1. Socio-economic effects of FTTH/FTTx in Sweden Crister Mattsson Acreo, Stockholm

2. Broadband networks Municipal and regions 175 urban networks (290 municipals) + 200 cooperative village project New businessmodels Examples : Stockholm: 100 operators + 500 enterprises Säffle: 15500 inh, 13/sqkm open network, 5 isp, 5 tv, 3 tel.

3. Open network model 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

4. FTTH costs and benefit calculation Internet service revenue Telephony service revenue TV service revenue Roll-out cost Telco return Un-captured values Profit from copper

5. Virtual labour mobility Virtual labour mobility entrepreneurship FTTH deployment Very high access speed Distance working New ICT and traditional companies New ICT and traditional companies increased use of ICT services increased use of ICT services ICT competence HR pool ICT competence HR pool Customers for new services Customers for new services ICT Maturity: digital natives ICT Maturity: digital natives Direct economic activity Direct economic activity Higher employment New & better services New & better services True cloud computing True cloud computing HD videoconf Telepresence HD videoconf Telepresence Logistics, prod, management Logistics, prod, management Ease to do business Ease to do business

6. FTTH deployment Higher employment Our question: What actually happened after fibre was deployed? The tool: Multivariable regression analysis of all of Swedens 290 municipalities The data: Fibre penetration in 2007 Employment, tax rate, etc. 2007-2010

7. FTTH deployment FTTH/FTTx penetration in 2007 Change in employmnent 2007-2010 (adjusted) Higher employment 10% 0.1% 600 M 120 M/year

8. New & better services New & better services entrepreneurship increased use of ICT services increased use of ICT services Distance working Very high access speed FTTH deployment True cloud computing True cloud computing HD videoconf Telepresence HD videoconf Telepresence Ease to do business Ease to do business ICT competence HR pool ICT competence HR pool Customers for new services Customers for new services ICT Maturity: digital natives ICT Maturity: digital natives New ICT and traditional companies New ICT and traditional companies Logistics, prod, management Logistics, prod, management E-health E-government Perceived quality of life Perceived quality of life e-learning reduced forced migration reduced forced migration

9. 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 assn and housing companies 5/month/apartment Example: Price in most Swedish fibre networks: Symmetrical 10 Mb/s: 15-25/month Symmetrical 100 Mb/s: 20-35/month Examples: Saving in data and telecom for: City of Stockholm: 30% Jönköping municipality: 15% Stockholm region: 50% Region Norrbotten: 50%

10. Quantifying the values

11. Capturing the Uncaptured Values: Towards a New Business Model identify all main benefits, their beneficiaries and their mutual interactions Develop a business model including all major beneficiaries in the value chain Keys to a successful FTTH project:

12. Crister Mattsson crister.mattsson@acreo.se +46 70 092 77 92 Marco Forzati marco.forzati@acreo.se +46 70 752 77 53