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Rating of Operators of Fixed Broadband by the End of 2Q 2014

3 years ago

3421 words

Consulting group Expert & Consulting (www.encint.com) interviewed key market participants and summed up the results of the second quarter. Also, we asked the players comment on the situation and operation of companies in the area of ATO.

RATING

According to the evaluation of group «E&C» (www.encint.com) the rating* of operators of fixed broadband by the end of IIQ 2014 looks like:

Интегральный рейтинг операторов фиксированного ШПД II квартал 2014

* Ratings are estimates. E & C reserves the right to review performance of the ranking. Total score in the integral is the sum of the equally weighted rating scores for all categories of operators. Point operator in a particular category – the percentage values of the index of the operator in this category of the maximum value in the same category, rounded to one decimal place. Position of the operator in a particular category – the serial number of points in this category, from largest to smallest. Sources identify indicators of companies are data from a survey of operators and / or evaluation of the group E & C.

1. Subscriber base – consider the general (natural and legal persons) active base (based on the internal accounting system operator) subscribers.
2. Dynamics of the subscriber base reflects growth period to period.
3. ARPU is calculated blanded (legal entities and individuals) for each quarter of the relevant period by dividing the revenue received by the company for providing services in the quarter, excluding revenue received for telephone services, TV / video content, and from the sale of computer accessories and other revenues not related to the provision of services by the average number of active subscribers of between two quarters.

The rating includes leading Ukrainian providers of fixed broadband in terms of subscribers by the end of the 2nd quarter of 2014:

Интегральный рейтинг ведущих украинских провайдеров фиксированного ШПД по количеству абонентов по итогам 2-го квартала 2014 года

We consider the total (natural and legal persons) of active database (based on the internal accounting system operator) subscribers of companies operating under the brand operators.

COMMENTS

As part of the rating, the following comments and forecasts of market development and major events on it. Special attention was paid to the description of the situation and the specifics of the companies in the area of ATO.

Sergey Shishkin, Marketing Director of “Fregat”
Сергей Шишкин, директор по маркетингу компании «Фрегат» Fixed Internet market continues to show steady growth. Naturally, the best growth performance in small towns. However, demand in major cities also still growing and has not yet reached the limits of its capacity. Our company traditionally fights seasonal decline increased marketing activity. It is an aggressive marketing policy and activity in M & A direction has allowed us to obtain a rapid increase in the subscriber base.
Market negatively affected by two factors: the situation in eastern Ukraine and the devaluation of the national currency. Increase in cost of services we produced in May. In the future, we also think to index (increase the value). But while the country hard, we have postponed the implementation of these plans.
Market prospects we see in the video content. In October, we are preparing a surprise for our customers. We plan to introduce an innovative service in this direction, which is sure to “ignite the napalm.”
In the near future we plan to focus on expanding the territory of the presence of our brand. Already in the next ranking, we will share the list of new cities. . Also, we pay great attention to charity. We help people that know how to do best – provide high-quality access to the Internet. More recently, we have covered a seamless WiFi territory of the regional hospital. In the near future we plan to provide high-quality access to other clinics and hospitals.

