uch as Free, part of the Iliad Group, have 8% of subscribers connected, via DSL, and VoIP penetration is expected to increase to 40% in 2007, with France Telecom forced to offer competing residential services since June 2004. 45 The local loop will still remain important for access and therefore will still be a bottleneck, that can only INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 2. TELECOMS INFRASTRUCTURE TO 2030 Figure 2.9. The low cost infrastructure to 2015 - a mix of competing infrastructures, technologies and operators Subscribers Local loop Long distance trunk and inter-exchange junction networks Enhancements over existing copper: xDSL - digital subscriber line Current PTO access HFC hybrid fibre copper coax and fibre trunk network Next: FTTH/FTTO fibre to home and office Mobile radio services replace fixed: International and national AWTs WiMax, etc. Fibre optic trunks and routers Cellular GSM, CDMA, UMTS, CATV, utilities, railways and others LEO mobile satellite MSS Microwave Line of Sight Fixed radio local loop (conventional, 28Ghz-40 GHz and AWTs-WiFi, etc. for above, Directional AWTs) Internet access, VolP, video, etc. Satellite and inter-satellite GEO/VSAT CATV local loop Voice telephony (VolP) Internet access and video Possibly offered by bypass players be challenged by bypass technologies such as mobile to the home or competing fixed infrastructure (Iliad in France has 70% of its customers on its own network fibre and DSL lines). Incumbent operators are prepared to go down this route because the market for high tariff voice is diminishing but the market in Internet connectivity is taking off. BT has even been forced into challenging Skype on pricing, is using it to sell broadband local loop connections. 46 And as emphasised above, the largest unfulfilled market is in the developing countries whose disposable income is rising but at a level that demands far lower costs. So investment levels are being driven lower, not higher, as cheaper inf