcing are not confined to challengers in the mobile market anymore but have become widely adopted among all kinds of mobile operators. The question is, whether this trend will be a temporary hype, as the spin-off of incumbents' mobile operations in the early 2000s or whether the increasing popularity of infrastructure sharing and outsourcing marks the dusk of the era of integrated network operators/service providers. In the latter case, today's MNOs will ultimately evolve into ServCos, something very similar to full MVNOs; having full customer ownership and a marketing focus but no radio access network of their own. The increasing momentum of the trend towards sharing and outsourcing seems to indicate that MNOs have indeed embarked on an evolution towards an infrastructure-light business model. A number of factors will continue to push MNOs into this direction.

Network outsourcing and sharing at the core of MNO strategies

Network outsourcing and network sharing has been observed for several years already. Following the UMTS licence frenzy, infrastructure sharing became an economic necessity for a number of operators to meet 3G coverage license requirements.. For instance, the most important reference for network sharing in the EU is the deal struck between T-Mobile and O2 to share infrastructures in Germany and the UK, the countries with the most expensive licences in Europe by far. Mobile network outsourcing first appeared towards the year 2004. Mobile challengers were the first players to adopt the model while multinationals were still reluctant to opt for outsourcing. Over the last 2 to 3 years, however, a real boom in the number of infrastructure outsourcing and sharing deals can be observed worldwide. Challengers as well as tier 1 players have multiplied deals in their different worldwide markets and have broadened the scope of the agreements.

Different Flavours of network outsourcing and sharing

"Network sharing" is not necessarily the same thing as "network sharing"; there is a variety of network sharing options and scenarios. The same holds for network outsourcing, where MNOs can opt for different degrees of outsourcing their networks.

� Network outsourcing: The "lightest" form of outsourcing concerns maintenance. Although the MNO keeps full responsibility for running the network operations centre, field maintenance is delegated to the service provider. Such deals may include spare parts management. In the case of network operations and maintenance outsourcing the service provider is in charge of running the infrastructure. The MNO keeps control of network planning and build out. In a full network outsourcing setting all network related tasks are delegated to the service provider.

� Network sharing: The main distinction to be made is between passive and active infrastructure sharing. Passive infrastructure sharing refers to the case where MNOs share assets like sites, power supply or masts but no active elements of the network. If MNOs agree on active network sharing, the deal includes elements such as antennas, Node-B, backhaul capacity or even core network elements. So far, the majority of sharing agreements concerns passive infrastructure only. One important aspect is whether network sharing takes place in a brownfield or greenfield setting. Efficiency gains from sharing will be significantly higher in the latter case, where the infrastructure can be designed from the outset to meet multiple MNOs' demand instead of adjusting existing networks.

Equipment vendors' positioning

Infrastructure services have been the fastest growing segment of telecommunications markets. Network outsourcing is one of the most dynamic elements of these infrastructure services. Competition among vendors is intense as the market is of strategic importance to them. Securing deals with MNOs in an early stage of the market will open the door for further contracts across their international footprints. Multiplying the number of deals also not only allows the vendor to gain expertise but also to generate economies of scale and scope. At the same time, the number of potential clients is shrinking as more and more MNOs share their networks. Providing the additional value of network outsourcing services may therefore be vital to a vendor's long-term viability.

Market size

� Mobile network outsourcing market size: the market generated by this activity reached 3.1 billion EUR in 2008 that represented 8% of the total addressable market estimated to reach 13% by 2012.

� Mobile network sharing market size: the estimated potential savings for passive sharing and active sharing were 39 billion EUR and 49 billion respectively in 2008.

N�483 - Pay TV -

2009-09-22

Despite the crisis that is currently sweeping the entire television industry, the pay-TV segment is enjoying a relatively stable position.

Television�s global sales figures are expected to fall 1.3% between 2008 and 2009, whereas revenue generated by pay-TV services is expected to grow 4.7% over the period.

� With sales of 110 billion EUR in 2008, the pay-TV market accounted for 41.7% of the total TV industry worldwide. Pay TV is present in 540 million households around the world, putting it on an almost equal footing with free-to-air TV (public or commercial): 48% of TV households pay to watch enhanced TV).

� The sector is even seeing sustained growth (though the level varies with each geographic region) both in terms of subscribers (+4% from 2008 to 2009) and revenue (+4.7% over the same period).

� With 23% of TV households and 25% of pay-TV households, Europe is the second largest market behind Asia-Pacific and ahead of North America. Europe is also the second in value at 83 billion EUR (30 billion EUR comes from pay TV), behind North America and ahead of Asia-Pacific.

The further digitization of cable networks, the launch of pay-TV offerings on digital terrestrial networks that are still in the deployment stage, and the wide variety of TVover- IP offerings largely explain the good health of the pay market.

However, competition from the Internet�which opens up access to a broad array of professional and amateur content�and rapidly-changing consumption patterns such as mobile or time-shifted viewing pose a real threat to traditional players in the pay-TV segment.

These television broadcasters, commercial and/or technical operators are now competing in a race to differentiate their offerings and to create a new value proposition. The goal is to make their services more attractive in an effort to curb the loss of subscribers that some are already facing.

N�482 - The World Television Market -

2009-09-22

The global advertising market was obviously not spared from the worldwide economic crisis that started during the summer of 2008. That year, the market was still growing but appeared to be running out of steam, with only a 0.5% increase compared to 2007. Though television and Internet recorded a slowdown in their growth on a worldwide basis, radio and the press were already showing a drop of -4.3% and -5.1% respectively.

Note that press and radio advertising revenues were already experiencing weak growth even before the crisis. Actually, listening to terrestrial radio had reached saturation while the press looked on, powerless to stem the migration of its reader � and in parallel of advertising and classified ads � to the Internet, which poses a great danger to the survival of its paper-based business. Actually, the press has been unable to monetize their online content at rates comparable to its paper-based content; they generate at least 10 times, if not 20 times, less revenue online than that for paper...

On the other hand, 2009 has been a downturn year for the ad market probably on the order of -7.2% compared to 2008. Except for the Internet, all media have experienced a contraction in advertising revenue ranging from -7.5% for television to -11.4 for radio and - 11.6% for the press. However, the Web, which before 2007 captured less revenue on a worldwide basis than radio, is growing (on a worldwide basis) at a rate of 11.4% or more than 5% less than in 2008. The Internet continues to grow in a bleak economic climate, but only by 11.4% � 5 points below the rate of growth in 2008. Although the Web attracted fewer investments than radio up to 2007, it has now definitively taken hold as the number three mass medium, behind TV and print.

The generalised contraction of the ad market should not continue in 2010. IDATE predicts stabilisation of the market and anticipates a global growth of 3.2% for 2010. The market should then experience some rebound in the following years and will reach growth rates greater than 4% in 2011 and 2012. Nevertheless, the global ad market will not return to its 2008 level (in revenue) before 2012. Actually, television, radio, the press and Internet attracted 308.4 billion EUR in 2008 compared to the expected 307.7 billion EUR at the end of 2011. By the end of 2012, the global market should exceed its 2008 level of revenue at 321.9 billion EUR. This figure nevertheless masks huge disparities between the different media.

Though the overall ad market should grow an average of nearly 4% per year between 2010 and 2012, the various media are showing disparate growth rates. The global market should be essentially pulled along by the Internet�s momentum, with a CAGR 2010-2012 of 15.5%. The steady advertising revenue in TV, with a CAGR of 3% over the same period, should also contribute to the recovery of the ad market. Smaller in value, the radio market should record a CAGR of 1.9% between 2010 and 2012 while press advertising revenue should stagnate in 2010 before experiencing a sort of catch-up effect resulting in a slight growth of 1% in 2011 and 2012.

N�481 - LTE: Roadmap and Forecasts -

2009-09-21

According to its latest report dedicated to Mobile Broadband, IDATE predicts that, by 2015, a total of 380 million subscribers in the USA, EU5, Scandinavia, China, Japan and South Korea will have access to mobile data through LTE networks.

With virtually all big-name operators, handset manufacturers and network vendors on board, the LTE ecosystem is healthy in the extreme - The LTE/SAE Trial Initiative (LSTI) and the Next Generation Mobile Networks (NGMN) Alliance both demonstrate a strong commitment to LTE. The former includes 23 equipment vendors and nine operators, and the latter includes 19 operators and 33 equipment vendors.

Earliest LTE deployments announced for end-2010; many more operators are set to follow - The forerunners of LTE deployment are NTT DOCOMO of Japan and Verizon Wireless of the USA. A host of other big-name MNOs is committed to deploying the technology from 2011 onwards.

Handset vendors still poised to deploy LTE, despite the financial crisis, first through laptops, then high-end phones and on to the mass market - All major handset vendors gave recorded negative YoY shipments due to the financial downturn. This will not stop LTE devices, however, and the first terminals will be aimed for use with laptops, gradually moving on to high-end phones and then to the mass market.

With advent of LTE, many MNOs could become enthusiastic about VoIP and adopt managed-VoLTE - LTE does not support circuit-switched (CS) services, but current mobile networks primarily uses CS for voice services. LTE can utilise VoIP together with an IMS (IP Multimedia Subsystem) network to deliver delay-sensitive, real-time voice services. Presently, operators see VoIP as a threat to their 3G networks, but VoLTE brings benefits to both operators and users. Initial LTE deployment is likely to see CS fallback for voice services, but in the long run managed-VoLTE could be a real possibility.

By adopting LTE, operators can hope to maintain current ARPU levels and stay being a smart pipe - LTE will certainly enhance the mobile experience, but monetising it will be difficult. Consumers are accustomed to free services from the world of Internet, and many LTE services will duplicate them. The realistic aim for operators would be to maintain current ARPU levels by offering premium services, and to keep being a smart pipe by staying at the core of the ecosystem by means of controlling the network and specific activities on top of it.

LTE will likely accelerate FMC, network sharing and strategic partnerships, especially in current financial climate - One potential downfall of LTE is its coverage, especially in its early days. Together with the expanding cellular backhaul traffic, LTE is a driver for adopting Fixed-Mobile Convergence (FMC). Network sharing and partnerships can already be seen throughout the LTE ecosystem, for a variety of reasons; for greater buying power, stronger influence over standards or to gain a foothold in a new market, to name but a few. In the current financial climate, cost-saving is also a key driver.

The cost of LTE deployment for an MNO operating both GSM and UMTS/HSDPA networks amounts to 2.1 billion EUR for coverage of the urban and suburban population. This is the figure to be considered for a territory of 50 million inhabitants with the population density characteristics of a Western European country.

Innovative services and business models, such as VoLTE which can bring benefits to both operators and subscribers, need to be deployed if operators are to maximise the potential of LTE deployment, maintain ARPU levels and continue to be a smart pipe.

N�480 - The World Telecom Services Market -

2009-09-21

The recovery could come from emerging countries such as China which, in addition to its strong potential for economic growth, is already showing positive signs of increased stability overall, thanks to massive stimulus measures. At the end of June, the OECD thus revised its GDP growth forecasts for several emerging countries from March of the previous year. In China, GDP growth is expected to total +7.7% in 2009 and +9.3% in 2010 (up from +6.3% and +8.5%, respectively, in March 2008). OECD forecasts for Brazil indicate a 0.8% decline in economic growth in 2009, followed by a 4% increase in 2010 (March �08 forecasts: 0.3% and +3.8%). In Russia, the OECD predicts that economic growth will decrease by 6.8% in 2009 before an upswing to 3.7% growth in 2010 (March �08 forecasts: +4.3% and +5.8%). OECD forecasts for India, meanwhile, include a drop to +5.9% growth in 2009, rising in 2010 to +7.2% (March �08 forecasts: +4.3% and +5.8%).

In Europe, there could be a slight recovery in 2010, albeit fraught with setbacks. There are no signs as yet of a clear recovery in the Eurozone, according to the latest OECD outlook from June 2009, even if the forecast figures are up and the situation appears less bleak. GDP is forecast to decrease by 4.8% in Europe in 2009, followed by zero growth in 2010. The forecasts from March 2008 were for a 4.1% decrease in 2009 and 0.3% growth in 2010.

Economic growth in the United States is expected to decline by 2.8% in 2009, and not by 4% as forecast in March of last year. The growth forecast for 2010 is now 0.9%, instead of the previous 0%.

Global recession more drastic than initially thought

In terms of value, annual growth for telecom services worldwide totalled 3.7% in 2008, or just under the 4% forecast in our last publication in January 2009. After the recovery which had been ongoing since 2005, 2008 marked a clear drop in telecom services market growth. With revenue totalling 1,404 billion USD, annual growth is estimated at 3.7%: the lowest for the global market since 2002, in other words just after the Internet bubble burst. Growth in 2009 and 2010 is likely to mark the nadir of the past ten years, staying below 4%.

If we continue to believe that the recession, which has worsened since autumn 2008 and whose impact we have reconsidered, is an aggravating but passing factor, this decreased growth is above all the result of more structural pressures weighing on the world telecommunications market, namely the fact that certain markets which have long been driving forces have reached maturity (notably mobile markets in economically advanced countries), the effects of the substitution and/or demonetisation of applications, competitive and/or regulatory pressures, etc.

On the whole, a review of our earlier forecasts reveals the extent to which we concentrated, in some cases too heavily, the effects of the recession in the last part of 2008 and the early months of 2009. Now in mid-2009, we believe that the crisis will be more lasting and have an impact on the results for the entire year.

Trends by Market

In fixed markets, the ongoing development of the Internet and broadband is only just offsetting the inexorable decline of landline telephony, while growth in the mobile services market dropped by four points in 2008 compared to 2007.

With a total turnover estimated at 709.2 billion USD in 2007 and 763 billion USD 2008, mobile services continue to account for all the growth in the telecom services market. Their weight in the total equation continues to rise: since 2006 mobile services have accounted for more than half of telecom services consolidated turnover worldwide � a proportion estimated at 54% in 2008, and which could reach close to 57% by 2012. The mobile market�s growth is sustained chiefly by the expansion of the subscriber base, which increased by another 19% in 2008. At the same time, average revenue per user (ARPU) has been dropping steadily.

Fixed telephony continues its decline which began in 2002, and at an ever increasing pace. In 2008, the market lost another 6% of its total value worldwide, due to the combination of a decrease in the number of fixed lines and a marked drop in average revenue per line. The data and Internet access services markets are playing an increasingly large part in the telecom services market�s growth worldwide. In 2008, they generated over 19 billion USD more in revenue than the year before, for a total turnover of 264 billion USD. Their weight in the equation is increasing steadily, going from 15% of telecom services revenue in 2001 to close to 19% in 2008, but their contribution to overall growth is only just offsetting the losses being reported in fixed telephony services revenue.

We initially forecast a sharper decline for the market for data transmission services in the business segment � and have revised our forecasts slightly for Western Europe and North America. It is the Internet market, and especially broadband, that is enjoying the only remarkable growth trajectory. Broadband subscriber numbers have been revised, however: down to 401 million at the end of 2008, instead of the 415 million estimated in our previous publication � proof of the decreasing rate of growth of the broadband customer base.

N�479 - The World Telecom Equipment Market -

2009-09-17

The worldwide investment spending by telecom operators (except cable operators) continued to increase in 2008 by +9.4%, reaching �175 Billion, and at a faster pace compared to 2007 (+1.4%). Fixed capital expenditures (CAPEX) grew in 2008 by 2.9%, the average of fixed network investments growth slow down compared to 2007 (+4.7%). Mobile CAPEX levels were higher in 2008 as mobile investments grew by 15.4 %, and growing faster than the year before (+9.9%).