Vadim Sidorenko, Chief Executive Officer at “Triolan”
Вадим Сидоренко, и.о. генерального директора «Триолан» At the moment we are seeing in the market seasonal decline. But, in general, the market is showing steady growth. Our company, in spite of the massive summer suspension of services, managed to grow both in the number of subscribers, as well as financial performance. Due to inflation, we have decreased performance in dollar terms. The fall of the national currency is a major negative factor, which not only affects the attractiveness of the market for investors, but also requires a revision of the prices of virtually all players. Rising costs for equipment, construction, maintenance and, ultimately, on the staff. And all of this is tied to the currency. In general, the market will show steady growth in subscribers and revenues of UAH, but fall in financial terms, translated into the currency.
Market prospects for innovation. But count on high returns from innovative services and services not worth it. For example, our services such as video surveillance, or can select a channel, rather than the whole packet, while attracting small number of subscribers. For as long as we are talking about thousands, not tens of thousands of users, then, unfortunately, it is not enough to carry this type of service to the main drivers of the market. In any case, it is the constant upgrading of existing services and their gradual addition of innovative services and a guarantee that the operator will retain its subscribers and, as a consequence, the business.
Of the main news of our company – we are working steadily and grow. Plans to rebrand we postponed including for the reason that we won the majority of the courts. In the near future, we plan to focus on wireless Internet services. This service, we plan to make a free for our subscribers (included in the regular package). But for other users while working on monetization model. Consider as pripeydovuyu and advertising model.
As for the “video on demand”, while it is possible to talk about numbers several thousand members. It is not yet tens of thousands. Accordingly, the service generates some income, but as long as it’s not the volume that we would like to see. Pay more attention to Wi-Fi in the city. At the time of publication of the rating we have already covered 150 schools.
The situation in the area of ATO
If we talk about our presence in the area of ATO, then our company’s presence in the area is insignificant. But, as elsewhere, where does our brand, we are doing everything possible to keep the network operational. In Crimea, we as well as other operators continue to work after the procedure of renewal of our legal entities.

Oleg Eliseev, Chief Executive Officer at TENET
Олег Елисеев, генеральный директор телекоммуникационной компании TENET One of the biggest news on the market, of course, is the change in leadership of the NCCR. In general, in the second quarter went waiting for the first, in particular, the opening frequency 3G. For a company TENET main news was the launch of a new corporate website with enhanced features for subscribers. In other news – the planned expansion of network coverage TENET Wi-Fi (public street technology Internet Wi-Fi), in particular, in the outskirts of the city of Odessa and in Illichevsk and planned development and construction of the network.
Basic trends remain unchanged – an interest in a balanced and comprehensive packages (Internet access wired and wirelessly and digital TV). We expect further growth of interest of users to wireless Internet open air.
The second half of 2014 TENET plans to continue the development of the network, as well as to expand the wireless network Internet access open air TENET Wi-Fi. We are also working on a new digital television services TENET-TV and in the new quarter plan to launch new products.

Gyorgy Zsembery, Chief Executive Officer at Volia
Джордж Жембери, генеральный директор компания ВОЛЯ In the first half of 2014 dialogue between the participants of the telecommunications market and the government to improve legislation in this field has become more constructive. For example, already stated its readiness to issue licenses for third-generation technology.
It is important to note the fact that the new National Council of Ukraine on Television and Radio Broadcasting has shown a willingness to listen to the wishes of both providers and organizations representing the interests of industry participants, and to improve the business climate in the market.
For national companies test was the situation after the annexation of Crimea by Russia. Volia chose to leave, leaving only the brand. Beneath it is now working Russian company that pays us royalties.
Nevertheless, the first half of the will in the Internet sector was quite productive. Despite the current situation, we have been able to sustain the pace of the planned investment, as the quality of service for us – the most priority.
That’s why our TOP 3 events in the sector of Internet services is as follows:

1. To implement the project transition of some DOCSIS-cities on the EuroDOCSIS standard allocated to replace subscriber equipment, and such a change is currently underway in accordance with the schedule.

2. System of monitoring the quality of services providing access to the Internet, the criteria of which are: a) the frequency of rebooting the modem subscriber; b) S / N ratio upstream / downstream (DownStream SNR, UpStream SNR), which helps to identify the “red zone”. For those subscribers whose addresses are in such a zone, a specialist of Volia obliged to check the reliability of on-site cabling in the apartment layout and quality of the modem.

3. Completed the construction and modernization of new Internet networks in Kiev and Lutsk, commissioned more than half of the planned sites in Lviv.

