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 user company ISP SP Active infrastructure Passive infrastructure End user private Regional/City network Access/building network Fiber RSP N.O. C.O. Switches System

OPEN NETWORK MODEL City Network Operator Services Network Acess Network Communication Operator Service Portfolio Network Acess Network City Enterprise Telecom Carrier Cable TV Operator Open on dark fiber level service level Open on service level

citynetwork Access network Operator Active equipment Exchange/ interconnection Property node The interface between access and citynetw

8 Co-operative 2 ON Co-operative 1 AP Operator AP Serviceprovider 4G Village network iniative Co-operative owned network Operator lease the network

PRICE FOR DARKFIBER Figure 12 - Jämförelse av företagspriser (månadspris för 100 Mb/s beräknat pa ̊ 36 ma ̊ nadsavgifter och anslutningsavgift) i Stockholm och Köpenhamn; källa: United Minds (2011)

ACC.INVESTMENT AND ROI 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 Roll-out cost Telco return Un-captured values

Perceived quality of life Perceived quality of life reduced environment impact reduced environment impact higher employment higher employment Virtual labour mobility Virtual labour mobility reduced forced migration reduced forced migration entrepreneurship Dev. of new technologies Dev. of new technologies increased use of ICT services increased use of ICT services Profitability of NP and SP Profitability of NP and SP Profitability Of PIP Profitability Of PIP Education quality and cost Education quality and cost lower publ spending higher tax revenue lower publ spending higher tax revenue Democracy strengthened Democracy strengthened corruption discouraged corruption discouraged lower burden of bureaucracy lower burden of bureaucracy e-learning Distance working transparency in PA transparency in PA efficiency in PA efficiency in PA Competition between SPs Competition between SPs lower prices for services lower prices for services lower barriers Very high access speed New infrastructure Direct economic activity FTTH deployment True cloud computing True cloud computing HD and 3D TV VoD HD and 3D TV VoD Videoconf Telepresence Videoconf Telepresence E-health E- government Logistics, prod, management Logistics, prod, management Network gaming Network gaming New/better services New/better services Ease to do business Ease to do business productivity learning curves learning curves ICT competence HR pool ICT competence HR pool Customers for new services Customers for new services ICT Maturity: digital natives ICT Maturity: digital natives RoW revenues RoW revenues Increased market value Increased market value Functional separation Functional separation new business model new business model low upfront investment for NP and SP low upfront investment for NP and SP New ICT and traditional companies New ICT and traditional companies GDP Sensor networks Sensor networks reduced traffic congestion Video surveillance Power grid efficiency

FTTH deployment FTTH/FTTx penetration in 2007 Change in employmnent (adjusted) Higher employment 10% 0.1% 600 M€ 120 M€/year

FTTH deployment Competition between SPs Competition between SPs lower prices for services lower prices for services Increased market value Increased market value new business model possible new business model possible Functionally separated open access New 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 Mattsson