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
1
April, 2014
TeliaSonera Business Development
Vi
Swedish Digital Agenda: Best in the world in using the
opportunities from the digitalization
2
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
3
April, 2014
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
4
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
5
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
6
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
7
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)
8
April, 2014
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
9
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
10
April, 2014
TeliaSonera Business Development
Significant need for IT and process changes, in particular for
Telia SP
Current situation
TS-TelSims
11
April, 2014
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
12
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)
13
April, 2014
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
14
April, 2014
TeliaSonera Business Development
Thank you!