Presentation by Telia Sonera

Report
New regulation enabling
Sweden’s digital agenda
Brussels, Robert Liljeström
April, 2014
Agenda
1. Sweden – Our situation and digital agenda
2. New regulation – EOI, only a first step
3. EOI – What does it mean in practice?
4. Implementation – Key success factors and risk
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April, 2014
TeliaSonera Business Development
Vi
Swedish Digital Agenda: Best in the world in using the
opportunities from the digitalization
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April, 2014
TeliaSonera Business Development
Challenging broadband target for a large country with small
population
Sweden
Germany
Population (million)
9
81
Area (000 km2)
450
350
Population density
(per km2)
22
40% of households
to have 100Mbit/s
1 (Stockholm)
by 2015
233
90%
households
1574ofkm
to have
499
km 100Mbit/s
by 2020
73% of area is forest, lakes
and mountains
876 km
640 km
Cities over 1M pop.
Distances
• North – South
• East – West
Other facts

Source: CIA world fact book; Wikipedia; visitsweden.se; travel-to-germany.net
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TeliaSonera Business Development
4
Fiber driving growth of 100Mbps+ access
High speed broadband Coverage in Sweden
% of
60%
population
50%
40%
100 Mbps
30%
Fiber
Cabel-TV
20%
10%
0%
2010
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April, 2014
2011
TeliaSonera Business Development
2012
2013
Agenda
1. Sweden – Our situation and digital agenda
2. New regulation – EOI, only a first step
3. EOI – What does it mean in practice?
4. Implementation – Key success factors and risk
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April, 2014
TeliaSonera Business Development
Necessary to create a regulatory situation that enables
deployment of fiber in increasingly expensive areas
Increasingly expensive areas to deploy
Broadband target:
From 53% today
to 90% 2020
Cost to
deploy
FTTH /SDU
Less expensive if
optimal
deployment
applied
Single
dwelling
units in
Sweden
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April, 2014
TeliaSonera Business Development
The regulatory challenge – From 1 access network (copper)
to 200 local city networks (fiber)
City Networks
(owned by
municipalities)
Skanova
(Part of TeliaSonera)
IP-Only
(private equity)
Geographical coverage
200 of 290
municipalities
National
Plans to become a national
fiber provider
% offering dark fiber
% offering capacity
> 95 %
> 80%
Yes
No
Yes
Yes
Annual investments (fiber
access network)
1.5-2 billion SEK/year
~1 billion SEK/year
Plans to invest 30 billion
SEK in city networks
Estimated market share
fiber (access)
66%
33%
A new regulation needed to secure access to relevant bottlenecks
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April, 2014
TeliaSonera Business Development
A new regulation is necessary to enable investments and
secure freedom of choice
Regulation enabling
•
Investment in new
infrastructure
•
Freedom of choice
for all consumers
EOI is only a
first step
3. Access to
relevant
bottlenecks
2. Reduced cost
for rolling-out
infrastructure
1. Predictability
and flexibility in
pricing
New EU-directive.
Secure access to
civil infrastructure
(electricity, water)
Replace price
regulation with
increased nondiscrimination(EOI)
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TeliaSonera Business Development
SMP is replaced
with “Symmetric
access regulation”
Agenda
1. Sweden – Our situation and digital agenda
2. New regulation – EOI, only a first step
3. EOI – What does it mean in practice?
4. Implementation – Key success factors and risk
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April, 2014
TeliaSonera Business Development
What will be different with EOI?
Same
Product
- Same quality
- Same
service(SLA)
- Same contract
Same Price
- Same price
list
- Same
discount
scheme
= Not implemented today
Same
Information
Same
process
- Same
interface for
information
- Same order
interface,
- Same process
from order
to delivery
Same
delivery
-Same delivery
-Same suppliers
Same
billing
- Invoice
generated in the
same system
Same KPI´s that are measured in the same systems guarantee that EOI is working
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TeliaSonera Business Development
Significant need for IT and process changes, in particular for
Telia SP
Current situation
TS-TelSims
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TeliaSonera Business Development
Wanted Position - EOI
Agenda
1. Sweden – Our situation and digital agenda
2. New regulation – EOI, only a first step
3. EOI – What does it mean in practice?
4. Implementation – Key success factors and risk
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April, 2014
TeliaSonera Business Development
Clear scope of implementation of EOI is crucial – Risk of
regulatory uncertainty during several years
• Clear scope of requirements to fulfill the coming 3 years (Not only EOI
directive)
• Definition of limitations of scope. What is outside the scope for the coming 3
years?
• Clear rules regarding when and how price regulation will be lifted
• An economic replicable test that fulfills its purpose (not a new LRIC-model)
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TeliaSonera Business Development
Wrap-up
• A new regulation is necessary to achieve digital agenda targets
• Assuming PTS decision 2014 EOI finalized within 3 years
• Clear scope of implementation of EOI is crucial – Risk of regulatory
uncertainty during several years
• EOI is only the first step. Long-term view and goal not defined – e.g.
symmetric regulation
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TeliaSonera Business Development
Thank you!

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