Guidance for 2009: Slow CAPEX Evolution Predicted: Overall, we expect market growth rate to be constricted by the grim economic climate in 2009. Still, major investments from Asian service providers, such as China Mobile or Bharti in India will keep investing significantly to increase coverage and capacity in underserved areas. Also, Chinese service providers are expected to invest about $3 billion for their 3G networks in 2009. In the Philippines, Digitel, said Monday, it plans to spend around $350 million in 2009, compared to $300 million in 20085, to upgrade and expand its network.

In the Middle East & Africa region, we expect Turkish mobile service providers to boost the CAPEX growth in 2009 as Turkcell's CEO Sureyya Ciliv�s announced that their "total CAPEX investment is going to double from year 2008 to 2009�. MTN, South Africa-based mobile group claimed it grew its subscriber base by 48% in 2008 and seems optimistic about the subscriber addition they will make in 2009. Therefore, this major player in the African market will keep rising its CAPEX in 2009. Du from UAE, another main service provider in the Middle East & African region, is also expected to allocate a significant amount of its revenues to its CAPEX in 2009 and says it would spend up to �390 million by the end of the year.

In other regions, mobile service providers already announced that they would be cautious in 2009 and delay major spending. It is the case in the US, for instance, where AT&T announced that their "network upgrades are slated to begin later this year, with completion expected in 2011".

In Western Europe, Deutsche Telekom CAPEX was about �100 million to increase broadband coverage. The German operator initially wanted to allocate about the same amount for its network expansion in 2009 but might just review its plan and reduce significantly this figure. Elsewhere, Portuguese service provider, Portugal Telecom, decided to increase its optical fibber CAPEX by 10% in 2009.

In Latin America, service providers might also slow down their investments in 2009, but they will probably rise again in 2010, especially if Chile and Peru governments award 3G licenses towards the end of the year.

N�478 - RFID & Internet of Things -

2009-09-16

Montpellier, France � September, 16 2009 � RFID has gone beyond its initial positioning as an ID access solution, to provide advanced applications like supply chain management, and will progressively become mainstream. While still suffering from some major technical imperfections (especially for read rates in metal and/or water environments), the major issues that need to be addressed before greater deployment of RFID are related to business models. RFID has proven to have higher value in environments that can take full advantage of this technology: high levels of automation (no line of sight), large volume simultaneous reading, real-time modification or management of objects with complex characteristics. But achieving ROI with RFID is still challenging, as set-up costs are still prohibitive with physical tags and integration processes, and as benefits are not sufficiently shared along the entire value chain.

The Internet of things, in which any objects and items could connect to the Internet to retrieve information to enhance its intrinsic value, is still years away. Using RFID to tag an object with a virtual label remains the best option (compared with barcodes) for easy-touse solutions that are combined with NFC devices. Beyond tags, the Internet of things requires a completely new infrastructure to handle the large databases that have to be deployed to allow for open loop solutions. In the medium term, as with similar initiatives in the past, most IOT solutions will remain, in fact, internal B2B projects.

The market for RFID and IOT is mainly benefiting hardware providers (tags and reader manufacturers). However, the RFID market will really become significant and reach another order of magnitude if tags become commodities. Major long term opportunities will first concern IT services and then IOT services based on platforms and middleware that enable the numerous information exchanges between all the vertical players involved. Key players should emerge as aggregators around services similar to those of the web.

Despite attempts to develop a set of shared technologies, RFID and IOT are vertically-driven markets. Therefore the pace of development will vary significantly between all the vertical markets, depending on their technical and business maturity regarding the adoption of RFID. Textile and cultural goods industries have made most progress in this area, while the food industry is the most promising in terms of volume but has yet to find a business model to reach the item-level. The global downturn has clearly some impacts for RFID and IOT deployments, as these technologies are dependant on the underlying vertical markets, some of which, like the automobile industry, have been heavily impacted.

N�477 - M2M : The Machine-to-Machine market is still growing despite the global downturn -

2009-09-16

Montpellier, France � September, 16 2009 � �The M2M market is still growing despite the global downturn� says Samuel Ropert, Project Leader of the report. In 2009, the cellular market should represent 38 million modules worldwide for a total market of 11.2 billion EUR. But growth in 2009 will be much lower than expected, less than 10% in value and 25% in volume, as most of the vertical markets are suffering from the economic crisis (automotive, industrial machines). The situation should be the same for satellite M2M, representing 1.03 billion EUR in total market value for 2009, although the target markets are not the same.

All the players hope that emerging markets will take the M2M market to the next level with forecasts of 27.3 billion EUR for cellular M2M and 2.1 billion EUR for satellite M2M in 2013. Expected volumes are huge because they are related to very commonplace machines (cars, meters, consumer products�) and could account for 6.5% of SIM cards in Europe by 2013. Most of these new solutions have less well defined business model and therefore remain more dependent on the application of vertical regulations which would be hard to implement without the deployment of M2M. This also explains why Europe is leading the M2M market (more vertical regulations in Europe), while USA is the leader for satellite-based solutions (especially on homeland security).

While some telcos were reluctant to position themselves directly on these markets a few years ago, most of them are now battling actively to carve out a significant share of the market and are trying to distinguish themselves through technical initiatives (IPv6, hardened or embedded SIMs, portals�) and other business features (international one-stop shopping, leasing�). M2M offers them attractive opportunities, as, despite low ARPU, projects offer high lifetime value, reduced churn rate and average deals representing thousands of SIM cards. Connectivity alone should represent 4.3 billion EUR in 2013 and more than 4% of mobile data revenues for European telcos. MVNOs are being pushed out of the market and are therefore repositioning themselves as tool providers, while module providers are having difficulties to break even in a market in which unit prices are falling.

N�476 - FTTx World Market -

2009-08-27

Montpellier, France - August, 27 2009 � IDATE has published a complete report summarizing the main results of its latest analysis of the world FTTx markets.

FTTx deployments still in progress
As end of 2008, the global FTTx market which includes FTTH/B, VDSL, FTTLA and FTTX+LAN architectures represented 48 million subscribers. FTTH and FTTB are still the most prevalent network architectures, accounting for more than 61% of the fibre-connected subscribers. Those architectures and in particular FTTB based, are the most economic and the most suitable solution for operators to increase their bandwidth in many countries especially in Asia (densely populated areas) and also now starting in emerging countries.

FTTH/B: the prevailing architecture
The global FTTH/B market continues to make strides. Growth in 2008 was significant, with more than 8 million additional subscribers (+39% over the past 12 months) bringing the number of FTTH/B subscribers around the world to just over 29 million at the end of 2008.

Asia Pacific is still the FTTH/B market leader, and subscriber growth is accelerating thanks to China:
It is not surprising that Asia Pacific continued to dominate the FTTH/B and was the major contributing region in terms of subscribers with near 5 million additional users in one year. The highest worldwide concentration of FTTH/B subscribers was in the Asia region: with close to four-fifth of the global FTTH/B subscribers at the end of 2008. The number of FTTH/B subscribers in the Asia Pacific region rose from 17.9 million to more than 22.7 million between December 2007 and December 2008. Thus, the Asian market accounted for the bulk of the global FTTH/B market, with Japan and South Korea still leading the way.

North America region marked by a substantial growth driven by United States:
Reaching 5 million FTTx subscribers at the end of 2008, the United States market continued to progress, particularly in the FTTH/B market with 1.9 new subscribers in one year. The US is the global third largest fibre access market, behind Japan and South Korea, and accounts for 16% of the globe�s FTTx subscribers. Marking a 90% increase over the end of 2008, it makes the United States the globe�s fastest growing FTTH/B market.

European market gaining momentum:
Still well behind the Asian and North American markets, the Western Europe market appears to gain momentum. As of December 2008, it accounted for 5% of the global FTTH/B market with more than 1.5 million subscribers, compared to just over a million at the end of 2007 (+60% growth in on year). High disparities characterize the Western European FTTH/B market as only six countries combined account for 81% of the subscriber base: Sweden, Italy, Norway, France, Denmark and the Netherlands. Concerning Eastern Europe, Russia is representing already a booming FTTH/B market with at end 2008, 630 000 FTTB subscribers and 6.3 million Homes Passed.

FTTx Vendors' dynamics:
The installed FTTx ports are estimated worldwide at 83.3 million as end of 2008. At end of July 2009, we can now present a first estimate of the vendors global market shares at 2009, Q2. In a very fragmented FTTx market, the global top six vendors is composed of Asian equipment vendors, ZTE being the market leader. Huawei came in second position followed by the Japanese manufacturer Mitsubishi in the third position.

FTTH Market Forecasts 2014:
The very high broadband access (FTTH/B and VDSL5 combined) is expected to experience steady growth in the coming years, to reach close to 140 million subscribers around the globe by 2014. Naturally the rate of progress will not be the same across the board, as each national market will be shaped by the country�s intrinsic features and its players.

The full research report is freely available upon request from IDATE.

N�475 - IDATE signs a strategic agreement with Centris, a North American based marketing intelligence organization -

2009-07-10

IDATE expands the distribution of its catalogue of market reports and databases through a strategic agreement with Centris, a North American based marketing intelligence organization.

Montpellier, France - July, 10 2009 � IDATE today announced it has entered an agreement with Centris to expand its market intelligence reports to US companies and public bodies. IDATE will bundle Centris research reports into its own syndicated offering, providing its clients with a unique perspective on a the very powerful and original tools for tracking consumer demand for voice, video and data solutions in the United States.

IDATE is a leading European market analysis and consulting firm with over 30 years experience providing market data to companies in the telecommunications, Internet and media markets. Centris is a U.S.-based marketing intelligence organization that focuses on how consumers use technology for information and entertainment.

According to IDATE CEO Yves Gassot, �This partnership helps strengthen IDATE�s ties with the North American market and provides an opportunity to forge synergies between our teams of consultants devoted to the special requirements of the telecom, Internet and media markets, which we have both been tracking for a very long time. The U.S. will be honoured this year as the guest country of our upcoming DigiWorld Summit�

�Our new relationship with IDATE is an important strategic initiative for Centris. Our collaboration will provide our U.S. clients in the voice, video and data markets with an expanded research perspective that includes the IDATE global perspective,� said William J. Beaumont, President of Centris. �As an initial step, we will be providing IDATE�s research reports in our Syndicated Report bundles, increasing the value of the strategic information we provide our clients.�
� Infrastructure and equipment
� Mobile broadband and mobile services
� Internet services
� Media and digital content

For more information about syndicated research reports from IDATE, visit www.idate-research.com or contact Isabel Jimenez, i.jimenez@idate.org

The United States, the guest country of the DigiWorld Summit - 18-19 Nov. 2009 (France)
This year, the United States is the guest country of IDATE's yearly international conference. Several keynote speakers will attend to share their visions on the theme: �Open Innovation �
> Details & Program at www.digiworldsummit.com

About Centris
Centris is a member of the AUS Group, one of the top research organizations in the United States. Centris provides market intelligence on buyers� preferences and behaviors relating to the purchase and use of voice, video and data services. Centris conducts daily market surveys providing clients with syndicated research reports, tracking reports and custom studies. In addition, Centris develops and maintains analytic models and provides consulting services to help marketers plan and evaluate their marketing strategies, track competitor actions and optimize their marketing mixes. Centris helps its clients grow revenue, expand margins and build strong brands. For more information, please visit www.centris.com.

About IDATE
Founded in 1977, IDATE is one of Europe�s foremost market analysis and consulting firms, whose mission is to provide assistance in strategic decision-making for its clients in the Telecom, Internet and Media industries, through the following two areas of activity: Consulting & Research (an independent consultancy and publication of a catalogue of market reports) and the DigiWorld Programme (a member-supported annual programme: DigiWorld Club, DigiWorld Summit, DigiWorld Yearbook, and Communications & Strategies economic review).

N�474 - Mobile VoIP -

2009-07-03

The massive surge in mobile data usage enabled by broader 3G network availability, higher download speeds and better adapted smartphones such as the iPhone has been a source of hope in an otherwise quickly saturating mobile industry in advanced European and North American markets. This momentum has led to a number of popular Internet applications (search engines, instant messengers, games�) being transposed for mobile access and use, few of which have generated more anticipation, fear and outright hype than voice over IP (VoIP).

This paper (free download on your right) explores the burning question of whether the time for a mobile VoIP �tipping point� has come. We feel that mobile VoIP is not ready for primetime yet for several reasons:

1. Mobile and fixed VOIP are fake twins
While there are interesting lessons to derive from what happened in fixed VoIP in terms of market acceptance factors (simple and universal end user experience, acceptable quality of service, attractive pricing), fixed and mobile networks have intrinsically different technical attributes. Consequently, the bandwidth and capacity constrained mobile environment creates substantial implementation challenges for the large scale adoption of a bandwidth, latency and quality of service-sensitive application such as mobile VoIP.

2. Mobile VoIP is still in its infancy with highly limited use cases
Current mobile VoIP solutions have severe limitations for end users in terms of usability and availability as they only operate in semi-nomadic use in 3G or Wifi coverage areas while not ensuring 3G to 2G or 3G to Wifi handover or proper carrier to carrier handover. They also induce significant handset battery drains while not being easily operable across most handsets.

3. Current mobile VoIP on 3G has many of the �solution looking for a problem� attributes
Packet data channels of 3G were initially designed to enable a �best effort� transport of data services alongside a robust and time tested (derived from GSM) circuit switched design for voice services. Introducing mobile VoIP in the resource constrained mobile environment (i) creates technical and quality of service challenges that traditional mobile voice was designed to avoid, (ii) disrupts the complex service provisioning tradeoffs that operators need to achieve for a mass market high quality service (iii) while, for the time being, neither generating clear usage benefits for the majority of users nor for mobile operators.

4. Mobile VoIP should become a widespread service through the combination of optimized managed VoIP solutions, pervasive HSPA and better yet LTE networks
The long term dynamic towards unified voice and electronic (email, instant messaging, social networks�) communications integrated with presence and location features are creating compelling long term benefits for users and operators alike. These will be enabled by the emergence of managed VoIP solutions which by prioritizing packetized voice can (i) address the limitations of current mobile VoIP, (ii) optimize network resource utilization to enable the development of other mobile data services and (iii) capitalize on widespread availability of higher bandwidth mobile access.

N�473 - New challenges for the Video Game Industry - 11 september 2006

2009-03-31

This issue of Communications & Strategies is above all an issue devoted to one sector, namely video games, and correlates to some degree to previous issues dedicated to the media (no. 62 & 71), to Web 2.0 (no. 65) and to the payment systems industry (no. 66).

The choice of video games as the central theme is justified by the growth of its various markets. It is no longer a marginal sector in terms of size, nor limited to only a niche population. It is expanding in several directions which are both enhancing it and intertwining it with a number of ICT markets (digital entertainment, Web services, mobile services, e-training, �) � and so helping to further spur the momentum.

Examining the video game sector and its underlying trends also provides a good cross-section of a great many of the economic issues that we regularly explore in our dossiers, whether analysis of two-sided markets (no. 61), the impact of bundling (no. 63) or vertical integration strategies (no. 68).

Anticipating the central theme of our next issue, I will add to that the topic of open innovation. As with previous dossiers, time and space restrictions prevented us from being able to address every aspect of this sector, so we will no doubt revisit this topic in future articles or future dossiers. In the meantime, I should like to extend my heartfelt thanks to our deputy
editors, Edward CASTRONOVA and Laurent MICHAUD, for their work on this issue.

