Presentation to Joint Oireachtas Committee [27/01/2016]

Jeremy Godfrey, ChairpersonKevin O’Brien, Commissioner

Gerry Fahy, Commissioner

ComReg - Who we are

We regulate communications markets so that they operate effectively in the interests of consumers and society

Established in 2002 by the Communications Regulation Act Statutory objectives include:

Promoting the interests of end users Facilitating competition and consumer choice Facilitating innovation and investment Ensuring efficient use of radio spectrum

2

ComReg - What we do

Our functions derive from Irish and EU law Regulate operators with significant market power Uphold consumer rights Manage the use of the radio spectrum

Assign rights of use Manage radio interference (e.g. to support aeronautical safety)

Ensure delivery of Universal Service in telecoms and posts Various other functions, including numbering, charges for the

Emergency Call Answering Service, regulation of Premium Rate Services

3

Main trends

Users More

Video streaming Social media Smartphones and tablets Smart “things” like

thermostats Access via wifi and mobile

Less Fixed line phone calls Text messages Smartphone driving high data

usage growth on mobile

Networks Faster fixed connections

Fibre closer to the user Better wireless connections

Faster speeds with 4G Wider coverage of data

services following changes in spectrum rules

4

Broadband penetration in Ireland is above EU28 average

5

2007 2008 2009 2010 2011 2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

70%

80%

90%

42%48%

56%61%

67%72%

76%78% 80%

31%

43%

54%58%

65% 65%67%

80% 83%

Household Broadband Penetration Rates, EU-28 and Ireland

EU-28 Ireland

Source: Eurostat, Information Society Indicators, CSO

High speed platforms are taking greater market share

6

Broadband speeds are increasing

7

Q3'12 Q3'13 Q3'14 Q3'150%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7.9% 5.4% 4.0% 2.8%

61.8%52.5%

34.2% 29.9%

11.1%

9.6%

18.6%

13.1%

19.9%32.5%

43.2%54.2%

Total Fixed Broadband Subscriptions by Speed, Q3'12- Q3'15

<2Mbps (2Mbps - 9.99Mbps) (=10Mbps - 29.99Mbps) (=30Mbps - 99.99Mbps)Source: Quarterly Key Data Questionnaire

Competition in the retail broadband market

8

Many providers with a broad range of prices

9

How the fixed market has changed - networks

Much wider availability of high-speed broadband networks Eir (previously Eircom) high-speed network covering 1.3 million

premises, with public statements identifying a target of 1.9 million Virgin Media covers 760,000 premises Siro (ESB/Vodafone JV) plans initial coverage of 500,000 homes Overall high-speed coverage of 71% in line with EU average of 68% State Intervention planned for last 30% of premises

10

How the fixed market has changed - competition

Increased competition in fixed voice and broadband, between and on networks Market entry by Sky, Vodafone at Home, and others (through

regulated access to eir’s network) Virgin Media (previously UPC) has taken significant market share Competition on Bundles – voice, broadband, TV and mobile Declining importance of fixed voice but increasing importance of fixed

broadband to access data services – especially video Wireless, Mobile and Satellite play an important role

11

Competition and consolidation is changing the the retail mobile market

12

Contract and Prepaid revenue peruser have declined by 8% since 2013

13

Mobile data usage is growing very rapidly following the launch of 4G

-

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

25,000

27,500

30,000

-

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2,750,000

3,000,000

3,250,000 Q

2'11

Q3'

11

Q4'

11

Q1'

12

Q2'1

2

Q3'

12

Q4'1

2

Q1'1

3

Q2'

13

Q3'

13

Q4'

13

Q1'

14

Q2'

14

Q3'

14

Q4'

14

Q1'

15

Q2'

15

GB

per Q

uarte

r (0

00s)

Min

utes

(000

s)

Mobile voice and mobile data volumes in Ireland

Minutes (000s) Other Data Vols (000s GB)Source: Quarterly Key Data Questionnaire

500% Increasein mobile data usage

since 2011

Multi-BandSpectrum Auction

4G Launched

14

Existing 2016 2017 - 2019

405 MHz

755 MHz

1145 MHz

Spectrum Available and Planned for Mobileand Fixed wireless broadband services

• 86% increase in the available spectrum for wireless services in 2016 • With regional assignments complementing the National Broadband Plan• Supporting significantly enhanced wireless rural broadband services

• With the potential for a further 52% uplift of assignments • Including spectrum (700MHz) suitable for rural coverage extension

ComReg’s proposed Spectrum Strategy

PAST FUTURE

15

+86%

+52%

Consumer surveys show improvingsatisfaction with all services since 2013

16

Source: ComReg (fieldwork and data analysis carried out by RED C)

Communications prices have declined by 8% overall since 2011 versus CPI

17

Annual statistics on Customer issues logged show a downward trend of 15% year on year

The top categories of electronic communications service issues Billing and disputed charging issues largely unchanged Contractual matters down by 22% Service issues down 15%

18

Billing &

Disputed Charges

Contractu

al Matters

Service Is

sues

Not for C

omReg

Switching & N

umber Porti

bility

Customer S

ervice

Installa

tion Issu

es

Comreg Other

ComReg not Consu

mer Care

0

1000

2000

3000

4000

5000

6000 5649

40213521

17721329 1073 1031

629 403

55695148

4167

1544 1467 1301843

2704

423

ECS Comparison

2015 2014

Many have benefited but there’s still work to be done

Substantial progress in bringing advanced services to most of the population

Several initiatives will improve experience for users in less-densely populated areas, and elsewhere Government’s National Broadband Plan Continued investment by fixed and mobile operators Continued aggressive competition More spectrum releases by ComReg Continued action by ComReg to uphold consumer rights Continued action by ComReg to optimise and enforce fair competition

rules

19

Presentation to Joint Oireachtas Committee [27/01/2016]

Questions