We assume that in the 3-4 quarter of outstanding growth rates will not be none of the providers. There are several reasons:

  • decline in the purchasing power of the population because of the devaluation of the hryvnia;
  • technical and political difficulties in the south-east: the loss of the revenue and subscriber base. Inevitable and force majeure costs – for the restoration of these areas of damaged infrastructure;
  • reduction of market globalization (transactions M & A) as a result of the investment crisis.
  • However, in terms of growth potential there. First of all, this is a classic offer unique services that differ from the standard market offerings and at the same optimal price. For example, today a standard “clean” Internet and price dumping on the market is no surprise; need to feel constantly changing format of consumer Internet and TV services, take into account the growth of devices for Smart TV and Internet TV producers, as well as increasing the size and quality of displays, tablets and smartphones. It is these trends are reflected in the services that Volia plans to launch in the second half of the year, following the principle of the golden mean in the price-quality ratio.
    The situation in the area of ATO
    No comments.

    Press center of “Ukrtelecom”
    ukrtelecom Situation in the country influenced the slowdown in the market in terms of subscribers, compared with previous periods. On the market price wars continue, though it should be noted that there are divergent trends, the players have changed their rates upward, and some – downward. Players also virtually extend coverage of their networks outside of the big towns.
    Ukrtelecom in the first half continued geographical expansion of Internet services in small towns and villages. This year, thousands of people in more than 40 localities have gained access to the worldwide network.
    A key focus for Ukrtelecom is to improve the quality of services and customer service, development of new product and tariff proposals to meet customer demand.
    In May, we have updated the range of tariff plans for unlimited Internet access to existing and new subscribers, individuals all over Ukraine in order to better meet the needs of network users in different cities of Ukraine. In the first half the company is actively working on the market introduction of new products. In particular for its subscribers unlimited Internet company has prepared a new service – Interactive TV, which is presented in June. Service includes more than 130 TV channels, 10,000 movies and TV series of high quality. Ukrtelecom provides Interactive TV together with OLL.TV (digital television service company “Digital Skrinz”) on a partnership basis.
    We do not expect significant changes in the market. In the face of considerable uncertainty are unlikely to invest more, which could have a significant impact on the market. For its part, Ukrtelecom will continue to increase its own network coverage in rural areas, as well as to invest in the improvement of service quality and customer service.
    The situation in the area of ATO
    Experts of the company is carried out a set of measures to restore the infrastructure that was damaged during the fighting. Ukrtelecom continues recovery work in the region, understand the importance of providing its residents bond. In localities where there is a problem with the power supply, Ukrtelecom is doing everything possible to ensure the residents bond, in particular uses backup power system. Where at the moment there is no way to repair the damage to the network operator organizes and uses redundant channels required bandwidth. Repairs begin as soon as there is no threat to life and safety experts of the operator.
    Functioning of telecommunications networks resumed as completion of repair work in the region and ensure that settlements power. In a number of the liberated towns almost completely renewed provision of telecommunications services.
    Operator is doing all it can to people in the region had access to communication services. Despite the difficult situation, the company behind all this time did not stop providing its services. Subscribers can use the fixed telephony and Internet access, periodically testing the complexity of the territory of active hostilities.
    In addition, Ukrtelecom has introduced special rates for the suspension of Internet access and fixed telephony for the residents of Donetsk and Lugansk regions, who were forced to leave the territory or may not now pay for communication services. The cost of the service is – 1 UAH. per month including VAT. The offer applies to all customers, any form of service. For registration rate should apply to any division of the territory of Ukraine or the call to phone number Contact – center 0-800-506-800 (toll free within Ukraine from Ukrainian room operators).
    Similar proposal from Ukrtelecom to halt unlimited Internet Accessing valid and mobilized subscribers and their close relatives, who live at the provision of the Internet. For special tariff mobilized must submit a written application and a copy of the notice of the Military Commissariat of the appeal to the nearest branch of the company. If you have already carry the service, registration can realize relatives residing at the address specified in the contract for the provision of the Internet.