It only remains for me to wish you happy reading, and to remind you that any comments and suggestions regarding this or future issues are most welcome, and should be addressed to our editorial coordinator.

Please find additional informations about this issue of C&S by following this link.

N�472 - Three scenarios for the TV market in 2020 -

2009-06-18

IDATE has just released a report on the future of television, based on forward-looking analysis that takes as its point of departure an in-depth diagnosis of the industry in 2008 and 2009 � then combined with an assessment of macro-economic trends to sketch out three development scenarios, backed by figures for Europe and the United States.

"This report follows through on an earlier prospective study we performed over four years ago, and on a series of works that have been produced since then on new forms of TV (mobile TV, pay-TV, IPTV, TVHD, 3D TV�)", explains IDATE�s Deputy CEO, Gilles Fontaine, "and allows us to distinguish the effects of the current recession, which are weighing on media companies, and the overriding trends that are bringing lasting changes to the TV industry as a whole".

All of the conditions needed to the TV industry to migrate to the Web are now in place:
� consumers who are used to watching videos online;
� technical solutions that provide access to Web content on the TV screen;
� open Internet access on mobile phones;
� premium content available online;
� improving quality of service for online video
� confluence of the strategies of new players coming from TV-related sectors.

This migration will be gradual, but it will have a deep-seated impact on the industry:
� exclusivity for rights distribution will no longer be the rule;
� some consumers will abandon traditional managed networks;
� onset of a globalisation trend that will benefit the major copyright holders.

Unlike the music and print media industries, the TV industry is forging itself a solid position on the Internet, which means that it can be a central player in online video services. The offensive strategy will likely pay off down the line, but will imply value destruction. This destruction will be caused by structural elements: fiercely competitive online advertising market and a lack of control over the circulation of programmes.

Far from being simply transitory, the economic downturn in 2009-2010 marks the onset of a decade of restructuring for the TV industry, which will begin with an overall decline in the sector�s resources before the proliferation of platforms comes to spur a new period of growth. The decade running from 2010 to 2020 will also be a time of cost cutting, with the industrialisation of TV production that departs once and for all from its historic model, i.e. cinema.
The European industry is particularly threatened by the migration to the Web. A review of the regulatory strategy for the audiovisual sector appears both necessary and urgent, and will involve the creation of integrated pan-European conglomerates.

It is against this backdrop that the IDATE report offers up three distinct scenarios:

� The �My Video Web� scenario, which IDATE has chosen as the most likely shape of things to come. It reflects a situation where the current crisis speeds up migration to the Web, the nervous system of social life. It is characterised by ubiquitous roaming, the development of online storage, universal and free connection and a predominance of social networking.

� The �Broadcast as Usual� scenario emerges from an environment where the recession is protracted, fixed and mobile ultra high-speed network rollouts are few in number and the Internet does not become the central entertainment medium. This is a scenario that remains favourable to media companies to the extent that the Internet�s destruction of value remains limited.

� The �Community TV� scenario describes a situation of social instability and State control over the network, combined with user concerns over health risks and protecting their privacy and increased clustering into communities. This scenario is less favourable to the development of a market that will remain fragmented and not terribly solvent.

N�471 - Femtocells - 15 May 2006

2009-06-11

The global Femtocell market will generate � 875 million in revenues for Service Providers by 2013 for 9.7 million shipped units. The market is not as promising as expected since the added value a Femtocell solution offers is too low in the eyes of endusers.

IDATE is publishing the second edition of its Femtocells Report. This report provides an overview of the latest trends in the emerging Femtocell market and examines how mass market deployment levels will be reached and what hurdles must first be overcome. It provides an analysis on roll out strategies, Femtocell standards, network connection methods and the strategies to reduce operator costs and increase revenues.

�Our market forecasts are quite cautious�, says Mathieu Limousi, Project Leader of the report, �because Femtocell mass market adoption conditions are not fulfilled yet and we also have to take into account big regional discrepancies�

� In total, integrated and mobile service providers will spend over � 734 million by 2013 for femtocell equipment. Integrated service providers are best positioned to offer Femtocell solutions as in addition to extending mobile network to the household, Femtocell is a fully convergent solution.

� The most dynamic market will be the USA as it will account for about 50 % of CPE shipped at the end of 2013. Asian operators will hold 26% of the market while the 23% remaining will be shared among some of the Western Europe service providers.

� Regional disparities are due to different expectations associated with Femtocell. North American users see strong value in the indoor coverage capabilities of the solution. But consumers in Asia and Western Europe expect more than just a better quality network: for them, the added value of Femtocell is in its convergence features.

Femtocells World Summit 2009 - June 23rd - June 25th, 2009 London, UK
IDATE is Analyst Partner of this major event and will take part in
Track A, June 24 at 11:30 on the topic of �Femtocells: Market Drivers,
Geographical Discrepancies, Consumer Demand� � presentation by IDATE
Femtocells expert, Mathieu Limousi.

Conference details

N�470 - Practices - 12 june 2006

2009-06-22

Please find additional information about Practices by following this link

N�469 - FTTx: global operator rankings - 6 March 2006

2009-06-08

On the whole, the global FTTH/B market continues to make strides. Growth in 2008 was steady, with close to 8 million new subscribers (+37% over the past 12 months) bringing the number of FTTH/B subscribers around the world to just over 29 million at the end of 2008, of which close to 80% are located in Asia.

Asia is the continent with the largest number of FTTH/B subscribers (22.7 million). Among the ten countries with the biggest FTTH/B subscriber bases, five are in Asia (Japan, South Korea, Hong Kong, Taiwan and China), one is in North America and four are in Europe.

Two Asian countries in particular, namely Japan and South Korea, stand out and are rivalled only by the US in terms of users: they are the only three nations with over a million FTTH/B subscribers.

Thanks to its large population, the United States is expected to eventually catch up, especially if we include VDSL systems. According to IDATE, FTTH/B subscribers in the United States will outnumber South Korean subscribers by 2011 � although Asia will remain the biggest market, in large part due to a huge upswing in users in China around 2012.

In terms of operators, the gap between Asia and the rest of the world is still considerable: among the globe�s ten largest FTTx operators, six are Asian, two are North American and two are European.

Only six operators in the world have a base of more than a million subscribers, four of which are Asian operators and the other two are based in North America. NTT is the largest FTTx operator with a base of 10.6 million subscribers or a 73% share of the Japanese market and a close to 37% share of the global market.

� 3rd Assises du Tr�s Haut D�bit � 9 June, Paris (Senate)
For the third consecutive year, IDATE is organising a one-day conference devoted ultra-fast broadband, in partnership with Aromates. This year�s topic is: �Towards a digital New Deal�.

� FTTx Summit 2009 � 10 June, Munich, Germany
Renewing its partnership with this important event, IDATE will take part in Session 2 at 2 p.m. on the topic of �Market Analysis � Developing accurate cost models for FTTH�.

N�469 - About IDATE - 9 March 2006

2009-06-22

Please find additional information about IDATE by following this link

N�468 - The Digital World challenges - 23 December 2005

2009-05-12

A round-up of the state and challenges of the digital world

IDATE is releasing the 9th edition of its DigiWorld Yearbook which provides readers with a single volume round-up of outstanding analysis of the globe�s telecom, Internet and media markets from IDATE specialists from the past year, along with supporting data and a look at innovations to watch in the months ahead�

The DigiWorld Yearbook is published in English, French and Spanish (in collaboration with the Enter foundation). Launch ceremonies with special guests will be held in Paris (on 12 May, with a talk from Nathalie Kosciusko-Morizet), in London (on 11 June, with Michel Combes, CEO Vodafone Europe), in Brussels (on 23 June with Fabio Colasanti, Director-General InfoSoc EC) and in Madrid�

The 2009 edition reveals that the combined growth rate for DigiWorld sectors last year dropped to 4.8%, while generating 2,740 billion EUR and representing 6.5% of global GDP in 2008. According to the Yearbook�s coordinator, Didier Pouillot, this decline is only partially due to the economic downturn, and can be attributed chiefly to the maturity of certain markets.

The report nevertheless illustrates the intensity of the changes at work in the different sectors, underscoring the growing weight in the equation of Asia and emerging economies, and by exploring the main issues and trends that emerged in 2008. It provides the latest IDATE data on mobile markets, broadband market growth, optical fibre network rollouts and video game markets. Also included are analyses from the Institute�s experts on topics such as the challenges being faced by TV networks as online video continues to gain momentum�

In his introduction, IDATE CEO, Yves Gassot, comments on Apple�s ongoing influence, having followed the successful launch of the iPhone in 2007 with its app store model which has taken hold as the point of reference for all of the mobile Internet�s existing and potential players. He points to social networking and the extraordinary user base acquired by players such as Facebook and Twitter which, despite their ongoing struggle to monetise their audience, are steadily becoming the decisive drivers of service innovations and shapers of new communication habits. He introduces the notions of open innovation and open platform as embodiments of the paradigm shift: no digital industry leader can afford to ignore the potential for innovation and value creation that the other players in the digital ecosystem represent, including the customers themselves. The key now is to know at what point to open their platforms up, and in what way�

In his foreword, IDATE President, Francis Lorentz sees in this crisis, which this time did not start inside the DigiWorld, as a real threat if public authorities do not take account of the central influence of these sectors in their recovery plans, but also as an opportunity to take advantage of a new innovation cycle that is opening up with the mobile Internet and cloud computing.

Order the 2009 Edition

N�466 - Online Advertising - 27 April 2009

2009-04-27

In its latest report devoted to the online advertising market, IDATE confirms that the global online advertising market had a net worth of 30.6 billion EUR in 2008, and will climb to 58.8 billion EUR in 2012 � accounting for 15% of advertisers� total spending.

�On the whole, the economic crisis will be beneficial for the Web,� says Sophie Girieud, the report�s project leader. �The online advertising market�s growth is sustained by ad monies being transferred from traditional media and below the line marketing campaigns, both national and local, to the Web, and more specifically to direct marketing. The recession is expected to further spur this trend of shifting budgets, with advertisers leaning increasingly in favour of the Web. This means that, in 2009, the Internet will likely be the medium to enjoy the greatest increase in ad spending, even if overall investments will be down.� IDATE forecasts that the global advertising market will grow by 12.1% in 2009 compared 20.7% in 2008.

� Online advertising revenue will increase at an average annual rate of 19.6% between 2009 and 2012, sustained by the ongoing rise in consumption and in the number of users, and by advertisers shifting their budgets from traditional media and offline non-media marketing, both national and local, to the Web, and more specifically to direct marketing and especially sponsored links. The economic downturn is expected to further spur this trend of shifting budgets, with advertisers leaning increasingly in favour of the Web.

� The Internet is above all a below-the-line marketing medium: search marketing accounts for half of the global online advertising market 2009, or 17.2 billion EUR. It will represent 53% of the market in 2012, generating an estimated 31.3 billion EUR.

� Net revenue generated worldwide by display ads will go from 12.3 billion EUR in 2009 to 21.2 billion EUR in 2012. Its share of the global market will hold more or less steady at around 36% thanks to the development of rich media and video advertising formats. Video ads are expected to be the online format with the strongest growth momentum in the coming years.

N�465 - FTTx Forecasts - 6 April 2009

2009-04-06

IDATE confirms that, despite the downturn that is affecting virtually every economy, the ultra high-speed access market is expected to grow significantly � with the global customer base increasing to 140 million by 2014. FTTH/B technologies will dominate the market, accounting for around 114.4 million subscribers, compared to around 25.6 million customer for VDSL.

Several indicators confirm the interest that exists in deploying very high-speed infrastructure, notably those pertaining to the consumer electronics market. All multimedia equipment is still enjoying solid popularity, in part thanks to the drop in prices which is expected to continue over the next several years.

The growing number of devices in use will generate increasing demand for bandwidth. Following through on previous years, a number of FTTx infrastructure rollout projects came to fruition in 2008. In some countries, in Eastern Europe for instance, these were brand new projects launched by national and in some cases international operators, such as Vimpelcom in Russia and Ukraine.

Although broadband is not yet a fully mature market in many cases, it does seem entirely plausible that the switch to FTTx will be much faster because operators will be able to anticipate future needs and will deploy more future-proof and high performance infrastructure directly.

At the same time, some deployments in 2008 took place more slowly than originally planned. Such was the case with certain operators in France, even if their long-term strategy is not being questioned. It is nevertheless our opinion that these delays will affect the rate of subscriber growth and could, depending on the zone, mean that target figures from earlier forecasts will take roughly one year longer to reach.

�Ultimately,� says Roland Montagne, the head of IDATE�s Broadband/FTTx Practice, �FTTx remains a sector with high growth potential, hitting its peak rate of increase some time between 2010 and 2012, topping out at up to 30% from one year to the next. By 2014, FTTH/B technologies will have taken the lead over VDSL rollouts.� The way the subscriber base is distributed around the globe is not likely to change in any significant way, however:

- Asia likely to remain the region with the biggest FTTH/B market, and even becoming the core VDSL market as well, given the current strategies being implemented by certain Asian operators.

- Meanwhile, although growth there was slightly below forecasts in 2008, the United States is still likely to stay about a year ahead of Western Europe.

- Elsewhere around the globe, FTTx will be a central driving force behind telecom market growth in Eastern Europe, but much less so in other regions like the Middle East. Despite the potential of this region, and of the Gulf States in particular, it nevertheless remains that announcements coming from operators have yet to confirm any real development for FTTx in the short term.

Discover our "FTTx Watch Service" specifically designed to provide with a global FTTx projects database, a comprehensive analysis of the issues affecting this promising market:

> Database: a unique, continually updated FTTx market database, providing market data by country and by technology, along with forecasts for the coming months and years

> Insights: Monthly views on key issues

> Market reports: Quarterly

N�464 - Media companies� e-Commerce Strategies - 18 March 2009

2009-03-18

In this note IDATE examines media companies� relationship to e-commerce. For most of them, advertising alone is not enough to finance their online operations, added to which they are having to contend with a growing field of competitors: pure players, content aggregators, other media UGC (User-Generated Content).

CPM is lower online than off: an online consumer generates five to 10 times less ad revenue than an offline consumer. E-commerce is thriving and offering media sites a potential source of added income, particularly if they have been involved in sales activities offline for a long time (shopping channels, licensed products, co-branded and special editions).

� Media companies are having to contend with greater competition on the Internet than in the physical universe: pure players, content aggregators, other media UGC (User-Generated Content). CPM is lower: an online consumer generates five to 10 times less ad revenue than an offline consumer.

� At the same time, the e-commerce market is growing steadily, added to which media companies are already veterans of offline sales (shopping channels, licensed products, co-branded and special editions).

� The media now have the opportunity of developing into veritable media stores by incorporating e-commerce offers into their editorial content.

� Depending on their size and how qualified their audience is, traditional media companies� websites can roll out different e-commerce strategies:
- simple affiliation to monetise audience,
- price comparison service,
- licensed products,
- specialty e-commerce,
- e-commerce incorporated into editorial content.

The different models can be combined depending on the product involved, and the cohesion with the company�s core business and audience. Media companies� websites would also do well to develop a two-sided business model, whereby each side � namely ad revenue and their media store business � feeds the other.

N�463 - Broadband via Satellite - 17 March 2009

2009-03-17

This report examines recent developments in the United States, Asia and Europe, analyses the issues involved in rolling out these services and assesses the opportunities tied to the deployment of fixed satellite access services in residential markets in Europe and North Africa.

