31
Annual Report -
2013
-
Vivendi
Group Profile |
Businesses
| Litigation | Risk Factors
1
SFR
2.5.3.
Market
The telecommunications market is marked both by the end of growth
in mobile telephony and the extremely rapid growth in uses and data
traffic. This means that growth in mobile Internet use is continuing,
with 64% of SFR’s individual customers equipped with smartphones
compared to 51% at year-end 2012.
In 2013, the high-speed and very high-speed Internet market in France
continued to grow with a total of 24.9 million high-speed and very
high-speed subscriptions, an increase of 930,000 in one year. 2013
also saw an acceleration in fiber subscriptions (FTTH), to give a total of
540,000 subscribers (source: Arcep).
2.5.4.
Network
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2.5.4.1. Very high-speed mobile
(Dual Carrier and 4G)
SFR has made significant deployment efforts, which by year-end 2013
allowed it to offer 4G coverage to cover 40% of the population, with a
presence in 1,200 towns and cities.
SFR has also opted to extensively deploy 4G in the 800 MHz frequency
(so-called “gold frequencies”). This allows it to offer more efficient
coverage, with better service quality, particularly inside buildings.
At the same time, with the deployment of 4G in the 2600 MHz frequency
in densely populated areas, mobile Internet customers now enjoy
download speeds of up to 115 Mbits/s.
SFR was also the first in France to experiment with LTE-Advanced
technology. This evolution in the 4G standard allows it to provide even
faster speeds.
It is also the first operator to deploy 4G on Line A of the Paris RER
rail network, through its partnership with the RATP, and it anticipates
deploying it in the Paris Metro.
SFR has continued to expand its Dual Carrier technology, allowing it to
double download speeds and ensure the best very high-speed mobile
coverage (over 70% of the population was covered by year-end 2013).
In July 2013, SFR and Bouygues Telecom entered into exclusive
negotiations on a collaboration agreement for a portion of their mobile
networks. This agreement was signed on January 31, 2014. It will
enable both operators to offer their respective customers the best
geographic coverage and service quality.
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2.5.4.2. 3G / 3G+
At year-end 2013, the SFR GSM / GPRS (2G) network covered over
99.7% of the French population, while the UMTS / HSPA (3G / 3G+)
network covered 99.3%.
SFR is continuing to increase the capacity of its 3G+ (HSPA) network to
support new uses of mobile Internet, as 3G+ data traffic increased by
40% in 2013.
Beyond increasing speeds, SFR aims to provide the best mobile Internet
experience. It is achieving this by expanding its efforts to increase the
density of its 3G+ network and by deploying 3G+ in densely populated
areas on the 900 MHz frequency, particularly in the cities of Lyon,
Marseille and Toulouse. As a result of this technology, it is able to offer
a quality experience everywhere for voice and mobile Internet services.
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2.5.4.3. Wi-Fi
The SFR Wi-Fi has more than 4 million hotspots in France.
SFR is the only operator to incorporate Wi-Fi access in the major subway
and RER stations in Paris into its offerings through its agreement with
Naxos, a subsidiary of RATP.
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2.5.4.4. Fixed high-speed Internet
SFR has reaffirmed its goal to become a major player in fixed very high-
speed Internet with the following developments:
in 2013, it continued development in the area of fiber-to-the-home
(FTTH), which was offered to 1.5 million fiber-eligible households
in France. Following the strategic agreement entered into with
Orange to roll out fiber coverage in less densely populated areas, in
late 2013, SFR began marketing FTTH in over 30 cities;
this year, SFR was also the first operator to launch a pilot 1 Gbit/s
fiber project and offer this service to eligible customers;
at year-end 2013, SFR had the largest alternative fixed-line network
in France. It connects nearly 6,200 SCUs (Subscriber Connection
Units), for almost 23 million unbundled lines, which is the widest
coverage among all alternative operators. With over 800 unbundled
SCUs in 2013 alone, SFR achieved a deployment volume that has
not been reached since the start of unbundling in France in 2001;
it connects 100% of France Télécom subscriber switches, thus
allowing SFR to provide switched voice services and offer favorable
interconnection rates.
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2.5.4.5. Services to local authorities
SFR Collectivités is the Group’s entity dedicated to local authorities.
Its role is to support SFR’s networks and services deployment strategy
in accordance with local needs.
Beyond the cooperative relationship between the Group and local
authorities, this entity also operates in major long-term partnerships,
such as public initiative networks (
Réseaux d’Initiatives Publiques
, or
RIP). These physical networks are built by local authorities that invest
together with private partners. These allow SFR to expand very high-
speed coverage and ensure the growth of operators in semi-urban and
rural areas. They are largely managed in the form of Public Service
Delegations (
Délégations de Service Public,
or DSP). SFR Collectivités is
responsible for deploying fixed and mobile infrastructure networks, with
