1. Swedish Post and Telecom Authority Regulatory challenges for tomorrow – in the light of speed Göran Marby Director-General Swedish Post and Telecom Authority BEREC Chair 2014

2. An inclusive society Exclusion AccessAccess Pay Vote Watch Book Study Work AccessibilityAccessibility

3. Ongoing technological and market developments We are moving from specific networks for specific services to ip-based networks for all services The provider of the network infrastructure does not have a monopoly of providing services anymore! One IP- network can transport all services PSTN/GSM-networks for voice Television networks for TV Computer networks for data Terrestrial audio broadcasting networks

4. Consumers demand … Speed Access everywhere on every device Mobility Quality/capacity … to get All content available through the Internet

5. The consumer can be expected to be: less sensitive to the price of a high quality access, and more sensitive to the price of the content.

6. Market impacts and developments Pressure on business models of traditional operator Push towards increased horizontal specialization New ways to make revenues in a disintegrated value chain

7. Pressure on traditional revenue

8. Voice seems to have reached its peak while mobile data is booming Number of voice minutesData in mobile networks Source: Swedish telecommunications market, first half-year 2013

9. Price development mobile calls in Sweden Source: Strategy Analytics, Teligen and PTS Same price for 100, 300 and 900 calls/month in 2013 – more common with flat rate subscriptions calls

10. Value chain – with different risk at each level Content providers Service providers Infrastructure owners MobileMobile

11. Different business models and profits? Content providers 14,0 % Content providers 14,0 % Service providers 9,9 % Service providers 9,9 % Infrastructure owners 6,1 % Infrastructure owners 6,1 % MobileMobile Own calculations of representative sample of companies. Net operating profit in relation to total invested capital. Data source: Bloomberg 8,0 %

12. Competitive and regulatory challenges Vertical disintegration and horizontal specialization implies new competitive bottlenecks on the different levels Future recommendations on relevant markets need to identify and incorporate a shift in competitive bottlenecks

13. Examples of competitive bottlenecks Blockage through property rights Accessing enough and suitable spectrum Investment capital adjusted to risk levels Accessing the end users (last mile)

14. Maximise benefit for society by spectrum management Calculate and maximise societial benefit to meet the needs for society and citizens Use spectrum more efficiently Give the market better prequisites to fulfill the increasing demand for wireless services

15. Coverage requirement in the 800 MHz award in Sweden Six national licenses, one with coverage requirement License holder Net4Mobility shall use up to 300 MSEK to cover specific households and businesses who lack basic broadband access PTS assembles an annual list of addresses to be covered Service and technology neutral licence conditions

16. To conclude We are in the middle of big changes in consumer demand, technology and business models We must have a creative approach when taking the next steps towards future regulation!

17. Thank You!

18. Investments in fixed networks by operators and customers Consumer investments Investments in fixed networks

19. Mobile investments by operators and customers