Broadband via satellite back in the news

According to Maxime Baudry, the report�s Project Leader, �Two-way solutions have been developing for several years now, allowing users to do away with the need for a telephone connection. While traditionally using the Ku band, the Ka band was introduced in 2005 as an added alternative�. Despite certain technical restrictions, the introduction of the Ka band helps drive a �revival� of high-speed satellite access thanks to a much more appealing business model than the one tied to the introduction of the Ku band several years back. Overall, the current price per Mb for the Ka band is four to ten times less than for the Ku band, which has been made possible by a satellite capacity that has increased by a factor of 70 in a matter of years, for the same price. The price of the user terminals, which is also key to the success of high-speed Ka-band satellite access, has dropped by a factor of six in five years, going from 2,000 EUR in 2004 to 350 EUR at the end of 2008.

Main conclusions of this IDATE report

� IDATE estimates that there were still over 30 million households in Europe and North Africa that were not covered by a terrestrial broadband solution in 2008, or 16% less than in 2007. More than half of these households are located in North Africa.

� After having emerged in North America and Asia, satellite broadband in the Ka band was introduced in Europe in mid-2007 and has since proven a popular solution for several European telecom operators looking to cover the several thousand customers still cut off from the digital world.

� The market expected to enjoy the highest rate of growth in the coming years is the Ka-band satellite market, especially thanks to wide-reaching government plans to reduce the digital divide.

� The revival of the satellite broadband market has been enabled by a massive drop in the price of terminals, combined with the introduction of the Ka band which has helped bring down the price of bandwidth considerably.

� In the battle with terrestrial technologies, and particularly wireless ones (3G and WiMAX), satellite technology needs to leverage its assets, the main one being immediate availability at a reasonable cost.

IDATE�s analysis includes four strategic scenarios based on four geographical zones defined according to key criteria that allow us to establish the most suitable positioning to adopt for marketing a satellite broadband service in each.

N�462 - e-Paper vs. Print Media and Publishing - 12 March 2009

2009-03-12

In its report devoted to the outlook for e-paper, IDATE provides an analysis of the issues surrounding electronic paper technologies, examines the status of these technologies and the challenges inherent in the main vertical markets, notably for print media and publishing.

The electronic paper, or e-paper, market is just now taking off, built chiefly around a few central applications. Electronic paper, which is sometimes referred to as electronic ink, is not really just a single technology but rather a set of electronically modifiable display technologies used to mimic the appearance of paper. e-paper is therefore competing not only with ordinary paper products (loose leaf, cardboard) but also with screen technologies (LCD, OLED). The e-paper market is still a small one but is expected to reach 2 billion USD by 2012, starting to build a real momentum in 2010 � centred initially around a few applications but eventually extending to a great many sectors.

� At a time when content is being digitised and revenue is shrinking in most media segments (with the exception of the free press) due to competition from the Internet, the print media sector is making the logical move towards embracing this technology as an additional medium, offering a new (more interactive) approach to information. The switch to electronic versions also helps bring down raw material, production and distribution costs, which account for nearly 60% of total costs.

� Purely proprietary initiatives, such as those rolled out by Les Echos and Yantai Daily in China, are still few and far between, largely because the devices are still too expensive. We are, however, seeing a growing number of newsstand type offers based on Amazon�s Kindle in the United States (which carries all the biggest daily papers from around the globe), and on Orange and SFR devices in France, which offer the major French dailies. But, the performance of the devices is still considered below par (response time, colour), notably by IFRA, an association of major print media companies, when compared to laptops or mobile phones. Investing in a dedicated device just for reading newspapers would seem a hard sell, but this device could also be used by the publishing industry for e-books.

� The publishing market is reporting meagre growth in most industrialised countries. Unlike other content, digitising books is still an area that has been little developed, except in Japan (mostly for Manga comics). Publishers are nevertheless expecting a gradual shift to digital, taking advantage of the benefits of electronic formats (indexing, storage, future-proofing, interactivity, DVD type bonus material) and of major digitisation initiatives.

� General interest publishing is making slow forays into digital, largely to avoid an upheaval in its traditional distribution channels (bookshops). e-paper also suffers from the fact that it does not offer the same visceral pleasures as a book, and forces readers to change their habits � which is why is has remained a niche consumer market up to now. Several publishers have, however, already associated themselves with Amazon�s Kindle, which offers a reader with a 3G connection (connectivity included), a small selection of integrated services (including free and unlimited access to Wikipedia) and a content distribution platform, for a standard price of 9.99 USD a piece for books from the New York Times best seller list (i.e. below retail). This strategy is similar to Apple�s approach to music with the iTunes/iPod combination. Despite major limitations (interoperability, minimalist design), Amazon has already sold close to 300,000 units, targeting technophiles and book lovers first and foremost.

� Emergence of specialised applications: e-paper seems to be best suited to business-related editorial content, with a more educational or encyclopaedic style. The e-paper device can hold large volumes of content and be used when on the move (low energy consumption, lightweight), even in extreme environments. e-paper is already used in aerospace applications and is being tested by the legal sector and by various manufacturing sectors (e.g. for maintenance manuals). In the realm of consumer applications, e-paper could be used initially for applications such as travel guides.

N�461 - DigiWorld Summit 2009 - 4 March 2009

2009-03-04

More on: www.digiworldsummit.com

Next IDATE's DigiWorld Summit
November 18 & 19 � Montpellier (France)

What do �open� concepts really entail (open source, open API, open mobile, open internet, open television...)? And what do they tell us about disruptive innovations, the way digital industries will be organised in future, about industry leaders, the new business models, changes in standardisation and IPR practices, the rules of competition, public policy priorities�?

� Open Innovation and Web 2.0: how do social networking and UGC players manage innovation on their platforms? What are the different models? What role for telcos?

� SAS, Cloud computing...: the role of Linux in new services and computing architectures

� Open Mobile and the mobile Internet value chain: issues surrounding opened OS, API, stores (for downloads), spectrum access�

� Open IPTV: managed TV vs. online TV offers

� Open DRM, global licences�: measures to counter media content piracy

� Open Net/Open Access: do we need Net neutrality legislation? What impact will it have on incentives to invest in new fixed and mobile high-speed infrastructure? What role for public money in the "stimulus packages"?

� Open telcos: which models (vertical integration, mutualisation, functional separation�) can generate a new profit cycle?

� Openness and competition: what are the new competition issues that need to be addressed?

> The views of digital industry leaders (telecom, Internet, media)

> Analysis from IDATE�s experts

> Close-up on the Guest Country for 2009: USA

Contacts
> Programme & speakers : Sophie Monjo, +33(0)4 67 14 44 13 - s.monjo@idate.org
> Sponsoring & Organisation : No�lle Sulmoni-Laborde, +33(0)4 67 14 44 08 n.sulmoni@idate.org

N�460 - Telecom equipment - 3 March 2009

2009-03-03

Increased pressure

The global telecommunications equipment market grew by close to 5% in 2008: a moderate rate of growth that involved a shift in the contribution made by handset components and infrastructure hardware. From a geographical standpoint, Asia was the prime source of growth � specifically China and India � which accounts for two-thirds of the increase in sales worldwide, while representing only just over 40% of the total market (and China and India combined accounting for less than 20%).

Indian operators� investments have increased by close to 50% a year since 2003, on average, or by seven times in five years. From a broader perspective, the Asia-Pacific region�s contribution to global spending on telecom networks increased by four points during that time, while Western Europe and North America lost six and five points, respectively.

Bleaker outlook

In the world�s advanced regions, where the situation in an already lifeless services market has been worsened in recent times by the prospect of a looming economic crisis, operators are tightening their belts further still to be able to maintain their margins, and are being particularly cautious about their investments. For equipment manufacturers, this means added pressure on sales, especially since the handset market, of which mobiles represent 90%, is also suffering a downturn after three to four years of double-digit growth.

The rise of Asian manufacturers

In the infrastructure equipment segment, it is Chinese companies that are enjoying the strongest growth momentum by far and which no doubt have the best prospects when it comes to exports, as much to emerging markets as to mature ones. Huawei�s revenue increased six times between 2003 and 2008, during which time ZTE�s quadrupled. Among Western companies, Cisco and Ericsson have fared particularly well, thanks to growth in IP routing hardware sales for Cisco � helping the company multiply its sales by a factor of 2.5 in five years � and to the success of infrastructure-based services for Ericsson, whose sales nevertheless dipped in 2008.

The big mergers, on the other hand, have translated into mediocre performances for their protagonists: Nokia Siemens and Alcatel Lucent reported sales in 2008 that were only just equal to 2003 levels. These results, and particularly the downwards slide since 2005-2006, can be seen to be due to the sluggish momentum in Europe and North America in particular. Meanwhile, the lack of critical mass has increased the pressure on smaller players such as Motorola and Nortel, in an environment where price wars are heating up � claiming Nortel as their first victim, with many expecting the firm to file for bankruptcy.

Handset market also feeling the squeeze

The economic slowdown is also likely to increase its impact on mobile phone sales. IDATE remains �quite optimistic� over the outlook for 2009, and states that the mobile phone market has progressed by 5% in 2008 reaching 1,200 units sold over the year. Mature markets where sales are driven by replacement should feel the greatest impact, with the possibility of negative sales in North America, Western Europe and Japan. Over the longer term, sales in 2010 will likely remain low (<6%) but with a renewed interest from users for innovative models. Sales could begin to gain traction once again starting in 2011, depending on how the current crisis plays out.

Opportunities for 2009

At a time of economic crisis across the globe, combined with structural difficulties in the telecom equipment market, IDATE nevertheless asserts that there are still a number of opportunities to sustain equipment makers willing to rise to the challenge:
� large scale 3G mobile network rollouts in China and India;
� the drive to continue to reduce the digital divide in other emerging countries, with extensions of wireless networks;
� investments in ultra-fast broadband networks, particularly by governments;
� increasing ubiquity of managed services, especially outsourced networks.

The telecom equipment market is nonetheless likely to suffer a downturn in 2009, with its growth rate slipping to around 1% compared to the year before.

Discover our "Telecom Equipment Watch Service" specifically designed to provide readers with a global telecom equipment database, along with comprehensive analysis of the issues affecting this market:
� Database: a continually updated market database, providing market data by country and by technology, along with forecasts for the coming months, Subscribers base, Capex and Contracts (Monthly tracking)
� Insights: Monthly views on key issues
� Quarterly market reports

N�459 - Inventory of FTTH in Europe - 11 February 2009

2009-02-11

As in previous years, IDATE has been commissioned by the FTTH Council Europe to provide an overview of the status of FTTH rollouts across Europe at the end of 2008.

To date, FTTH/B was still making real strides in Europe in terms of coverage, with some 11.2 million homes passed. Subscriber numbers are also on the rise, even if users are still concentrated in only a few countries.

In Eastern Europe, Russia has taken the lead in FTTH/B deployments and is now home to around 630,000 FTTB subscribers. If player involvement increases, the country will soon become one of the globe�s largest FTTB markets. Rollouts in the Middle East are still limited but there is real potential for FTTH/B to develop � the key driver there being massive new housing programmes.

Discover our "FTTx Watch Service� specifically designed to provide with a global FTTx projects database, a comprehensive analysis of the issues affecting this promising market:

� Database: a unique, continually updated FTTx market database, providing market data by country and by technology, along with forecasts for the coming months and years

� Insights: Monthly views on key issues

� Market reports: Quarterly

N�458 - Mobile World Market - 5 February 2009

2009-02-05

IDATE provides regular analyses of the world mobile markets' main trends - networks, terminals and services. On the occasion of the Mobile World Congress in Barcelona (16-19 February 2009), IDATE and ENTER have teamed up to publish the third edition of the special white paper: Mobile 2009: Markets & Trends taken from several IDATE market reports.

Mobile services growth decreases by 4 points and the decline of fixed telephony becomes more acute

The world telecom services market is estimated at 1,365 billion USD in 2008 � a 4.2% increase over the year before � and is expected to be worth over 1,416 billion USD in 2009. With a total turnover estimated at 742.2 billion USD in 2008, mobile services account for 54% of the telecom services market and singlehandedly deliver all of the sector�s growth. But the annual growth rate has dropped from more than 12% in 2007 to 8% in 2008. The mobile customer base worldwide grew by another 17% in 2008, but is offset by a steady decline in average revenue per user (ARPU) which dropped to 17.50 USD a month in 2008. Meanwhile, fixed network services are stagnating.

The revenue generated by data services � whose growth is being spurred chiefly by broadband access � rose by 20 billion USD in 2008, while fixed telephony revenue dropped by as much, even if the impact on the base is still limited: the number of fixed phone lines shrunk by just over 10 million during the year, i.e. by just under 1%. The number of broadband connections grew by close to 20% to 415 million at the end of 2008: with an average density of 6.4 broadband connections per 100 inhabitants, this market still has considerable room to grow, especially in emerging economies. In more advanced markets, broadband density is over 30%, i.e. between 70% and 80% of households are already equipped.

> Read online

> Download the Report

N�457 - FTTx Business Models - 19 January 2009

2009-01-19

Starting with a model of the different expense and income items, based on data culled from deployments both currently underway and announced, this report measures the sensitivity of a number of variables that factor in to ultra high-speed network rollouts. As of mid-2008, there were 28.2 million FTTx subscribers worldwide, most of them equipped with FTTH/B (25.6 million) access and located in Asia (80%) � chiefly in Japan and South Korea. North America is home to only 3.6 million subscribers (15% with VDSL-based access) compared to a base of 2.1 million for Europe (36% via VDSL) where progress has been slow, despite some increased momentum since the start of 2008. Investments in particular remain prudent and are still concentrated in small, highly populated areas, generally city centres � at least for FTTH/B rollouts. �For a great many configurations�, says Didier Pouillot, Project Leader of this report, �economic constraints continue to be the main obstacles that operators across the board are struggling to overcome.� > Read Online

N�456 - The Challenges of New Gen CE - 17 January 2009

2009-01-17

This study initially outlines the primary new gen CE (or internet-connected CE) solutions on the market today. Devices for the home (TVs, video equipment, gateways, storage units, audio equipment, videogame consoles, computers and portable devices) are analysed, along with the services connected to them. The report then moves on to look at the central challenges facing new gen CE, by posing a range of questions. Where is the value of new gen CE? What is the role of the television in new gen CE? Is the electronic provision of digital content accelerating the development of new gen CE? What are the most innovative services in the new gen CE sector? What links are there between fixed new gen CE and mobile new gen CE? What are the new gen CE business models? How is the market expected to look in 2012? A number of key elements are behind the rise of new gen consumer electronics (CE), or internet-connected CE. � Devices now feature internal storage capabilities, or can be easily connected to external standard or multimedia hard drives, via Wi-Fi or USB. � Devices are now able to communicate with each other, and are increasingly interoperable. This interoperability facilitates the transferral of content and simplifies its modification. � Devices increasingly offer internet connections, though these are still largely optional. � Devices combine telecom capabilities with an associated digital content distribution service. � Devices increasingly have a community aspect to them, include synchronous and asynchronous communication functions, and offer content sharing and exchange. For Laurent Michaud, Head o the Digital Home & Entertainment Practice, �The two first elements have laid the foundations for the development of internet-connected CE. The latter three elements characterize the added value of internet-connected CE. New gen CE is thus a package made up of a device + an internet connection + a content distribution/dissemination service.This package is generally offered together by one or two companies. There are numerous examples in terms of fixed and mobile devices, and these will be analysed, or at least cited, in this report�. > Read Online

