FTTH Council Global Alliance: FTTH Global Ranking

Chris Holden, President, FTTH Council Europe Heather B. Gold, President, FTTH Council North America Frank Jaffer, President, FTTH Council Asia Pacific Faris Awartani, President, FTTH Council Middle East & North Africa Juanita Clark, Managing Director, FTTH Council Africa

FTTH Council Global Alliance

Global Power with Regional Strength

Chris Holden, President of the Board, FTTH Council Europe

Our Mission To accelerate FTTH adoption through information and promotion in order to enhance the quality of life, contribute to a better environment and increased competitiveness

FTTH Conference 2013 London,19-21 February 2013

FTTH Global panorama end-2011 – Total subscribers

5.7 M

54.3 M 9.7 M

… and FTTH continues to grow

4.5 M

0.52 M

FTTH Global Ranking – end 2011

FTTH European Ranking – end 2011

Building Fiber-to-the-Home Communities Together

Fiber to the Home in North America and LATAM

Heather B. Gold

President, FTTH Council North America

Building Fiber-to-the-Home Communities Together

The North American FTTH Council

• Celebrated our Tenth Anniversary last year

• More than 270 member companies and organizations

• Half of members are network operators – Mostly small ILECs and CLECs in rural and small-town areas

– Some municipalities and public electric utilities

• 16 Canadian members

Building Fiber-to-the-Home Communities Together

• 9.6 million homes connected to FTTH/B – 8.3% of households

– 80% of connections are FTTH

• 22 million homes passed – About 20% of all households

• More than 770 network operators

• 75 percent of small independent network operators in the U.S. say they will likely upgrade to or expand FTTH service in the next few years

FTTH in the U.S.

Building Fiber-to-the-Home Communities Together

FTTH in Canada • Canadian FTTH deployment now ramping up in a big way

• 168,000 homes connected to FTTH/B – 1.3% of households

– 83% of connections are FTTH

• Bell Aliant is largest Canadian network operator – Also the largest on the NA Council

• Canada may grow at a faster pace than the US in the next five years.

Building Fiber-to-the-Home Communities Together

FTTH in Latin America • Chapter founded 2009

• 45+ members – 10 Platinum

– 19 Gold

– 12 Network Operators

– 4 Consulting Engineers

• Latin America FTTH deployment now underway – 1.5 million homes passed by FTTH

– 200,000 homes connected

• Leading network operators deploying in the re

– Telmex, Totalplay and Axtel (Mexico)

– Telefonica Brasil (Brazil)

– Telefonica de Chile, GTD, ENTEL and Telefonica del Sur (Chile)

– COTAS (Bolivia)

– ANTEL (Uruguay)

Building Fiber-to-the-Home Communities Together

74%

54%

51%

0% 20% 40% 60% 80% 100%

FTTH

Cable

DSL

13

North American FTTH Consumers

Source: RVA LLC 2011 Broadband Consumer Survey

Overall percentage “very satisfied” 100 Mbps Users:

2009 7,2002010 69,7002011 170,300

50 Mbps Users:2009 39,8002010 162,5002011 347,650

Building Fiber-to-the-Home Communities Together

Our Updated Mission

To accelerate deployment of all-fiber access networks by demonstrating how fiber-enabled applications and solutions create value for service providers and their customers, promote economic development and enhance quality of life.

Building Fiber-to-the-Home Communities Together

Areas of Focus - 2012

• Growing Council Revenue

• Community Outreach – “Community FTTH toolkit"

• Monetizing the Network – Identify revenue-generating opportunities for existing FTTH networks.

• Removing government barriers to FTTH deployment

Building Fiber-to-the-Home Communities Together

FTTH Conference & Expo

• Approx 2000 attendees from across the FTTH industry… – 130 exhibitors displaying

the latest FTTH products and fiber-driven applications

– Dozens of learning sessions covering every aspect of FTTH technology, deployment, public policy, network and business operations

– Keynotes and panels featuring FTTH industry trailblazers

– Interactive Fiber Zone

Building Fiber-to-the-Home Communities Together

FTTH in Asia Pacific New Demand … New Future

by Frank Jaffer, President, FTTH Council Asia Pacific February 16, 2012

Who are we ……

The FTTH Council Asia-Pacific is a non-profit organization established in 2005 at Singapore.

Aiming to educate the industry and the general public on the opportunities and benefits of FTTH solutions, FTTH Council Asia-Pacific members represent all areas of broadband industries, including telecommunications, computing, networking, system integration, engineering and content-provider companies, as well as traditional telecommunications service providers, utilities and municipalities.

