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
    Flash Poll
    From The Founder
    Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
    Between the CEOs
    Affirmed Networks CEO: Digging Into NFV

    5|28|15   |   40:26   |   (2) comments


    Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
    LRTV Documentaries
    Cable Eyeing SDN for Headend, Home Uses

    5|26|15   |   05:57   |   (1) comment


    CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
    LRTV Documentaries
    Verizon's Emmons: SDN Key to Cost-Effective Scaling

    5|22|15   |   03:53   |   (0) comments


    For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
    LRTV Documentaries
    Lack of Universal SDN a Challenge

    5|21|15   |   04:51   |   (3) comments


    Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
    LRTV Custom TV
    Steve Vogelsang Interview: Carrier SDN

    5|20|15   |   05:02   |   (0) comments


    Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
    LRTV Custom TV
    Carrier SDN: On-Demand Networks for an On-Demand World

    5|20|15   |   20:52   |   (0) comments


    Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
    LRTV Documentaries
    The Security Challenge of SDN

    5|19|15   |   02:52   |   (0) comments


    CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
    LRTV Custom TV
    NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

    5|18|15   |   5:50   |   (0) comments


    Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
    LRTV Huawei Video Resource Center
    Bay Area Spark Meetup 2015

    5|14|15   |   3:54   |   (0) comments


    Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
    LRTV Custom TV
    The Transport SDN Buzz

    5|12|15   |   06:01   |   (1) comment


    Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
    LRTV Custom TV
    Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

    5|5|15   |   04:49   |   (0) comments


    John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
    LRTV Custom TV
    Meeting the Demands of Bandwidth & Service Group Growth

    5|1|15   |   5:35   |   (0) comments


    Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
    Upcoming Live Events
    June 8, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
    Hot Topics
    Charter Seals Deals for TWC, Bright House
    Mari Silbey, Senior Editor, Cable/Video, 5/26/2015
    Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
    Paul Rainford, Assistant Editor, Europe, 5/26/2015
    Will Carriers Follow Facebook's Networking Lead?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/28/2015
    Charter Plans Business Services, Wireless Push
    Alan Breznick, Cable/Video Practice Leader, 5/27/2015
    Facebook Reinvents Data Center Networking
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/26/2015
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    On May 29th 1 PM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
    Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
    Cats with Phones