N�455 - Mobile Internet Services - 16 January 2009

2009-01-16

The mobile Web services market has become a central preoccupation for Internet players, mobile operators and handset vendors, all of which are working to forge a toehold before the market takes off. This report analyzes the market�s growth momentum up to 2012 and the strategies being rolled out by the players, factoring in technological challenges and expected developments in new services adapted to the mobile Internet. �Despite its allure�, says Vincent Bonneau, Head of the Internet Services Practice at IDATE, �the mobile Web market will not become significant until closer to 2012, except in Asian markets where it is already well developed (South Korea and especially Japan)�. � Only 7-15% of mobile subscribers in Europe (led by the United Kingdom and Italy) and the United States in 2007 are active mobile Web users (i.e., they connect at least once a month). � In 2012, with annual growth near 30%, Europe is expected to have close to 163 million active mobile Web users, the US nearly 110 million. This would represent 20-30% of all mobile phone users or 25-40% of the population (due to the overpenetration of mobile phones, as high as 140% penetration). � The number of users in these markets will finally exceed the Japanese market, the unchallenged leader since the launch of mobile Internet in 1999, in 2010 for Europe, 2011 for the US. However, they will still be unable to compete in terms of use, with mobile Internet penetration in the Japanese market over 80%. The other major mobile Web market is South Korea, with close to 70% penetration in 2012. > Read Online

N�454 - World Telecom Services Market - 15 january 2009

2009-01-15

IDATE�s �World Telecom Services Market� report delivers an analysis of the sector by examining the way in which the telecom industry�s main segments (fixed, mobile, data and Internet) have evolved in 45 markets, along with forecasts for the next five years. �The world telecom services market is estimated at 1,365 billion USD in 2008 � a 4.2% increase over the year before � and is expected to be worth over 1,416 billion USD in 2009,� says the report�s Project Manager, Didier Pouillot. After having increased by an average 6% annually over the past three years, i.e. from 2005 to 2007, the globe�s telecommunications services market suffered a downswing in 2008, with growth dropping to 4.2% � generating a total turnover estimated at 1,365 billion USD. The structural pressures that have been weighing on the sector for several years now (decline of the fixed voice market, advanced mobile markets reaching maturity, etc.) are being compounded by the first effects of the global economic crisis and the worsening financial climate. > Read Online

N�453 - Green Telecom - 6 January 2009

2009-01-06

In the strategic imperative of reducing global carbon emission, the telecoms industry has a central role to play: not only can the industry show the way in reducing its carbon footprint but it will serve as a central enabler of reduced emissions for other industries and society as a whole. This report assesses the current status of the telecoms industry's carbon emissions and the strategies implemented by companies across its value-chain to reduce emissions. It also considers the carbon savings enabled by telecoms across other industries. Environmental impact of telecommunications The worldwide telecommunications industry is currently responsible for 183 million tonnes, or 0.7% of CO2 emissions, a very reasonable amount considering that it represents around 2% of global GDP. The average European mobile phone user is responsible for around 17 kg of CO2 emissions per year, equivalent to a journey of 111 km ride in an economy car. The average fixed and Internet user will emit 44 kg, as much as a 289 km trip. These remarkably sober performances are only slightly influenced by the desire to be green: mobile phones are very power-efficient in order to have longer battery life, and power savings in fixed networks are mainly driven by the desire to control costs. The telecoms industry could easily promote itself as an environmentally sane one, this would lend itself to much criticism, but there is still room for significant improvement in its own behaviour. Each part of the value chain is responsible for important CO2 emissions, and in all cases, much can be done to them. Figure 1 illustrates the responsibility of each link in the European telecommunications value chain for CO2 emissions. As the telecommunications market grows, so will its emissions, unless specific measures are implemented by all players in the carbon chain. Four carbon �hotspots� have been identified where significant CO2 savings can be made: � Datacentres: the vast amounts of IT equipment necessary for operators to run their networks effectively and manage their client-bases are incredibly energy-hungry. IT equipment vendors now offer much greener equipment and overall datacentre management solutions (including cooling and recycling) which could help operators to save substantial money and CO2. � Radio base stations: millions of mobile radio base stations run at full power 24/7 around the world, when there are clear patterns in traffic and power consumption that can easily be adapted to real needs. Equipment vendors are developing smart solutions to save power in the base station, by managing progressive switch-offs, or by radically rethinking base station design to generate huge potential economies. � Fixed network access equipment: The routers, switches and modems oper ated by corporate Internet users are inefficient machines that could be significantly greener if more thought was put into power management. Household broadband modems, built at the lowest possible cost, are true power guzzlers. They too could incorporate simple power management features, but in the meantime, users must take the responsibility to switch off their equipment manually when it is not in use. � Mobile handsets: although they consume very little electric power, mobile phones are a threat to the environment because of their numbers. Each year, millions of phones are produced, and almost as many are disposed of. Produc ing so many handsets is harmful to the environment; particularly as recycling practices are very poor (only 5% of discarded handsets are properly disposed of). Users must slow their renewal rates and ensure that their old equipment is properly recycled. > Read Online

N�451 - ICT Update - 3 January 2009

2009-01-03

Despite an increasingly gloomy economic climate, the ICT market has held up rather well until now, even if several signs of weakness are visible. In the United States, for instance, although the volume of productive investment (excluding ICT) had dropped by close to 20% during the year by Q3 2008, spending on computers and software was still up by 7% over 2007. In the same vein, global semiconductor sales were up 1.6% over the year before by September, spurred by a +9.2% growth in the Asian market. The economic downturn is nevertheless likely to reach the ICT market, not only in businesses but in households as well � especially in those countries where the markets have already reached real maturity. �As with IT�, says Didier Pouillot, in charge of the ICT Observatory for IDATE, �the telecommunications sector is likely to be affected by the current economic crisis � the impact being all the more acute for industry players given that the situation was already strained, with competition and technical progress contributing to the decline in the market�s value for several years now�. Europe�s services markets are among the hardest hit, and some have even fallen into recession. The German market in particular is reporting a 2.4% drop in value in 2007, with the decrease in fixed line revenue that most mature markets are already experiencing being compounded by lesser performances in the mobile services market. The drop in voice call prices over the past two years has been only partially compensated by the substantial rise in traffic and the growing use of non-voice services. The trend carried over into 2008 and could even become more pronounced: Deutsche Telekom reported a 6.8% decrease in revenue in the first half of 2008, while Vodafone suffered a 4.8% drop in its foreign sales in Q2 2008 (its strongest fiscal quarter!). At the same time, the market�s volume continues to increase massively, in terms of both users � going from 91 million mobile customers in mid-2007 to 103.4 million in mid-2008, and from 17.3 million broadband subscribers to 21.5 million during that same period � and even more so in terms of traffic: 20% rise in mobile voice traffic in 2007. On the flipside, the French market remains one of the Old Continent�s most dynamic in terms of value, being sustained by an extremely healthy broadband segment (16.2 million subscribers as of mid-2008, or 18% more than one year earlier, with household penetration now exceeding 50%) and by a mobile segment which, after a sharp dip in 2006 (+1.9%), is back on track (+4.8% in 2007). The French telecom services market thus grew by 3.2% in 2007, followed by a 3.5% increase in the first half of 2008. Growth is expected to be virtually nil in Europe�s five largest markets (Germany, the UK, France, Italy and Spain) in 2008 (+1.7% in 2007), followed by a decline in current value in 2009. The situation is deteriorating on the other side of the Atlantic as well, with telcos reporting a 1.8% drop in their fixed line operations in the first half of the year, and a 6.4% increase in their mobile revenue � which translates into an overall growth rate of 1.9%, compared to over 4% in 2007. In light of the economic situation, growth in the second half of the year will likely have remained meagre, and possibly dropped lower still. Over in Asia, the situation still differs a great deal from country to country � between advanced markets, and Japan in particular, where growth is at a standstill, and the large emerging markets, starting with China and India, where growth remains high. Recent months have nevertheless been marked by a sizeable downturn, particularly in China where the average growth rate for the country�s four main operators dropped by three points in Q3 2008, going from close to 10% in the first half of the year to less than 7% during the last three months! As a result of this slump in the services market, operators are implementing cost-cutting programmes to allow them to maintain their margins, and limiting their investments in particular. For equipment manufacturers this means more pressure on sales, especially given that the handset market (of which mobiles account for 90%) is also suffering a decline after three to four years of double-digit growth. The growth rate for mobile handset sales dropped to 5% in Q3 2008, and is expected to be virtually nil in 2009, which means a decline in value given the still high pressure on prices. The mid-range handset market has been the hardest hit while sales of smartphones in mature markets will continue to climb, as will low-cost handset sales in emerging markets. On the infrastructure equipment front, the impact is particularly acute in Europe where investments, which are more in upgrades than in new builds, can be more easily spread out over time. This particularly concerns ultra high-speed rollouts (FTTx) in Europe, for which operators� enthusiasm seems somewhat dampened, despite the announcements made over the course of 2006 and 2007. As to mobile broadband, a large portion of investments in 3G networks in Europe was made over the past several years and the major operators have either begun to scale back their spending (France Telecom, Deutsche Telekom�) or have recently lowered their investment forecasts (Vodafone). Meanwhile, the markets in the United States and Japan enjoyed a slight uptick, handsets excluded, after having suffered a setback in 2007. And, finally, the outlook for emerging markets is still relatively good. > Read Online > Download the ICT Update Letter

N�450 - Local Authorities & FTTx - 11 December 2008

2008-12-11

The role played by local and regional authorities in FTTx network rollouts varies a great deal from one part of the world to the next. Over the past several years their involvement has been particularly strong in the countries of northern Europe.

Northern Europe and Scandinavia remain the regions where local authorities have had most impact on FTTx network deployment. On other European markets, uncertainty about the maturity of technologies, market potential, financial constraints and regulatory issues (in view of the legitimacy of local authorities to fund networks that, to some degree, compete with those of operators) has somewhat curbed initiatives, even though we are currently witnessing a rise in the number of public FTTx projects, particularly in France.

In the United States, optical fibre has already been deployed for a number of years by some local authorities, but in cities today, Verizon and AT&T are the main investors, rivalling cable operators.

> Read Online

N�449 - e-Paper -

2009-01-02

IDATE�s study analyses the issues surrounding electronic paper technology. It addresses the technology's state-of-the-art and its major vertical markets, notably presenting nearly one hundred projects (in deployment or technical testing). It also analyses the potential for the expansion of the new generation of screens.

The electronic paper (or e-Paper) market is just now taking off, based on a few key applications. Electronic paper, still sometimes called electronic ink, is not really a single technology but a set of display technologies that can be manipulated electronically to reproduce the appearance of paper. e-Paper actually competes with paper (sheets, cardboard) as well as screen technologies (LDC, OLED). The e-Paper market is still small, but should reach 2 billion USD by 2012, really taking off in 2010, based on just a few applications, even though e-Paper could be used in a myriad of sectors.

N�448 - The Sustainable City & ICT - 1 January 2009

2009-01-01

More than half of the world�s population is urban and 80% in Europe. The city is central to the major challenges on the horizon: controlling energy and resource consumption, a changing urban infrastructure and meeting society�s expectations. The sustainable city is an expression of today�s aspirations to rethink urban development in terms of sustainability. The goal of this study is to better understand the role and contribution of ICT in sustainable urban development. How can ICT contribute to the development of sustainable cities? What ICT infrastructure and services can help achieve sustainable urban development? What are some recommended approaches to integrating ICT in a sustainable city project? These are just a few of the key questions examined in this study. �The sustainable city needs ICT to meet its goals and manage its changes�, says Philippe Mathonnet Leader Project of this report, �Getting the sustainable city up and running relies in part on managing, utilizing and sharing various data that work together for urban development that balances the three pillars of sustainability: environment, economy and society�. > Read Online

N�447 - Near Field Communications - 5 December 2008

2008-12-05

NFC is a very recent technology and as a new technology, it needs an infrastructure to work. So far, the process of adaptation has been slow. If, in Asia, there have already been non-standard payment and ticketing schemes in public use, in North America and Europe, the services have more or less only been used in different piloting schemes. The NFC-embedded mobile handsets market is emerging and in 2007, shipments reached 32 millions units, i.e. a 3% penetration. �However,� says Micheal Nique, Project Leader of this report, �following the several NFC projects led by European and American carriers, the drop of NFC chipset cost and the increasing number of NFC enabled handset, the trend of adoption of NFC within handsets should be on the rise from 2010, with a generalization of the technology from 2012. By 2012, penetration should reach around 14% of handsets, with North America and Western Europe being heavily equipped with NFC technology�. > Read Online

N�446 - Internet Video - 2 December 2008

2008-12-02

This report examines the changes that are causing an upheaval of online video distribution and analyses content provider strategies, the evolution of associated costs and revenue and the impact of new TV programme formats. It also provides an operational model that lays the groundwork for discussion on the conditions of profitability for each type of service. �IP video consumption is skyrocketing in all of the major markets covered by this report (USA, the UK and France)�, says Jacques Bajon, Project Leader of the report, �and around the globe. Video will continue to drive the increase in Internet traffic as consumption rises, as TV services migrate to the Web and with the expected improvement in picture quality � the turning point here being the increased consumption of high definition programmes�. > Read Online

N�445 - Mobile Internet Services - 2 December 2008

2008-12-02

The mobile Web services market has become a central preoccupation for Internet players, mobile operators and gear manufacturers, all of which are working to forge a toehold before the market takes off. This report analyzes the market�s growth momentum up to 2012 and the strategies being rolled out by the players, factoring in technological challenges and expected developments in new services adapted to the mobile Internet.

� In 2012, � says Vincent Bonneau, Leader Project of this report and Internet Services Practice Leader at IDATE with annual growth near 30%, Europe is expected to have close to 163 million active mobile Web users, the US nearly 110 million. This would represent 20-30% of all mobile phone users or 25-40% of the population (due to the overpenetration of mobile phones, as high as 140% penetration)�.