19

Vice-President Changkun Yan Yangtze Optical Fiber and Cable Co. Ltd., China

Secretary Yoshihiro Ishibashi Sumitomo Electric Industries Ltd., Japan

Treasurer Walid Gamali 3W Networks, UAE/Australia

Director Monique Morrow Cisco Systems Pte Ltd., Switzerland

Director Robin Lu 3M Asia Pacific Pte Ltd, China

Director Kuldeep Goyal Radius Infratel Private Limited, India

FTTH Council Asia-Pacific – Board of Directors

20

President Frank (Fouad) Jaffer Senko Advanced Components, Australia

FTTH Council Asia-Pacific – Committees

Membership Chair: Rafael A. Jaron (Alcatel-Lucent) Vice-Chair: Yoshiaki Miyajima (Sumitomo Electric)

Provide a process that encourages the growth of membership.

Regulation and Policy Chair: Jay Teborek (Broadcom) Vice-Chair: Rajnish Wahi (Radius)

Promote and coordinate regional, geographic and governmental issues in order to facilitate the introduction and growth of FTTH in the region.

Technologies and Architecture Chair : Castonguay Guy (Corning Cable Systems)

Promote the awareness and business implication of active system, passive components and deployment techniques of FTTH network

Market Development Chair: Miguel Miyamoto (Senko) Vice-Chair: Anil Pande (Dura-Line)

Provide common understanding of the customer segments and their requirement; and to promote the markets development through communication.

Planning Communications & Events

Chair: Tim Clark (ETI Software Vice-Chair: Kouji Takata (Sumitomo Electric)

Plan and coordinate all general membership activities such as meetings and conferences. Also coordinate active and proactive public relation.

Education & Training Chair: Shoichi Hanatani (Hitachi) Vice-Chair: Nigel Moore (Senko)

Promote the FTTH Council APAC as a trusted & impartial central source for knowledge, facts, education and perspectives on FTTH

21

~7.6M

~3.4M

~39M

Q1 2010

+1.1m

+0.5m

Q4 2010 ~8.8M

~3.9M

~45M

+6m

Source: FTTH Council APAC

Q4 2011 >54M

22

FTTH in Asia – Overall Figures

FTTH in Asia – Overall Figures

In December 2011, details as follows:

• 54.3 million FTTH/B subscribers

• Yearly growth: 18.4%

• Japan, China and South Korea representing more than 90% of FTTH/B subscribers in APAC

Source: IDATE for FTTH Council APAC

23 23

new FTTH/FTTB subscriber

Every hour

Throughout 2011, in the Asia Pacific region, there is …..

24

APAC Global Ranking

7 APAC Countries in the Ranking at end 2011

Source: IDATE for FTTH Council APAC

FTTB

Main architectureFTTH

25

Source: IDATE for FTTH Council APAC

Market Evolution

APAC is the fastest evolving FTTH/B Market

26

FTTH/B Leading APAC Countries

• Pioneers Japan and South Korea always heading Asian FTTH/B market in terms of number of subscribers

• FTTH/B in China: migration from a potential to an effective market

• India: many players involved in a market to be created

• National programs: deployments are accelerating but no large commercial services before several months

• Malaysia is now entering Global Ranking as the 7th APAC country

• Smaller countries show a real dynamism: Vietnam, Taiwan

An heterogeneous region, from more mature to challenging markets ! Main national plans on their ways…

27

Source: Ovum. May/2010

APAC FTTH/B YE2013: ~130M subscribers 25% FTTH, 75% FTTB ~50% of wireline BB

Cumulative wireline broadband subscriber forecast

0

50,000

100,000

150,000

200,000

250,000

300,000

Subs

crib

ers

(000

s)

FTTH 5,348 8,001 11,403 15,161 19,176 23,567 28,332 32,454 FTTB 10,618 14,492 18,645 23,816 42,872 60,921 80,851 94,959 Cable modem 10,872 11,665 12,157 12,540 12,925 13,337 13,769 14,230 DSL 83,611 102,037 100,962 116,063 123,611 125,514 122,877 119,683

2006 2007 2008 2009 2010 2011 2012 2013

Sources: FTTH Council APAC/Ovum. Feb.2010

APAC is on the road to 130 millions FTTx subscribers by 2013

ROW0.7%

AP75.7%

NA12.5%

EUR11.0%

YE2013: 130 million APAC FTTH/B broadband

subscribers

Asia Pacific market leadership expected to continue

APAC Cumulative Wireline Broadband Subscribers Forecast

28

29

Why The Growth in APAC?

