Crister Mattsson

SWEDISH ICT

DIGITAL AGENDA

The target is that all EU citizens should have "basic broadband" access by 2013; and that by 2020 they should have fast coverage at 30 Megabits / second — with half of households having 100 Megabit subscriptions or higher

Problems identified:

The incumbents does not do the necessary investments in fiber networks.

Alternative public and private investors (including local administrations and public utilities) are often held back policy's and capital costs.

OPEN ACCESS NETWORKS – HOW IT WORKS

Open Network

End users

Communication Operator (CO)

Service provider (SP)

User access

Service access

Network Owner (NO)

Network access

(Accomo-dation)

Services

End users

BUSINESS MODEL –OPEN FIBER NW

Communication operator

End usercompany

ISPISPSP

Activeinfrastructure

Passiveinfrastructure

End user private

Regional/Citynetwork

Access/buildingnetwork

FiberFiber

RSP RSP RSP

N.O.

C.O.

Switches System

OPEN NETWORK MODEL

City Network

Operator

Services

NetworkAcessNetwork

Communication Operator

ServicePortfolio

NetworkAcessNetworkC

ity

Ent

erpr

ise

Tele

com

Car

rier

Cab

le T

V O

pera

tor

Open on dark fiber level

service level

Open on service level

O/A

A

A

A

A

Area network

Area node/ Access node

CPE

Network in the apartment

citynetwork

Access network

Operator

Active equipment

Exchange/ interconnection

Property nodeThe interface between access and citynetw

8

Co-operative 2

ON

ON

ON

Co-operative 1APOperator

AP

Serviceprovider

4G

Village network iniativeCo-operative owned network

Operator lease the network

PRICE FOR DARKFIBER

Figure 12 - Jämförelse av företagspriser (månadspris för 100 Mb/s beräknat på 36 månadsavgifter och anslutningsavgift) i Stockholm och Köpenhamn; källa: United Minds (2011)

ACC.INVESTMENT AND ROI

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

2000

4000

6000

8000

10000

12000

14000

16000

Figur 26 - Ackumulerade investeringar (röd) och samhällsekonomisk inverkan (grön) i form av ökat fastighetsvärde och intäkter för de kommunala bostadsföretag (för tillfället plus minus noll, pga stora investeringar) samt mervärde för deras hyresgäster, ökat sysselsättning, Stokabs vinst, besparing för kommunens och landstingets data- och IT-kostnader ökat ekonomisk aktivitet i leverantörindustri; båda i miljoner SEK 2012;

FTTH COSTS AND BENEFIT CALCULATION

Internet service revenue

Telephony service revenue

TV service revenue

Rol

l-out

cos

t

Telc

o re

turn

Un-

capt

ured

va

lues

Perceivedqualityof life

Perceivedqualityof life

reducedenvironment

impact

reducedenvironment

impact

higheremployment

higheremployment

Virtual labourmobility

Virtual labourmobility

reduced forcedmigration

reduced forcedmigration

entrepreneurshipentrepreneurship

Dev. of newtechnologiesDev. of newtechnologies

increased use of ICT servicesincreased use of ICT services

Profitabilityof NP and SP

Profitabilityof NP and SP

ProfitabilityOf PIP

ProfitabilityOf PIP

Educationquality and

cost

Educationquality and

cost

lower publ spendinghigher tax revenuelower publ spendinghigher tax revenue

DemocracystrengthenedDemocracy

strengthened

corruptiondiscouragedcorruption

discouraged

lower burdenof bureaucracylower burden

of bureaucracy

e-learninge-learning

Distance workingDistance working

transparency in PA

transparency in PA

efficiencyin PA

efficiencyin PA

Competitionbetween SPsCompetition

between SPs

lower pricesfor serviceslower pricesfor services

lower barrierslower

barriers

Very high access speedVery high access speed New infrastructureNew infrastructureDirect economic activityDirect economic activity

FTTH deploymentFTTH deployment

True cloudcomputingTrue cloudcomputing

HD and 3D TVVoD

HD and 3D TVVoD

VideoconfTelepresence

VideoconfTelepresence

E-healthE-health

E-government

E-government

Logistics, prod,

management

Logistics, prod,

management

NetworkgamingNetworkgaming

New/better services

New/better services

Ease to dobusiness

Ease to dobusiness

productivityproductivity

learningcurves

learningcurves

ICT competenceHR pool

ICT competenceHR pool

Customers for new services

Customers for new services

ICT Maturity:digital nativesICT Maturity:digital natives

RoWrevenues

RoWrevenues

Increasedmarket value

Increasedmarket value

FunctionalseparationFunctionalseparation

new businessmodel

new businessmodel

low upfront investment

for NP and SP

low upfront investment

for NP and SP

New ICT and traditionalcompanies

New ICT and traditionalcompanies

GDPGDP

SensornetworksSensor

networks reduced traffic congestion

reduced traffic congestion

Video surveillance

Video surveillance

Power grid efficiency

Power grid efficiency

FTTH deploymentFTTH deployment

FTTH/FTTx penetration in 2007

Ch

ang

e in

em

plo

ymn

ent

2007

-201

0 (a

dju

sted

) Higher employment

Higher employment

10%

0.1%

600 M€ 600 M€

120 M€/year 120 M€/year

FTTH deploymentFTTH deployment

Competitionbetween SPsCompetition

between SPs

lower pricesfor serviceslower pricesfor services

Increasedmarket value

Increasedmarket value

new businessmodel possiblenew business

model possible

Functionally separated open

access

Functionally separated open

access

New infrastructureNew infrastructure

Example: agreement tenant ass’n and housing companies• €5/month/apartment (+4)

Example: Price in Swedish fibre networks:•Dark fiber•100 Mb/s

Examples: Saving in data and telecom for:• City of Stockholm: 30%• Jönköping municipality: 15%• Stockholm region: 50%• Region Norrbotten: 50%

QUANTIFYING THE VALUES•Public savings in communication•Value for tennats•Increased employment

Crister Mattssoncrister.mattsson@acreo.se+46 70 092 77 92