> Read online

N�444 - World FTTx market development - 1st December 2008

2008-12-01

The inventory completed by IDATE on 30 June 2008 confirmed that Asia continues to dominate the globe�s ultra-broadband market by a healthy margin, but that Europe and especially North America are making real strides. In Europe, countries such as France and Norway were reporting a sizeable increase in FTTH/B subscribers in the first half of 2008. The globe�s FTTx market, which in-cludes FTTH/B, VDSL and FTTLA, rep-resented 28.2 million subscribers as of 30 June 2008. FTTH and FTTB are still the most prevalent network architec-tures, accounting for more than 90% of the world�s optical fibre subscribers. VDSL does appear to be making strides, and accounted for 4.5% of the FTTx market as of 30 June of this year. This is due in part to the state of the European market, and particularly to Swisscom in the Swiss market and Belgacom in the Belgian market. Meanwhile, over the in the United States, AT&T�s VDSL base continues to grow as well. > Read Online

N�443 - Does the current crisis threaten the Internet of the Future? - 21 November 2008

2008-11-21

in Les Echos, 21 November 2008 The Internet has by now become a regular part of everyday life � to such a degree that we forget the profound transformations that went along with the emergence of the Web, and later the explosion of broadband, the interactivity of social networks and the massive traffic generated by UGC video sites, etc. But this precious momentum that makes the Net a veritable laboratory of innovative uses is a fragile one, and the future of the Internet involves a number of challenges. First it will need to handle the 60% annual rise in traffic driven by the expanding user base and by increasingly bandwidth-hungry applications. The quality of service constraints of the different applications � which demand that the packets that make up a video sequence be sent in the right order, for instance � are not compatible with the Net�s �best effort� approach. The cooperative principles that govern a substantial portion of the interconnection agreements between the elements of the network of networks are undermined by traffic asymmetries. The legal peer-to-peer download protocols, such as Napster, are creating clots in operators� networks. By no mean cataclysmic problems. Countermeasures have been developed to optimise routes, to deliver the most popular content by deploying local servers closer to users, and even to discriminate between packets according to the type of application� Financing the mobile internet and optical fibre access But beyond these issues of day-to-day operations, of the evolution of its protocol and its rules, the internet will face a new series of challenges. Starting with the mobile internet, after exaggerated reports of its birth, the mobile Web has gradually taken shape thanks to cellular networks that deliver speeds comparable to early incarnations of ADSL, to handsets with advanced interfaces and to ultra-portable laptops, combined with more affordable subscription prices. But its development will require more spectrum, considerable investments to deploy new generation wireless technology (4G with more bits per hertz) and stepped-up convergence with fixed broadband networks (which will serve much more numerous micro-stations). This is not a simple equation for operators � and is comparable to the new paradigm that broadband imposed on telcos. We should also add that if, in mature markets, the mobile internet will likely mean the arrival of new applications (geolocated services), in emerging markets it will be the dominant means of accessing the Web. The second expected wave of development will bring with it connections of an infinite nature as it will involve equipping objects (cars, shipping containers, meters, etc.) more and more with RFID tags that will help build an internet of things. Meanwhile, another major telecommunications adventure has begun. ADSL over the telephone network�s copper local loop is gradually revealing its limitations. Half of all phone lines are too long to deliver the 10 Mbps required to route a high quality high-definition TV programme, while leaving enough bandwidth for other applications, hence the need to deploy optical fibre access. Having to contend with powerful cablecos, telcos in the United States have understood this: Verizon has already invested as much as the largest oil companies. The same is true of Japan�s market leader, NTT. Rollouts have begun in Europe and in France. Here too, investments involve major risks as there is no guarantee that consumers will be willing to pay a lot more for a higher speed connection, and it will be difficult for operators to find another product or service that would help shore up their margins� Will these challenges and investments be affected by the crisis? Most analysts view telecom operators� business as a resilient one. They generate a health cash flow and have recurring revenue. They were hit hard by the crisis in 2001-2002 caused by the dotcom and 3G licence bubble which forced all but a very few telcos to tighten up their management and devote a substantial portion of their revenue to restructuring and alleviating their debt. As a result, over the past few weeks, most operators have outperformed market averages, but it still seems hard to believe that the repercussions of the credit crunch will not have an impact on mergers and on investments in the internet of the future. Plus the market�s short-term growth potential is limited: in both Europe and the United States, broadband market growth is down while mobile operators� revenue � which has been the sector�s chief driving force � is not likely to translate into growth over 2% or 3% in Europe�s major markets. Meanwhile, American operators whose mobile business developed later than in Europe, have enjoyed double-digit growth up until this year and, on the whole, have invested more in their fixed and mobile networks. But cellular market growth will take a serious downturn this year � in other words, it is right at the time when operators should be investing more to prepare for a new growth cycle that investments will likely be scaled back. It also seems likely that the overall deterioration of the economy, combined with the housing crisis, will have an impact on households� and businesses� consumption. We have already seen an acceleration in the declining number of fixed phone lines in the US (9% last quarter, on an annual basis) � with those consumers forced to make a choice between landline and mobile likely to opt for the latter. What to expect from public authorities? This is the question that dominated the round table in New York in late October that was organised by CITI (Columbia University) and IDATE. At first glance, nothing really new was said. The president of Verizon reiterated that regulation could only be viewed as an impediment to investors. This statement was met with some amusement from the Europeans, as Verizon and AT&T have, in fact, been freed from any obligations to open up their infrastructure to the competition, whether copper local loop or new FTTx network. As to antitrust policies, they did nothing to stop a spectacular series of mergers and acquisitions which led to the current telecommunications market of which two thirds is controlled by only four carriers. It is nevertheless true that telcos are having to contend with powerful cable companies which have been stealing away broadband and telephone market share for some time. In Europe, where cable does not have that kind of power, operators have accepted the principle of opening up their local loop to the competition, but they have not accepted that their investments in fibre be subject to the same unbundling obligations as the copper local loop � something that Brussels has not imposed, per se� But the real news came from elsewhere! And what if what has just happened in the financial sector were to affect the mindset of the telecom and internet sector. Nobel Prize winning economist Joseph Stiglitz drew a lengthy parallel with finance, reminding the audience how he had repudiated opposition to regulation in the past, and viewed soft regulation and self-regulation as oxymorons. It was Stiglitz�s view that, like the financial sector, telecommunications are dominated by externalities, �club� effects that require a regulator�s intervention and vigorous antitrust measures, more so than other sectors. His talk left the audience baffled, even if it did encourage the other America to remember the dangers of the digital divide for ultra-fast broadband, and Barak Obama�s position on increasing regulation that would ensure net neutrality. As a preliminary conclusion, it is certainly important to take better account of the cyclical nature of this industry, especially when accompanied by a financial and economic crisis. The Internet of the Future is of sufficient import to our economies and our societies that, as Professor Eli Noam said in his call for a regulatory overhaul ('Policy 3.0'), what is needed are provisions adapted to market realities and careful identification of the various options (fiscal incentives, more efficient management of ducts and cable paths, support for rural zones, etc.) capable of stimulating investment. Yves GASSOT CEO, IDATE

N�442 - DigiWorld Summit 2008, F. Lorentz - 20 November 2008

2008-11-20

In this time of crisis, the DigiWorld Summit comes modestly on the heels of the G20. As we all know, every crisis constitutes both a threat and an opportunity. The threat this time around is one of the most severe that we have seen since the second World War. But it also opens up the possibility of reshuffling the deck and inventing new growth models. It seems to me that the role of the digital world in this new order should be at the heart of our discussions over the next two days. > PWP and Video Online But, first, a word about the crisis. I�m not a soothsayer but it does appear that all the elements point to a long and deep crisis ahead. The model on which we built our growth over the past 10 years was founded on artificial consumption stimulated by accumulated debt, on unbridled inflation of assets and the creation of false value. What we�re experiencing now is a brutal return to reality. In some respects, the digital world seems rather well prepared to weather the storm ahead. The burst of the tech bubble back in 2001 forced the sector�s leading companies to purge and pare down their structures and finances drastically. They helped limit over-exuberant speculation over fuzzy concepts, shaky technologies and adventurous teams. Even so, we will not be spared the consequences of the loss of trust that is inflating the effects of the financial crisis, and weighing as much on consumer purchasing power as business financing. Predictions now are that, in 2009, the volume of the world mobile phone market could shrink by 1% to 2%, and even more in value. Ad-funded models are threatened by advertisers� tightened budgets. Investors are concentrating on businesses that are already profitable, and they are no longer interested in audience figures but the ability to monetise. There are already signs of panic in Silicone Valley, which will be quick to amplify market fluctuations. This crisis could be a long one, lasting a year, a year and a half, two years? Nobody knows. But what does appear certain is that the readjustments that will be needed will go well beyond just reining in hedge funds, rating agencies and, more generally, players from the financial world. What we have is a need to establish new balances between the desire for short-term financial or budgetary gains and the need for long-term investments, between free market and regulation, between the economic areas of East and West. In this depressing environment and with an uncertain future ahead, IDATE and I are more certain than ever that the technologies and services of the digital world will be at the heart of the restructuring that�s getting underway and of the recovery when it comes. The healthy momentum of Web 2.0 is proof of technologies� capacity to spur economic and social change. Social networks, mass individualisation, the self- and interactive expression of the blogosphere, collective creativity� all are having a profound influence on behaviour, consumption habits, working habits and business models. The role that the Internet played in the presidential election in the US and the success of Barack Obama provided a dazzling illustration of the changes at work. This is not to say that there has not been collateral damage. The difficulties that the media, and particularly print media, are having in undertaking the needed changes offer a particularly vivid example: of the top 10 American news sites, only one belongs to a member of the traditional media, namely the New York Times. I am convinced that these changes will only get bigger and faster, spurred by a major technological leap forward, following through on those that brought us big computers, mini-computers, PCs and PCs connected to the Web. This new cycle will not be confined to the Internet, but will pervade the entire digital universe and combine mobile access to the Net with the exponential increase in the power and efficiency of computing tools via cloud computing. Thanks to the performance delivered by 3G, 3.5G and soon 4G, the mobile Internet opens up an unlimited arena of new uses that incorporate images, location-based applications and social networking. The mobile phone is becoming a multimedia device that�s cheaper, faster and easier to use than a micro-computer, and that you can carry it around in your pocket. It offers billions of users around the globe interactive access to a stunning array of information, services and connections. At the same time, cloud computing, which Google, Amazon and others have put into place, makes it possible to harness the processing and storage capabilities of innumerable computers and their peripherals on a planetary scale. Combined with the development of search tools and online applications, what is taking shape is an extreme concentration of storage, data and knowledge exploitation capabilities, ushering us into the petabyte age. As foreshadowed by the recent project launched by the NSF, interconnecting 16,000 computers to simulate the human brain, this new stage leads to an astonishingly more effective use of the global informational capital and to the development of radically new tools and methods for mastering the complexity. The Internet of things, or M2M, will no doubt constitute an additional element in this new stage of the game, even if standardisation issues and consumer reluctance could hamper its development in some areas. One of the major features of this new cycle is that it is consumer driven: consumer traffic on the Web exceeded business traffic in 2008 and predictions are that, by 2010, individual users will account for 70% of the digital universe. This growing dependence on consumers does create an added vulnerability, but it is also a major asset. First, because the global market for first equipment is far from saturated, with emerging markets still constituting huge growth pools. In the more mature markets, having access to communications and the services delivered by the Web is now perceived as a priority. Proof of this can be found in the lack of elasticity with respect to income: in France, for instance, people spend an average 8% of their income on digital products and services, while those who earn under �15,000 spend 17%. Last but not least, digital world consumers are becoming producers more and more � making active and independent contributions to the ebb and flow, to the Internet�s dynamic and the exponential growth of interacting streams. This is particularly true of �digital natives�, those generations who have grown up with the Internet as a natural way of accessing knowledge, a preferred means of socialising and an unparalleled playground. Images are at the heart of everything they do, thanks to improved definition and the ability to access them from any device, whether mobile and not. These consumer-producers are highly demanding and highly creative, continually dreaming up new applications and contributing to the ongoing stream of new ideas, services and business models. Even if it cannot all be monetised, this momentum is nevertheless contributing to the roughly 60% annual increase in traffic on these networks. The new cycle of information and communication services and technologies clearly represents a huge surge of value creation and growth. Of course, we have to hope that the credit crunch, the paralysis of the stock markets and the preference for liquidity do not impede the ability to capitalise on this momentum. Infrastructure and innovation are particularly vulnerable in the current financial juncture. The capacity of communication networks needs to keep up with the exponential rise in consumption and traffic. The growing ubiquity of high-definition images, and of 3D ones down the road, make ultra-fast broadband a necessity. Just as a reminder: in France only 50% of ADSL lines make it possible to achieve a speed of 10 Mb/s, which means that we have a massive investment ahead of us which, according to IDATE, for the whole of Europe could reach as much as 300 billion euros. In the current climate, the ability to earn a return on this investment could seem meagre, too far off or too risky for the companies and the investors struggling to raise capital. There is no guarantee that competition, which proved an extremely efficient engine for putting our country among the leading ADSL populations, will be enough to create the needed momentum. There has been a singular increase in the responsibilities put on European, national and local regulators and public authorities. As concerns France, the directions taken by telecom regulator ARCEP, the measures contained in the Law on modernising the economy and Eric Besson�s action plan are steps in the right direction. But will they be enough? Will their implementation be in sync with the tightened belts and resources that the situation has forced upon us? Another area that is being threatened are the innovation pools, potential creators of wealth, contained in the digital universe. While these innovations are often technological in nature, they can also concern marketing, distribution modes or business models. They know no frontiers and the best among them can find a market immediately, or create new behaviour patterns on a global scale. Their promoters are driven by creativity and the desire to innovate, precious commodities in a world of doubt. They have become more numerous and some have matured from the lessons learned by the burst of the high tech bubble. This very positive evolution is due, in part, to the measures taken in France and Europe over the past 10 to 15 years, working to provide financing and support. It has also been helped by major corporations, equipment manufacturers, content providers and operators which became aware of the common interest of developing ecosystems that could enhance and stimulate their own capacity to innovate. These key players in the digital dynamic, these creators of the Dibcoms, the Business Objects, the PriceMinisters and, why not, the Amazons and Googles of the future, could be among the victims of a crisis that discourages risk-taking. Of course it is up to them to rise to the occasion, to overcome the increased but legitimate demands of return on investment and customer satisfaction. But it is up to public authorities to ensure that, more than ever, the fiscal, financial and regulatory environment provides support for those who have the courage to innovate and boldly go. The Internet and the digital arena that it encompasses are at the heart of the new world order now taking shape. It enables the exponential growth of information accessible to everyone, anywhere, anytime. And now more than ever before the challenge is to transform this informational growth into economic growth and an improved standard of living. The technological cycle we have entered into, of the mobile Internet and cloud computing, offers us an opportunity. The crisis could, paradoxically, accelerate the changes at work, spur the use of new generations of tools and applications, stimulate the emergence of new behaviour patterns and business models. Facebook, Meetic, Dizzer, Wikipedia, and Dailymotion all provide a partial response to the individual and collective expectations that have been exacerbated by the economic woes and fears about the future. What we call the digital economy cannot replace the traditional economy, any more than the virtual world can replace the real world. But it is upsetting existing balances, opening up new frontiers and inviting initiative. France has made real progress in its adoption of and immersion in the digital universe. But it is still far from being a global leader if the rankings of the World Economic Forum are any measure. Aside from the brilliant exceptions in the northern part of our continent, the whole of Europe needs to work harder to capitalise on the opportunities opened up by this digital new deal. And so it is particularly serendipitous to have with us our Korean friends who can share the lessons of their particularly rich experiences in these areas. I would like to extend my heartfelt thanks to them for being here today, and for sharing their knowledge with us. Francis LORENTZ Chairman, IDATE

N�441 - New Communication Trends - 7 November 2008

2008-11-07

Use-IT Europe - Survey among young early adopters IDATE has released the fifth edition of its market report devoted to analysing consumers� ICT consumption habits � published as part of its Use-IT programme. Based on an exclusive survey of over 1,500 young Internet users (18 to 25 years old) in Europe, the report provides forecasts on future communication trends as these young consumers enter the workforce. �For over five years now, IDATE has been developing a unique analysis of new convergent application consumption patterns,� reports Sophie PERNET-LUBRANO, the Use-IT Programme�s Project Manager. �This year, we wanted to take a closer look at the habits of young consumers in Europe to be able to assess how their new behaviour patterns will spread to the rest of the market.� Based on an exclusive survey, this report analyses the different forms of communication being used, and the various choices and trade-offs involved. Among the many findings in this report is the emergence of several clear trends: � �Standard� mobile configuration: mobile phone + laptop computer � Voice still the dominant communication mode, as mobile calls are replacing landline calls � New forms of communication: wall-to-wall communication, micro-blogging, ... > Read on line