IPTV

Smart Grid

Mobile Apps

Digital Home

Back-haul

Online Game

See you in Shanghai, China, May 9 & 10, 2012!

Annual Conference & Exhibition

30

31

The Conference The Conference

Date: May 9 & 10, 2012 Venue: Pudong Shangri-La Hotel, Shanghai, China Theme: Linking Fiber, Living Better Conference Committee:

The Conference (Cont’d)

Under the overall theme of “Linking Fiber, Living Better,” this year’s conference will: • help better understand our fiber future and how it enables us to enjoy sustainable

quality of life in the new economy • together witness the key growth engine in Asia -- China • hear from government officials and regulators on their national broadband

strategies and roadmaps • find out from operators’ CIO on benefits and challenges of deploying high speed

broadband and what lies beyond for their businesses • get to know from analysts on the latest FTTH deployment, figures and trends • discover all sorts of mobile and fixed applications riding on fiber

32

www.ftthcouncilap.org

Dankeschön !! THANK YOU !! 谢谢 !! 명. 고맙습니다 !! GRACIAS !! ありがとうございます!! MERCI !!

33

FTTH MENA

In the Global Ranking

ENHANCING LIFE

By Faris Awartani

Chairman of the Board FTTH Council MENA

With only 10% of fixed Broadband penetration rate, FTTH deployments in the MENA region intensified in the past two years (2009-2011). The number of homes passed with FTTH grew by 34% between 2010 and 2011 .

Significant progress has been made in FTTH network deployment thanks to the involvement of governments, housing developers and alternative players.

The Gulf countries boast the strongest momentum in FTTH network deployment.

The Levant countries have seen a slower progress and plan for future deployment in 2012 and for the next 5 years.

FTTH MENA Overview

ENHANCING LIF

ENHANCING LIF

UAE: 2nd in the top 20 !

We are proud to have the UAE nominated as the second country in the G20 Global ranking in terms of FTTH .

ENHANCING LIF

Country Homes Passed YOYG Subscribers YOYG

SAUDI ARABIA 115,200 290% 35,400 510%

UAE 1,186,800 20% 445,200 48%

QATAR 77,700 486% 6,100 25%

KUWAIT 80,700 24% 5,400 16%

In December 2011, UAE is undoubtedly the main FTTH/B market in the region, in terms of subscribers and homes passed. Saudi arabia is witnessing a significant growth in homes passed and subscribers Qatar is growing fast.

FTTH MENA – Sample regional figures

ENHANCING LIF

...in few words

FTTH/B subscribers reached 523k in 2011, with a y-o-y growth rate of 55%. UAE accounted for 85% of all FTTH/B subscribers.

Take rates have largely been strong due to the targeted deployment focused on high-end residential areas and businesses

Ongoing initiatives by industry players coupled with government national strategies promise strong growth prospects for FTTH/B across the MENA region

ENHANCING LIFwww.ftthcouncilmena.or

FTTH Council MENA became an independent council in 2011 and was the Middle East Group within FTTH Council Europe from 2009 to 2010.

3 dedicated committees are involved to promote and accelerate the FTTH deployment in the MENA region and enhance the know-how:

Policy and Regulation Committee chaired by Dr Hosein Badran, CISCO

Technology Committee chaired by Mr Gamal Hegazi, ALCATEL-LUCENT

Market Intelligence Committee chaired by Dr Suleiman Al Hedaithy, MEFC

Our members are from the main FTTH industry players of the region including Vendors, National and Private Networks, Governments, Service operators, Utilities,..

15 members since July 2011 with 7 platinum members 40 members in 2012

FTTH Council MENA

ENHANCING LIFwww.ftthcouncilmena.or

Amman, Jordan 2009 Beirut, Lebanon 2010

Sharm El Sheikh, Egypt 2011

…and next November 2012 Doha, Qatar !

FTTH Council MENA Conferences

3 successful conferences so far…

ENHANCING LIF

THANK YOU

www.ftthcouncilmena.org

FTTH Council Africa

Juanita Clark Managing Director

juanita@ftthcouncilafrica.com

International bandwidth growth

Access Fibre Metro Fibre National Long-Haul Fibre

International Landed Fibre

SA Fibre Market: capacity requirement has moved from international to national.

Approaching the End-User

Competitive Comeptition is growing among the international submarine cable services.

Limited Alternative routes are being built however the speed of deployment is a major issue.

Expect increased competition, new entrant announced

Growing Potential for strong competition.

Limited to major metro areas.

Growing number of providers

Competitive Strong competition among access providers.

Network reach not ubiqutious.

Ftth not end to end.

Status

44

THANK YOU