New regulation enabling Sweden’s digital agenda Brussels, Robert Liljeström April, 2014.
Transcript of New regulation enabling Sweden’s digital agenda Brussels, Robert Liljeström April, 2014.
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 Mbps
Fiber
Cabel-TV
% of population
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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
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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
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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
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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
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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
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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
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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!