N�440 - Mobile TV Solutions - 7 October 2008

2008-10-07

The Mobile TV market is a myriad of consolidation, and solution vendors are running hard to adapt. Their services can be based on linear TV channels, on-demand contents or rich media applications. The delivery vector could be existing cellular mobile networks, dedicated broadcast solutions or alternative provisioning, notably through open systems. And they have to deal with a variety of standards and formats. No wonder, then, that mobile video delivery solutions often seem closer to best-of breeds than uncluttered end-to-end kits. It is indeed a complex ecosystem, occupied by wary Tier 1 vendors of equipment and solutions along with specialized companies and new entrants. �The delivery of a mobile video content, with assurance of good quality experience, involves technologies from both the telecom world (for the network) and the content world (for content technology)�, says Jacques BAJON, Project Leader of this report, �It is still early days for mobile TV delivery solutions. Building partnerships is often necessary for creating solutions in a very fragmented market and still complex ecosystem�. This report describes the technical options available for mobile video delivery, and the challenges in the delivery chain. Focusing on the Content Delivery Solutions/platform, it presents an overview of key player positioning and major world-wide mobile TV deployments and contracts. A discussion on smoothening the path to a surer market, along with profiles of upcoming delivery solutions and services, completes a full, if complex, picture. > Read online

N�439 - Managed Services - 9 october 2008

2008-10-09

This market report carried out by IDATE seeks to answer the following questions: What are managed services? Why are managed services gaining momentum? What are the different business-models existing for Managed Services? Who is the best positioned to address the Managed Services market and each segment of the market? �In a fast-moving environment and to counter fierce competition from new entrants�, says Mathieu LIMOUSI, Project Leader of this report, �telecommunications service providers have to transform their traditional business models by focusing on customer-oriented activities. There has been a switch in carriers� core skills: Service Providers regard Customer Relationship Management, Customer retention, and other marketing activities as their new core activities. To be able to allocate sufficient resources to these activities, carriers outsource non-value added operations�. Managed Services can be described as a service which is process-based and which generates recurring opportunities. These Managed Services differ from traditional services which are product-dependent or project-based. They encompass a variety of outsourcing activities from Network outsourcing to Hosted Applications through Middleware outsourcing. > Read on line

N�438 - Data Roaming - 8 October 2008

2008-10-08

�With the rapid deployment of 3G / 3.5G networks and mobile devices, and the decrease in mobile data tariffs, a rapid growth of mobile data services is expected in the coming years.� says Julien Salanave, Telecom Managing Director at IDATE, �Data roaming represents between 6% and 10% of mobile data services revenues, i.e. around 2.3 billion Euros for E.U. countries in 2008, two-thirds of which is GPRS / UMTS traffic. IDATE forecasts a 47% Compound Annual Growth Rate (CAGR) for data roaming traffic from 2007 to 2012.� This new report presents the trends of the emerging market of international roaming for data services on GSM / 3G mobile networks, the services and tariffs offered by European operators and their evolution. It also analyses the technology involved to provide data roaming services and the relations between the different players: mobile network operators, international transit carriers and clearing houses. > Read on line

N�437 - NGA Regulation - 7 Octobert 2008

2008-10-07

This IDATE report examines the challenges that arise from the transition from PSTN to Next Generation Access Networks. The study illustrates different types of fibre-based network architecture and their specific implications in the competition arena. The issues identified are further presented in a European regulatory context. �Next Generation Access networks are the biggest regulatory challenge in the wireline industry since market liberalisation in 1998� says Christoph PENNINGS, the report�s project manager �In the medium-term timeline, regardless of which type of NGA one considers, competitive rollout of several infrastructures in the same region will be limited to areas that are densely populated and ideally have some kind of ducts readily available. In other areas, competition will need to take place at bitstream level.� > Read online

N�436 - LBS - Location Based Services - 3 0ctober 2008

2008-10-03

The LBS (Location-Based Services) market is increasingly successful, driven by navigation applications and equipment: the selection of services available is growing and navigation is paired with local searches. However, LBS players are often confronted with the fragility of their business models and must face market consolidation. According to Val�rie Chaillou, the Project Manager for the study, "With sales of about 175 million EUR in Western Europe expected for 2008, the LBS market will experience rapid growth and may exceed 560 million EUR by 2011." This new IDATE study presents the different positioning technologies, including GPS, Cell-ID, and triangulation. Starting with a detailed study of the types of services (navigation, locating people or vehicles, local information and services, safety and emergency services, community services, billing), it analyzes the organization of the market and the strengths and weaknesses of its players: PND manufacturers, LBS specialists, mobile phone players (manufacturers and operators). This is also an opportunity to consider the stakes of the Galileo project, whose arrival, late though it may be, is likely to impact a still fragile ecosystem. > Read on line

N�435 - Broadcast Mobile TV - 2 October 2008

2008-10-02

While the number of effective launches and announced broadcast mobile TV solutions is multiplying, great uncertainty still surrounds the business model and expectations for profitability from this type of service. Partisans of both free and fee-based solutions are putting up their arguments, while each player�s role in the value chain (whether a TV channel or mobile operator, etc.) has yet to be defined. "With this new report", states Sophie Girieud, its Project Leader, "we are looking to provide all stakeholder-players in the development of broadcast mobile television with a solid base of analysis that uses detailed modelling for the operating accounts of operators choosing to launch such a service. Our findings lead us to the conclusion that while a basic package costing more than an average 5-6 EUR per month has little chance of attracting enough subscribers to generate revenues that outweigh the operating costs, a free service aimed at drawing a wide audience to fund itself with advertising, will also be unable, in the medium term, to make sufficient profit to ensure service durability�. > Read on line

N�434 - The Geoweb and Hyper-local Internet Markets - 29 September 2009

2008-09-29

This new IDATE report provides an overview of the geospatial internet market, commonly referred to as the geoweb: supplying an in-depth analysis of the value chain for online mapping services, a presentation of the main applications emerging around the geoweb, the strategies of the market players, along with analysis of the possible means of monetising these services and of the development outlook for the geoweb. �As the internet becomes more and more local�, says Maxime Baudry, the report�s project manager �we are seeing a growing body of digital data being attached to actual locations, the link being provided by geographical coordinates, and made legible by mapping interfaces. Roaming and mobile applications only help spur this hyper-local trend, sustained by users� need to obtain information that corresponds the where they are at any given moment." > Read on line

N�432 - Radio spectrum - 22 September 2008

2008-09-22

This new IDATE report focuses on three main topics: the outcome of the World Radio communication Conference (WRC-07), the digital dividend and the new frequency bands and their associated valuation. According to Pierre Carbonne, Project leader of this report, "The explosive growth of mobile data services will impact spectrum usage and valuation in the coming years". > Read on line

N�431 - Online business services - 22 September 2008

2008-09-22

The software industry is in the throes of deep-seated change, with the looming prospect of a possible end to the dominance of the business model based on licence sales and the emergence of business applications services that can be accessed online. According to Philippe Mathonnet, Project leader of this report, "the SaaS model has become a reality in businesses. In Europe, the ASP/SaaS market is expected to grow at an annual rate of 30% to reach 3.3 billion Euros by 2011, while annual growth forecasts for the classic software publishing market (based on licensing) are between 5% and 6%. This new IDATE market report examines the ASP/SaaS/Cloud Computing phenomenon: solutions typology, advantages of SaaS solutions, different business models, main player strategies and a Market outlook up to 2011. > Read on line

N�430 - Casual Gaming - 10 September 2008

2008-09-10

A market worth 9.2 billion euros in 2008, or a third of the video game industry�s worldwide revenue Casual gaming is triggering a revolution in the core video game industry, as well as in the sectors of edugaming, communication applications and media applications. It offers new sources of revenue with a much larger gamer base than that of the hardcore gaming sector. According to Project leader, Laurent Michaud, �the casual gaming sector � made up of content created by casual game companies and accounting for a portion of traditional video game publishers� catalogues � will be worth 9.2 billion euros at the end of 2008, around one third of the entire worldwide industry�s sales�. This new IDATE market report examines the casual gaming phenomenon (consumption, marketing and content), analyses how the sector is organised (key players, value chain, business models) and provides detailed forecasts up to 2012 for the globe�s video game market (issues and outlook) as a whole, and for casual games: on disc for PC, online PC games, mobile games, handheld console games and home console games. > Read on line

N�429 - Web 2.0 and social networking - 28 august 2008

2008-08-28

This report provides analysis of the recent outstanding phenomena on the web, namely video sharing and social networks whose community aspects are spreading to most corners of the Internet, well beyond the confines of Web 2.0. It provides details on current usage levels, key Web 1.0 and 2.0 player strategies, pioneer initiatives to monetise the community and the development of a new paradigm, based on the social graph and interoperability tools, which will likely have an impact on Internet services across the board. Web 2.0: massive usage and new giants emerging The term Web 2.0 does not have any single definition but, in its social sense, it refers to applications that are based on the principles of collaboration and sharing information and content (in many cases through virtual communities), putting users and social interaction at the heart of it all. � Growing at a tremendous rate, the main poles of attraction on Web 2.0 are social networks, whose top two players worldwide are MySpace and Facebook, with a user base that now spans across the generations. The most popular social networks nevertheless vary in the different corners of the globe, and the two titans have serious challengers that enjoy tremendous popularity in certain parts of the world. � The veteran internet giants caught the Web 2.0 train while it was already on the move. Having missed out on pioneering the phenomenon, they made up for lost time through a series of takeovers and partnerships, gradually forging themselves a place in the participatory Web, and keeping up with the latest trends. � Icons of the second generation, MySpace and Facebook are thus proving serious competitors for older players, as their success is spilling out well beyond the 2.0 sphere and putting them at the top of traffic rankings in the United States and other countries around the globe, notably in Europe. Read on line �

N�428 - Ultra-Broadband - 9 september 2008

2008-09-09

After years of talk over the various technologies and architectures, ultra-broadband (FTTH/B and VDSL combined) is expected to experience steady growth in the coming years, to reach close to 128 million subscribers around the globe by 2013. Naturally, the rate of progress will not be the same across the board, as each national market will be shaped by the country�s intrinsic features and its players. Roland Montagne, Head of the Broadband Practice at IDATE, adds �Growth of the number of FTTH/B and VDSL subscribers around the world has increased significantly in recent months, with forecasts up to 2013 indicating a steady increase across the globe for all ultra-broadband systems�. >Read on line World FTTx Markets These are just a few of the conclusions drawn from the ongoing monitoring of the globe�s ultra-broadband markets by IDATE�s FTTx Watch Service: � Database: a unique, continually updated FTTx market database, providing market data by country and by technology, along with forecasts for the coming months and years � Insights: Monthly views on key issues � Market reports: Quarterly � Analyst Access: consulting hours, analyst briefs, presentations

N�427 - TV distribution in Europe and North Africa - 25 august 2008

2008-08-25

This report identifies the major changes currently taking place in the TV broadcasting market which, over time, risk eroding satellite�s share of the market. Such erosion will occur either through mounting competition from terrestrial technologies or via the emergence of new TV viewing habits, which are likely to call into question the traditional model of mass television broadcasting in the long term. Based on an analysis of the main issues at stake in the TV broadcasting market, the report identifies the main areas in which satellite can further expand and claims which market positions hold the greatest long-term potential in the different geographical zones targeted. Five-year market forecasts on the satellite capacity required to broadcast TV over the zone are also provided. Changes likely to affect the traditional TV broadcasting model New ITC usage, especially the Internet, is gradually changing the order of things: the shackles of traditional television are now being shaken off, with viewers seeking to break out of the broadcasting model and its inherent passive viewing. Their first preference is for time-shifting, choosing precisely when they view content, and for younger viewers, in particular, VOD, personalised content and even interactivity (when a direct extension of the programme), are now what viewers aspire to. Younger people are spending less time watching live TV broadcasts, and more time viewing recorded programmes and using the Internet. Aware of the changes in TV programme viewing habits, channels and packages are striving to tailor their solutions to meet viewers� expectations. This primarily involves increasing the number of channels they use to distribute programmes. Most have thus adopted a multiple media approach, with conventional TV still the main vehicle for airing programmes, while Internet becomes a more attractive medium for exposing consumers to content. Read on line �

N�425 - New Music Markets - 21 August 2008

2008-08-21

The various segments of the music market are evolving under the impact of the shift to digital formats. This study analyzes the various online music distribution models and the associated pricing and business models using case studies. It describes the evolution in the music industry, both upstream (creating and producing music) and downstream (distribution, tie-in merchandise, live performances), and establishes the conditions for a new economic equilibrium. Finally, a five-year market forecast is provided. The decline of the CD market in the context of the global music market The global music market represents 67 billion USD, divided into three segments: recorded music (33.5 billion USD), live performances (25.6 billion USD), and music publishing (8 billion USD). Directly or indirectly, the shift to digital formats affects all of these segments: � The partial shift from physical sales to digital music sales impacts the associated revenue from music publishing; � The increase in the number of Internet distribution services implies an increase in corresponding publishing rights; � The decline in the global recorded music market increases the importance concerts hold in the music economy. Read on line �

N�423 - Mobile Broadband - 19 August 2008

2008-08-19

Telecommunications equipment suppliers and operators see in mobile broadband the growth driver that is indispensable for their expansion. But implementing data services on mobile networks poses a series of both technical and economic problems for players in the ecosystem. This study analyses the issues in mobile broadband for these players, notably with services aimed at moving fixed Internet into a mobile environment. Explosion in capacity needs and data traffic Operators� revenue from data services is growing rapidly. But the growth in capacity needs and data traffic are even stronger. There are several reasons for this: � increase in the number of mobile subscribers, � increase in the share of 3G subscribers, � specific impact of mobile Internet access services for lap top computers. Operators must provision an average of 40 kbps downstream in peak times for a user who connects using his lap top computer on an HSDPA network, but only 0.3 kbps for a user connecting using a telephone type terminal. In fact, operators who have developed mobile Internet access offers note that: � mobile data traffic is increasing rapidly, even more so when mobile Internet access services for lap tops are expanded. � Traffic generated from computers represents most of the mobile data traffic when attractive offers are available. � The traffic profile generated by computers much larger than that generated by mobile telephones or smartphones. Equipment suppliers and operators expect sustained and consistent growth in mobile data traffic in the years to come. Read on line �

N�420 - Evolution of Web Architecture - 1st August 2008

2008-08-01

CDN, P2P: an estimated market of US$ 3.3 billion by 2010 Current trends in Web architecture provide the basis for Internet service players to leverage Internet infrastructure to deliver powerful new services. This report analyses traffic trends and the new challenges of video, APIs and Web 2.0 and reviews the datacentre strategies of Internet giants, their offerings now accessible to third parties. It examines how the evolving CDN and P2P markets are enabling new services for smaller Web players, and the initial telco reactions to traffic growth. Traffic management: a major issue to providing scalable services on the Internet Traffic is often taken for granted for Web services, but ensuring a decent quality of service and keeping bandwidth costs as low as possible are still major concerns. � Quality of service can be affected by two major, concurrent, dynamics. The first issue coming to mind is, logically, the overall traffic volume. A Web server can only handle requests up to a certain threshold of bandwidth. The second issue is the number of simultaneous connections that can max out the Web server, even with limited volume of traffic per request. While standard partitioning of the servers can help to manage the load, it is only a very rudimentary answer to these two issues. It will remain an inefficient option for Websites with huge growth. � Beyond those technical aspects, traffic is also a financial issue. Contrary to general belief, IP traffic is not free, even though typical transit prices have decreased sharply in recent years and are now very low (10 USD per Mbps on some routes). The rapid development of the Internet has been thanks to peering agreements, in which players exchange traffic between their autonomous systems, for free. Even peering is not really free, as both parties have to install and operate the servers necessary to handle peered traffic. Some traffic, such as video, may also not benefit from peering agreements, as it is too asymmetrical to be included. � Web players with huge amounts of traffic are facing these technical and/or financial issues. They then have to take steps to make sure they can scale in a context of fast growth of usage, but often limited revenues -- there is almost always a time gap on the Web between service consumption and its monetization, especially with advertising. Read on line �

N�418 - Serious Games - 30 june 2008

2008-06-30

Advergaming, edugaming, training and more: and accounting for nearly a quarter of the video game industry already

By analysing in detail the characteristics, uses and different genres of serious game, thii study outlines the challenges involved with the design, development and distribution of various types of title. Similarly, the report examines the outlook for the industry and its probable growth drivers.

