Research and Markets: Denmark Telecoms, IP Networks, Digital Media and Forecasts Report 2010

This report provides a comprehensive overview of trends and developments in Denmark's telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors.

This annual publication, Denmark - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Denmark.

Denmark enjoys Europe's highest broadband penetration rate, the result of excellent cross-platform competition, a populace keen to utilise the Internet and IP-delivered services, and a sympathetic regulatory regime which has effectively promoted access to the incumbents fixed-line network. The mobile sector has progressed with all four operators encouraging consumer uptake of data services on upgraded HSPA networks, while recent auctions for 2.6GHz spectrum have paved the way for network operators to deploy mobile broadband services based on LTE during 2011. The fixed-line sector continues to contract, as more people forego fixed phones for VoIP and mobile-only solutions.

Telecom revenue recovered slightly in 2009, having fallen in 2008 in part as a result of unfavourable economic conditions. It is expected to show only moderate growth during the next few years, scaled down somewhat through the effects of regulated tariffs on mobile termination rates and roaming, competition among players, as the continuing decline in voice revenue. Investments in the sector have nevertheless weathered the troubled liquidity markets, having risen steadily year-on-year. Still, the proportion of revenue re-invested in telecoms remains among the lowest in the EU. Pressure to maintain the investment momentum during the next few years will partly come from the government, which is keen to see its broadband strategies realised: its ambitious yet realistic aim is to have all households able to access a 10Mb/s Internet service by 2013, and for at least 80% of households to have a 50Mb/s service. By 2020, the government plans to have 1Gb/s services available to most households. This target will require significant upgrades to existing networks, and a wholesale replacement of the legacy copper network with an FttH architecture. To this end the regulator during 2010 instigated a number of measures to facilitate fibre networks builds (mainly concerned with municipal access to infrastructure such as ducts and private roads).

The mobile sector

In the mobile sector, the four competing network operators all secured licenses in the 2.6GHz band at auction in May 2010. The technology-neutral spectrum is suitable for 4G wireless broadband services based on standards such as LTE and WiMAX. Long-term investment by these operators will be encouraged by favourable terms, including the 20-year term and no requirements for geographical coverage or deadlines for rollout. Commercial considerations will encourage early deployment of LTE technology both TDC and 3 Scandinavia were expected to roll out LTE by the end of 2010 or early 2011. This development will fundamentally shift the focus from mobile voice services to high-end data services, and so help increase revenue and ARPU.

Digital switchover in Denmark was completed in November 2009. There are eight nationwide multiplexers for DTTV, including two for public service TV, while one multiplex has been reserved for mobile TV (DVB-H) and two as an innovation reserve to ensure that Denmark is prepared to meet future technological changes. In June 2010 broadcasts using the DVB-T2 standard were begun in Copenhagen. As for the remaining two multiplexers, it has not yet been decided whether the affected digital dividend will benefit broadcasters or be allocated for telcos for mobile broadband applications, though the governments emphasis on fast broadband networks would require more sub-GHz spectrum to be allocated for the latter.

6. Broadband Market 6.1 Overview 6.2 Cable modems 6.3 Asymmetrical Digital Subscriber Line (ADSL) 6.4 Fibre-to-the-Home (FttH) networks 6.5 Broadband Powerline (BPL) 6.6 Wireless broadband

8. Mobile Communications 8.1 Overview of Denmark's mobile market 8.2 Mobile statistics 8.3 Operator market shares 8.4 Regulatory issues 8.5 Mobile technologies 8.6 Major mobile operators 8.7 Mobile voice services 8.8 Mobile Messaging 8.9 Mobile data services

9. Forecasts 9.1 Forecasts broadband subscribers 2007 - 2012; 2020 9.2 Forecasts mobile ARPU - 2005 - 2010; 2015 9.3 Forecasts UMTS subscribers 2006 - 2010; 2015