Light Reading

Cable Operators Boast Euro Growth

Ray Le Maistre
3/5/2013
50%
50%

LONDON – Cable Congress 2013 -- While many of Europe's incumbent telcos are struggling with shrinking sales and increasing competitive threats, the region's cable sector appears to be thriving. (See Europe's Telco Services Suffer Shrinkage.) In London this morning, executives from industry body Cable Europe presented the latest annual statistics, compiled by IHS Screen Digest, for the cable services sector across the European Union's 27 member countries (so not including Norway or Switzerland). Here are the highlights:

  • In 2012, European cable operator revenues grew by 5.5 percent year-on-year to €20.6 billion (US$26.8 billion), comprising €11.2 billion from TV/video services, €5.6 billion from Internet access service and €3.7 billion from cable telephony. That annual growth matches the bullish projections made for the sector last year. (See Europe's Cable Ops in Bullish Mood.)
  • Within that total, digital TV revenues grew by 12 percent, Internet access revenues by 6.5 percent and cable telephony by 5.3 percent.
  • Video-on-demand services generated revenues of €342 million ($446 million), up by 24 percent compared with 2011.
  • The total number of revenue generating units (RGUs) increased by 3 percent to 106.5 million, with the gains coming from broadband and telephony subscriptions.
  • The number of digital TV subscribers grew by 9.2 percent to 30.5 million: 2012 was the first year in which there were more digital than analog TV subscribers in the EU 27 countries. However, the total number of customers taking their TV services from cable operators is in decline (exact numbers not provided), as some former analog cable TV customers turn to other modes of pay-TV service (satellite, IPTV).
  • Cable broadband subscriber numbers grew by 8.4 percent to more than 27 million (though there is no breakout to show how many of these have Docsis 3.0 connections). According to Cable Europe, the average cable broadband speed experienced by end users in Europe is 32 Mbit/s, an impressive figure. Growth is a good thing, obviously, but is cable broadband gaining market share in Europe? According to the team at IHS Screen Digest it is. In the EU 27 countries, cable grew its share of the total broadband market from 18.54 percent at the end of 2011 to 19.34 percent share at the end of 2012. And while DSL still dominates, accounting for 74.26 percent of the total broadband connections in the EU 27 member countries at the end of last year, that market is reaching saturation and grew by just 2.22 percent year-on-year in 2012. Cable broadband "is growing at a faster rate than DSL," confirms the IHS Screen Digest team. "The investments of the past 10 years are paying off," said the sector chief cheerleader, Cable Europe President Manuel Kohnstamm. (His day job is as chief policy officer at Liberty Global Inc., but he declined to comment on the upcoming acquisition by Liberty of Virgin Media Inc. -- see Liberty Makes $23.3B Play for Virgin Media.) Kohnstamm does have a point: Europe's cable operators have been investing heavily in their networks in recent years, upgrading to Docsis 3.0 and enhancing multimedia service capabilities as the region's telcos dithered over fiber broadband investments. (See Euro FTTH Set for Growth Spurt.) Now there are new challenges, not only as the telcos start to increase their fiber and VDSL2 investments but as the over-the-top (OTT) players challenge for TV/video viewing time and mobile operators spy opportunities to offer richer services packages over 4G. Kohnstamm notes that the European cable sector is increasingly focused on delivering the access (including Wi-Fi), content, services and new applications that users demand on multiple platforms. — Ray Le Maistre, International Managing Editor, Light Reading

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    From The Founder
    Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Custom TV
    Hosting in Ireland, Past & Present

    2|10|16   |   16:07   |   (0) comments


    Garry Connolly, president of Host in Ireland, presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
    Women in Comms Introduction Videos
    What's Hot in Mobile Commerce?

    2|10|16   |   12:18   |   (1) comment


    Claire Maslen, financial services relationship manager at the GSMA, talks about the development of the digital commerce sector and the types of relationships that mobile operators are developing to further their m-commerce strategies.
    LRTV Documentaries
    EANTC Tests Nokia IP Routing & Mobile Gateway VNFs for Real World Deployment

    2|9|16   |   5:08   |   (1) comment


    Nokia obtained validation of its virtualized router and virtualized mobile gateway capabilities through rigorous testing performed by EANTC. The results set a new industry benchmark for outstanding performance, scalability, resiliency and manageability. Nokia VNFs are ready for telco cloud deployment, so that service providers can accelerate mobile, business and ...
    Between the CEOs
    CEO Chat With Level 3's Jack Waters

    2|8|16   |   26:15   |   (1) comment


    Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
    LRTV Custom TV
    The Composable Telco

    2|8|16   |   24:46   |   (0) comments


    Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
    LRTV Custom TV
    Join Us at the Digital Operations Transformation Summit

    2|4|16   |   03:52   |   (0) comments


    The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
    LRTV Custom TV
    Making the Test: ADVA Ensemble Connector vs. Open vSwitch

    2|4|16   |   01:28   |   (0) comments


    Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
    LRTV Custom TV
    Bridging the Gap Between PoCs & Deployment in NFV

    2|4|16   |   31:50   |   (0) comments


    Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
    Between the CEOs
    CEO Chat With Mike Aquino

    2|3|16   |   17:34   |   (0) comments


    The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
    Shades of Ray
    MWC: Buckle Up for 5G & the IIoT

    2|2|16   |   02:28   |   (0) comments


    This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
    LRTV Custom TV
    Case Study: Building China's Next-Gen TV Networks

    2|2|16   |   5:01   |   (0) comments


    With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
    LRTV Custom TV
    Quad Channel Modulator Driver with 46 Gbaud Capability from MACOM

    1|28|16   |     |   (0) comments


    MACOM's MAOM-003427 is the industry's first surface-mount modulator driver with 46 Gbaud capability to support next generation 200G and 400G applications.
    Upcoming Live Events
    March 10, 2016, The Cable Center, Denver, CO
    April 5, 2016, The Ritz Carlton, Charlotte, NC
    May 23, 2016, Austin, TX
    May 24-25, 2016, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Hot Topics
    Google's 5G Radio Ambitions Are Expanding
    Dan Jones, Mobile Editor, 2/5/2016
    Cincinnati Bell Joins Weight Watchers Club
    Alan Breznick, Cable/Video Practice Leader, 2/5/2016
    Yahoo & Verizon Sitting in a Tree...
    Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 2/8/2016
    Vodafone: Flexible Work Policies Boost Profits
    Sarah Thomas, Editorial Operations Director, 2/8/2016
    It's Time to Integrate OTT Video
    Alan Breznick, Cable/Video Practice Leader, 2/8/2016
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
    The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
    Animals with Phones
    Retro Is the Way to Be Click Here
    Some animals are too cute for smartphones.
    Live Digital Audio

    Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.