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New regulation enabling Sweden’s digital agenda
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New regulation enabling Sweden’s digital agenda Brussels, Robert Liljeström April, 2014
description
New regulation enabling Sweden’s digital agenda. Brussels, Robert Liljeström. April, 2014. Agenda. Sweden – Our situation and digital agenda New regulation – EOI, only a first step EOI – What does it mean in practice? Implementation – Key success factors and risk. Vi. - PowerPoint PPT Presentation
Transcript of New regulation enabling Sweden’s digital agenda
New regulation enabling Sweden’s digital agenda
Brussels, Robert LiljeströmApril, 2014
TeliaSonera Business Development2
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
April, 2014
Vi
April, 20143
Swedish Digital Agenda: Best in the world in using the opportunities from the digitalization
TeliaSonera Business Development
TeliaSonera Business Development4
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)
22 233
Cities over 1M pop. 1 (Stockholm) 4
Distances• North – South• East – West
1574 km499 km
876 km640 km
Other facts 73% of area is forest, lakes and mountains
April, 2014
Source: CIA world fact book; Wikipedia; visitsweden.se; travel-to-germany.net
40% of households to have 100Mbit/s
by 2015
90% of households to have 100Mbit/s
by 2020
Fiber driving growth of 100Mbps+ access
April, 2014 TeliaSonera Business Development5
2010 2011 2012 20130%
10%
20%
30%
40%
50%
60%
High speed broadband Coverage in Sweden
100 MbpsFiberCabel-TV
% of population
TeliaSonera Business Development6
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
April, 2014
TeliaSonera Business Development7
Necessary to create a regulatory situation that enables deployment of fiber in increasingly expensive areas
April, 2014
Broadband target:
From 53% today to 90% 2020
Cost to deploy FTTH /SDU
Single dwelling units in Sweden
Increasingly expensive areas to deploy
Less expensive if optimal
deployment applied
TeliaSonera Business Development8
The regulatory challenge – From 1 access network (copper) to 200 local city networks (fiber)
April, 2014
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
YesYes
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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A new regulation is necessary to enable investments and secure freedom of choice
April, 2014
1. Predictability and flexibility in pricing
Replace price regulation with increased non-discrimination(EOI)
2. Reduced cost for rolling-out infrastructure
New EU-directive. Secure access to civil infrastructure (electricity, water)
3. Access to relevant bottlenecks
SMP is replaced with “Symmetric access regulation”
Regulation enabling
• Investment in new infrastructure
• Freedom of choice for all consumers
EOI is only a first step
TeliaSonera Business Development
TeliaSonera Business Development10
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
April, 2014
What will be different with EOI?
Same Product
- Same quality- Same
service(SLA)- Same contract
Same Price
- Same price list
- Same discount scheme
Same Informati
on- Same
interface for information
Same process
- Same order
interface,- Same process
from order to delivery
Same delivery
-Same delivery-Same
suppliers
Same billing- Invoice
generated in the same system
11 April, 2014 TeliaSonera Business Development
Same KPI´s that are measured in the same systems guarantee that EOI is working
= Not implemented today
Significant need for IT and process changes, in particular for Telia SP
April, 2014 TeliaSonera Business Development12
TS-TelSims
Current situation Wanted Position - EOI
TeliaSonera Business Development13
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
April, 2014
TeliaSonera Business Development14
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)
April, 2014
TeliaSonera Business Development15
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
April, 2014
Thank you!