The serious gaming market is of considerable importance. As the link between traditional video games and practical software, serious games offer a genuine opportunity to develop a sector that is all too often considered a niche. Furthermore, they offer huge potential for growth: "In 2008,� comments Laurent Michaud, project leader of the report, �the number of potential users worldwide stands between 600 million and one billion.� This number includes purchasers and non purchasers of video games, and though the under 25s represent the key target audience, serious games are aimed at all age groups.

N�416 - Smart machines and connected objects - 11 june 2008

2008-06-11

This report addresses the next major disruption for the Internet, coming from the potential connection of billions of machines (with M2M) and trillions of objects (with RFID and the Internet of things). It assesses the key technologies to accelerate such a development, the applications that are or will be the most relevant in a connected mode and the early positioning of the industry players on this promising market.

"There are countless opportunities in the markets of both M2M and the Internet of Things" says Vincent BONNEAU, Project manager of this report, "initially in terms of cost reduction, and then through the emergence of new services, especially around improved customer service."

Internet is gaining a new life with billions of machines connected
The Machine-to-Machine (M2M) revolution has meant that machines in communication with each other become just a bit more intelligent. Humans are no longer alone in being able to connect to the Internet: now any kind of machine can do so.

� It is a sizeable market indeed, with more than 2 billion potential machines in the world, 630 million of them in Europe. Thus far, it has developed primarily in the fields of internal, wired applications, but the most dynamic surge will come from wireless M2M where cellular, satellite and other solutions are opening up new, otherwise impossible opportunities for roaming modes and in open environments.

� In 2007, the cellular M2M market was worth EUR 6 billion in Western Europe, comprising more than 11 million active modules. Its rapid growth rate will sweep it to 61 million modules by 2012, worth some EUR 38.5 billion.

� The market will develop in large-scale vertical segments, once the proper sector organisations have been put in place (standardisation, ecosystem).

N�415 - Use-IT 2008 - 9 june 2008

2008-06-09

IDATE has published the 4th edition nof its reports devoted to analysing consumer behaviour with respect to ICT services. Drawing on an exclusive survey of over 1,000 French house-holds, this report delivers consumer demand modelling based on IDATE analyst forecasts up to 2011.

Household ICT budgets stagnating, though vary depending on the service
The average household ICT budget (mobile phone, landline, internet, music, video, video games) is esti-mated at 113 EUR, including VAT, a month, and not expected to evolve a great deal. "The ICT services mar-ket will grow by 1.8% a year, on average, at current prices" says Sophie PERNET-LUBRANO, Head of pro-ject of the Use-IT Programme "to reach 121 EUR per household in 2011, with over half of the budget going to mobile services".

� Mobiles account for around half the family budget, as many families have more than one mobile � a pro-portion that is expected to increase slightly as data services become more popular.

� The other growth markets are pay-TV and internet access, thanks to an expanding customer base.

� Other markets are on the decline, however, notably fixed calling as VoIP becomes increasingly popular.

� Video (DVD and VOD) and music markets are still being undermined by illegal downloads, and their share of household budgets is expected to go on shrinking.

The future of these markets will be shaped by changes in distribution models: with new channels (online, on mobiles), new vendors (ISPs, top brands) and new price plans based on global licensing model.

Key trends in the Digital Home
� The digital home: spurring chan-ges in the TV market
� Home networks: still being cob-bled together
� Internet: the quiet revolution
� Entertainment on the web still youth but not community-centric
� The PC has not replaced the TV, but couch potatoes are becoming more interactive
� Senior citizens and pre-teens: partially untapped mobile markets
� Data services market reacting well to unlimited flat rates

N�414 - The day after switch-off - 29 may 2008

2008-05-29

While debates intensify on using the digital dividend, with the switch-off due date approaching in several countries, this IDATE report focuses on the opportunities that these additional resources could offer to terrestrial TV channel producers to establish their strategic position, strengthen their competitiveness and grow their revenue, in an increasingly competitive environment.

Based on an overview of new TV services introduced on the digital terrestrial network in Europe, the United States and Japan � services that could be greatly expanded using frequencies released by ending analogue signals -, IDATE assesses the terrestrial network�s role and advantages, just as it sees growing competitive offers from alternate broadcasting infrastructure. IDATE then analyses foreseeable strategic options for DTT players to optimise using the digital dividend in a continuously expanding audiovisual scene.

"Using frequencies from the digital dividend that will be allocated to the audiovisual sector", said Sophie GIRIEUD, Project Leader of this report, "television services which were previously unavailable or partially existent on the terrestrial network will be able to expand on DTT". The report identifies several of these services: free or paid multi-channel, Pay-per-view (PPV), VOD, HD, mobile TV and even interactive TV.

N�412 - The future of the press - 15 may 2008

2008-05-15

IDATE provides in this new report a figure-backed examination of the press�s migration to the Web, analyses the lessons learned so far and how the written press in Europe and the United States is adapting to the transition, and identifies the options available to print publications.
"Rising revenues from online advertising are failing to offset the fall in revenues from newspapers� print editions: press agencies, aggregators and other media are capturing a substantial portion of Web migration" says Gilles Fontaine, the report project manager.

Limitations of the paywall model
The paywall model is restricted to a minimum amount of premium content (like the Wall Street Journal). A switch to advertising financing is thus unavoidable for most press websites (such as the New York Times).
The market potential for selling news direct to new aggregators (Business to Business strategy) is limited, confined to just some content distributed by syndicators on the business market.
Print publications, which depend on search engine Web listings, cannot impose payment for their news. Furthermore, there is a rising tendency for major Web aggregators to join forces with newspapers to sell advertising space (Google Print Ads).

N�410 - VoIP in the French SME market - 14 may 2008

2008-05-14

At the start of 2008, 46% of SMEs had subscribed to VoIP

VoIP is enjoying swift take-up amongst small and medium businesses in France: at the start of 2008, 46% of French SMEs had subscribed to a fixed telephony service based on VoIP, compared to only 7% in 2006.

"IDATE forecasts that, by 2011, 75% of phone lines will operate over IP ports and data connections, with the remaining 25% still via TDM " analyses Guillaume Goudard, project leader.

IDATE provides an inventory of available VoIP solutions, looks at the offers and player strategies, and examines the state of demand through quantitative and qualitative analysis, in addition to exploring the market outlook for both supply and demand.

N�409 - Functional separation in telecoms - 8 april 2008

2008-04-08

IDATE, the leading European telecoms market research company, contributes to the lively regulatory debate in Europe with an empirical assessment of functional separation involving:

� an in-depth review of the (few) existing examples in the UK and Australia and the (several) projects under consideration in New Zealand, Italy and Sweden for functional separation in telecoms,

� an initial impact assessment on the functional separation case in the UK which has now been operational for two years and

� a comparison with the lessons learned from older examples of functional and structural separation in other network industries.

1. Functional separation cannot be held as a panacea for solving the telecoms industry woes and holds the risk of causing more damages than the illnesses it aims to cure. Functional separation has been invoked to address very distinct and non comparable situations, some of which have elsewhere been efficiently tackled through less radical and irreversible approaches.

There is no unique coherent set of market and competition conditions under which functional separation has been implemented or considered, raising questions as to which disease exactly is the cure suited for. For lack of a clear answer to this question, functional separation has been held by some as a panacea for any competition-related disease. Nevertheless, the market issues (e.g. modest unbundling in the UK) that functional separation has been called upon to solve in certain countries have in other geographies been addressed through other less radical regulatory tools.
In our view, this is the root cause behind several national regulators and directorates of the European Commission publicly voicing concerns, prior to the final proposal, as to the validity of the functional separation solution in telecoms, pointing to its significant implementation costs, irreversible and potentially disproportionate effects for the problem it is aiming to solve compared to less radical and intrusive, yet result-proven approaches of the currently available remedies.

2. An effective functional separation requires consent from the separated company only achievable under specific circumstances in a "win-win" deal with the regulator. Conversely, a unilaterally imposed functional separation is hardly enforceable and can lead to lasting standoff situations damaging the industry as a whole.

Because functional separation cannot exclusively be enforced through adhoc external regulatory scrutiny but requires proper internal procedures and more importantly execution to the letter and the spirit from the separated entities, it can only truly work through an active consent from, and with worthwhile incentives for, the parties involved. This has been the case of most cases of functional separation considered in telecoms so far which have moved forward beyond initial
declarations. Indeed, functional separation can be acceptable to some incumbent operators in certain sets of circumstances because it can be a catalyst for a transformation of their operations and thereby be an integral part of a corporate strategy.

We nevertheless observe that the main rationale behind voluntary functional separation being the hope for superior shareholder value creation, it is most likely to be an interim solution towards a more radical separation of activities decided by an operator making an industrial bet on a sustainable split between pipes and content. This unstable and transitory dimension of functional separation is evidenced by cases in other network industries where functional eventually gave way to structural separation (e.g. British Gas).

We also note that cases of negotiated functional separation are predicated upon a regulatory "New Deal" approach between regulators and incumbent operators which is radically different from the traditional unilateral obligations imposed upon operators. A conflictual remedial approach on this topic can on the other hand lead to standoff situations highly harmful to the telecoms sector because of as the Australian case blatantly shows. While separation can be voluntarily endorsed by some operators, unilaterally imposed functional separation is likely to create standoff situations damaging for the industry as a whole and making the scheme inoperative.

3. All in all, the risk/reward ratio of mandated functional separation remains particularly unfavourable for the telecoms industry at a time of unprecedented transition

The nature of functional separation is highly ambivalent: it can neither be considered as a panacea for regulatory reform (because of its significant implementation costs, unstable nature and irreversible effects while more predictive, proven yet less radical substitutes exist) nor dismissed as a plague when voluntarily decided or negotiated on equal terms by an integrated company. Being neither the perfect cure nor the worst of diseases, could functional separation in the end be a placebo?

We do not adhere to this view considering the profound and overall negative impacts mandated vertical separation has had in other network industries. We also believe that these risks are exacerbated in a fast-moving industry under transition. The telecoms industry is presently at a crossroads, facing an unprecedented accumulation of challenges resulting from new usage patterns (less metered voice, more non monetisable electronic communications), disruptive technologies which are creating new forms of service (e.g. VOIP) and infrastructure (e.g. Wimax) competition. Operators are in the process of adjusting their organizational and business models to adapt to these challenges. In this context, mandated functional separation holds the paramount risk of disrupting market-required and driven evolutions of industrial strategies and potentially on investment and deployment decisions for new broadband access networks.

The full research report is freely available upon request from IDATE.

N� - IDATE and PAC to partner with the EITO - 27 March

2008-03-27

Pierre Audoin Consultants and IDATE have joined their expertise in order to provide EITO with essential and up-to-date analyses of the Western and Eastern European Information and Communications Technology (ICT) markets. As part of this collaboration, EITO launched its renewed website on March 4th, 2008.

Pierre Audoin Consultants, the leading European market research and strategic consulting firm for the Software and IT Services Industry (SITSI), and IDATE, the leading European market analysis and consulting firm for the Telecom, Internet and Media industries have recently won a one-year market research project with Bitkom Research, the market research arm of Bitkom e.v, the largest information and communication technology association of all of Germany and Europe.

Bitkom Research hosts the European Information Technology Observatory (EITO) project, whose aim is to provide the most essential and up-to-date analyses of the Western and Eastern European ICT markets, including detailed statistics by country and by market segment.

As part of this project, Pierre Audoin Consultants (PAC) and IDATE lead a research consortium also composed of Context Worldwide and NetConsulting.
� PAC provides data and analysis for software and IT services markets and, in cooperation with Context Worldwide, for IT equipment markets,
� IDATE provides data and analysis for telecommunication markets including both end-user devices and network equipment and carrier services,
� Context Worldwide provides information on shipments and prices of IT equipment,
� NetConsulting is an Italian market research institute providing - in co-operation with PAC and IDATE - data and analysis for the Italian ICT market.

As part of the project, the research consortium provides detailed qualitative and quantitative information on 25 countries in Western and Eastern Europe, as well as benchmarking information with 7 of the most important ICT countries worldwide: Canada, China, India, Japan, Russia, Turkey, and the USA.

The segments covered by the research consortium include:
� IT Equipment
� Software
� IT-Services
� Network Equipment
� Telecommunication end user equipment
� Carrier Services
� Consumer electronics

This unique ICT market information is available through the www.EITO.com portal that was launched by Bitkom Research on March 4th 2008.

N� - Satcom2010 Symposium -

2010-06-02

IDATE and CNES (French Space Agency) are pleased to invite you to the S@tcom 2010 Symposium to be held within the Toulouse Space Show on the 9th and 10th of June 2010.

� This Symposium, co-organised by IDATE and CNES, will address during two days through various sessions, the future of the digital economy, the complementarities between satellite and ground based telecommunications and the place and roles played by telecommunications satellites in hybrid space/terrestrial architectures.

� Distinguished speakers coming from the telecommunication sector and from the Information and Communication Technologies world (industry, satellite operators, Telcos, Internet giants, service providers,�) known as first rank personalities at worldwide level will tackle the challenges and growth opportunities for the digital economy, terrestrial and satellite communications and will identify what is at stake for the various players in the added value chain and what are their winning chances to be efficiently positioned on the promising markets.

� Many prestigious VIP Speakers from major companies and public bodies such as Cisco, Akamai, SFR, SES, Orange, ARCEP, Intelsat, Iridium, Inmarsat, Eutelsat, Globalstar, Thales Alenia Space, Eads Astrium, O3B Networks, ESA, ,... have already confirmed their participation.

So we invite you to reserve in your diary the 9th and 10th of June to attend this exceptional event.

The website www.toulousespaceshow.eu/satcom2010 provides you with detailed information about the Toulouse Space Show 2010 full week event and the S@tcom 2010 Symposium in particular.

We hope to have the pleasure to meet you in June in Toulouse for S@tcom 2010 Symposium and the Toulouse Space Show event and to share this great moment with you.

N� - Digiworld Yearbook 2010 -

2010-06-02

This 10^th anniversary edition provides us with an opportunity to offer the work in various versions.

Alongside the print edition that is available in English and French, several digital versions of the report are now available as well an ebook version that provides dynamic access and can be read on a computer and certain ebook readers, along with dedicated iPhone and iPad versions.

> www.digiworld.org � complete information on the dedicated DigiWorld Yearbook 2010 website