    Press center of Vega
    Vega The consequences of the political and economic situation in the country and recognized in the market of fixed broadband.
    By the end of the 1st half of a decrease in the number of requests for connection and construction of access points on the part of small and medium businesses as well as large companies. In addition, due to optimization of the rental premises and reduce the costs of communication, many companies are reviewing their plans and abandon previously stated the connection service. At the same time, in the second quarter of this year, customers-individuals who are very active in connecting services such as telephony and the Internet compared to the same period last year. Among the popular services for business should be allocated transport services due to the new address, this is due to the forced relocation of offices companies in Eastern Ukraine in the other regions of the country. Realizing this actual need of customers, Vega quickly expanding its network. The company organizes the new access point for data transfer and access to the Internet related services to meet the needs of migrated clients. In areas where terrestrial channels are damaged, and restore them physically impossible or economically not feasible, use a wireless solution with wireless access in the last mile technology Wi-Fi.
    The main news of the first half in the telecom industry can be regarded as the activation process for the implementation of the third generation.
    Among the trends of the period can be identified shift towards home users, focusing on the improvement of service quality and expand the range of services provided.
    Today it is difficult to predict the development of the industry in the near future as a key factor in its development, still remains the economic stability in the country. Trend to optimize business processes and improve business efficiency, obviously, will continue in the second half. Ukrainian operators SHPDI will be looking for new ways to generate income, the development of VAS services as a growth point ARPU and customer loyalty. Focus on customer needs and improve the quality of service will remain unchanged.
    Current trends in the industry Vega perceives as a professional challenge, because the operator is responsible for the high-quality services to subscribers throughout the country. The company has made every effort to ensure that telecommunications services to subscribers of Donbass. Our main goal today – it’s not leave customers in the information isolation.
    Vega will continue to work on implementing solutions that including focus on cost optimization and customer IT telekomuslugi depending on their needs. Operator team develops proposals for services outsourcing, business process improvement, this will help increase the efficiency of business clients in complex current situation.
    The situation in the area of ATO
    In the eastern branch of the Vega in connection with the situation in the region to connect and repairs are not undertaken in full. Operational restoration work carried out on the networks in the absence of threat to life and health of employees. The possibility of resuming work constantly coordinated in accordance with the current situation. Of course, the provision of telecommunications services to subscribers – priority telecommunications group Vega. Now, however, the safety of life and health of employees – the highest priority for the company.
    At the time of the comment in the eastern branch of the nodes in the network did not work Vega in the cities, where operations were conducted: Shakhtyorsk Lugansk.
    In Kramatorsk Druzhkivka and Slavic enterprise work resumed as usual. In Slovyansk recorded a large amount of damage to the infrastructure. Employees of the company in this city cope with the consequences of hostilities, the process is complicated by the fact that their colleagues from Donetsk can not go “to the rescue” and deliver the necessary materials for the repair network. In Mariupol work goes into normal mode.
    At the end of the 2nd quarter is the most difficult situation is in Donetsk, Makeyevka and Khartsyzk. In those cities, the staff of the operator or left on vacation or continue to work remotely. Reconstruction work and client connections are not possible. During the period of the ATO has collected more than 1,000 applications for the removal of damage, the cause of most of them – the theft of copper cable, which is currently not possible to recover. Does not work largest FTTH network in a war zone because of damage to fiber optic links and energy input fragments aggregation site. A lot of damage in other areas of FTTH Donetsk. The absence of a stable electrical supply to areas of the city causes periodic failures of the sites.
    Demand for services in the region due to military operations decreased by 80%. An increase in the number of subscribers to the transfer request services or for new plants in the city outside the ATO, particularly among large businesses. Most of the subscribers of both corporate and private, have temporarily suspended the use of services. From July 2014 to subscribers of Donetsk and Lugansk regions the company has offered a special rate for the provision of services “Pause”. For residents of Donbass cost of service for the temporary suspension of Internet access and telephony services is £ 0.00.
    After the end of hostilities on our optimistic forecasts of the company will take at least two months for recovery and exit to normal operation in the eastern branch of the Vega.

    Source: Expert & Consulting (www.encint.com). Reference to the source and active clickable link is obligatory.