How telecommunications are changing the world and themselves

Darius Didžgalvis,TEO LT, AB

The fastest broadband in EuropeNo. 1 Lithuania

No. 2 Sweden

No. 3 Bulgaria

No. 4 Latvia

No. 5 Norway

0 % 5 % 10 % 15 % 20 % 25 % 30 %

EU average

Economies with the highest penetration of Fiber-to-the Home/Building + LAN

FTTH/B and LAN

Source: IDATE and FTTH Council Europe, 2013 February

In Lithuania

78 % of households

could have FTTH/B

Andorra: 100 %

Slovenia: 44 %

Latvia: 41%

Portugal: 40 %

0 100 M

1 M 75 M

5 M 50 M

10 M 30 M20 M

Download and upload index

1 Hong Kong: 46.91 Mbps

1 Lithuania: 30.85 Mbps

2 Lithuania: 37.22 Mbps

2 Hong Kong: 30.00 Mbps

3 Taiwan: 36.47 Mbps

Source: www.netindex.com

Lithuania 52 people per km2

Hong Kong 6901 people per km2

Why is high speed broadband growing so fast in Lithuania?

Competition Technology Price

Transformation of the world into information universe

What drives

the change?

Investors‘ expectations

Technology shift

Customers‘ needs

Technology shift and 3 key

enablers

Cloud / Big data

Internet / Network

Access technologies

2000 2002 2004 2006 2008 2010 2012

10 000

1 000

500

100

24

108410

Forecast speed for fixed and wireless access

P2P - 10GE

P2P - GE

P2P - FE

Mbp

s

VDSL2

ADSL2+

ADSL2

ADSL

UMTSGPRS

NG - PON

LTE WiMAX

HSPA+ WiMAX

HSPA

GPON

Forecasted demand for broadband access speedForecasted average access speed (Mbps)

10

100

1 000

10 000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

High competition area BB access speed

Nielsen law

Traffic growth forecast by type

Gopher, FTP

Web Overtakes Gopher, FTP

Video Content Overtakes Peer-to-Peer

Video Communication Overtakes Video Content

Peer-to-peer Overtakes Web

1990 1993

1995

2005 2015 20202000

2010

Internet of Everything

Examples of digital home services

Digital Home

Home Automation & Control

Home Networking

Content & Entertainment

Human Assistance

Simplicity

Security

Next-generation telco services

HD streamed games Doctor @ Home 3DTV

Touch-screen telepresence

360 degree video streaming

Virtual academy

...and creating new architecture

Smart Cloud

Smart Pipe

Smart Device

Old pattern: product - operator - customer

New model: producers, operators, global service providers - customers

Call

Browse

Watch TV

Rent Video

Lithuania’s possibilities to have IT exclusivness in the world