1
MNO ROLLOUT Joachim Horn
2
Spectrum availability
Targeted quality and performance
Expected traffic
Population density, distribution and migration pattern
Topography
Type of buildings
Key criteria for designing coverage
3
SWE NL
Total surface (km2) 450,300 41,540
Non water or forest 28.5% 72.4%
Population 9,5 M 16,7 M
Population per km2
non forest / water**
73.6 555.0
Demography and geography impacts
coverage
50%
100%
Sweden
Netherlands
Po
pu
latio
n c
ove
rage
*
30% Sites
15%
*Approximate
Source: WorldBank.org 2011
**Assuming no inhabitants in forest or water areas
4
Sig
na
l s
tren
gth
Distance [km]
800MHz 2600MHz
Tele2 has a very powerful spectrum position…
Pe
ne
tra
tion
loss
Wall
800 2.6
800 2.6
Coverage Km2
Ou
tdo
or
Ind
oo
r
Signal loss when covering indoor
10 MHz in 800 MHz
Ideal for coverage
20 MHz in 2.6 GHz
Ideal for capacity
Difference indoor/outdoor
… enabling a competitive and cost efficient rollout
5
0%
25%
50%
75%
100%
Time
Network planning done, site sharing deal
signed, suppliers chosen and rollout started
Approx. 3,500 sites for initial rollout
Priority to achieve full coverage
Competitive capacity, speed and quality
First sites being finalized
* Approximate
Population coverage over time*
6
Leveraging synergies with our backbone
and FttH
LTE
POP
Consumer
Small business
Microwave = Tele2 infrastructure
= Rented from Reggefiber
7
Principles of site sharing with T-Mobile NL
RRH*
Antenna
T-Mobile base
station
Tele2
base
station
Backhaul Tele2 core
network
T-Mobile core
network
2G
3G
4G
4G
X
X
X
Passive sharing of infrastructure and antennas
Sharing of backhaul, power and field services is optional
Majority of sites will be shared with T-Mobile, first sites available soon
*RRH = Remote Radio Head
8
RAN
Core
IMS/Voice over
LTE platform
Network procurement done
Mainly price
Similar quality and capabilities of
different vendors
Vendor capabilities
Vendor experience
Existing references
Vendor experience
Vendor flexibility
Equipment Vendor Main decision criteria
9
SE 2003 SE 2008 SE 2013 SE share2013
NL 2013
Sweden reference
Rollout versus license investments
NL
MEUR
161 172
License Network rollout
MEUR
CAPEX for initial rollout* Comparison radio equipment cost
MEUR
Cost per
site
• Competitive equipment prices keep investments low
*Approx. 3,500 sites
10
LTE supports carrier grade VoIP, i.e. Voice
over LTE
First carrier grade voice over IP-solution in
mobile
Future proof “Over-The-Top” competitive
service
Generally available from beginning of 2014
(standardization, chipsets)
Dec. 2012: Tele2 first live VoLTE trial in EU
• Tele2 targets to offer VoLTE early
11
VoLTE brings substantial benefits
Better sound
Less delay
Up to 6x faster establishment times
Spectral efficiency
No national roaming costs
12
Preparing Tele2’s customer base for LTE
US and Asian operators to launch
VoLTE within next 12-18 months
0%
10%
20%
30%
40%
50%
60%
Top tier handsets likely to support
VoLTE from 2014
Potential upgrade of existing LTE
handsets with VoLTE
LTE enabled handsets sold by Tele2 NL
Jul 2012 Jul 2013
• More than 50% of handsets sold in July 2014 are already LTE enabled
13
How we will ensure quality
Full LTE
coverage
with best
in class
ambition
National
Roaming
Agreement
Building our own network based on newest technology without legacy
Ambition to achieve a full LTE coverage as soon as possible
Keep our customers in the Tele2 network throughout the country
Quality design is based on KPI:s which beats best in class in Sweden
Seamless coverage experience for Tele2 customers (2G and 3G)
Similar setups working very well in Tele2 Norway and Croatia
Proven CSFB* technology to deliver voice (2G and 3G) to 4G
customers
Tele2 was the first operator in Europe to launch CSFB (2011)
*CSFB = Circuit Switch Fallback
14
Tele2 will have a very competitive
IT landscape
New IT
architecture
Ahead of the pack – legacy free
Flexible best of breed system, fully agile approach
All current and future business needs, fixed and mobile
Customer benefits
Transparent and clear communication to the customers
Online focus: My Tele2, customer portals and apps
Real-time information for consumption and charging
• Architecture defined, suppliers chosen and development started
15
Key take-aways
In control for best customer experience
Building our own network
Implementing a competitive IT landscape
All legacy free
Planning done, suppliers chosen, implementation started
Initial rollout of 3,500 sites, most of which are shared
Supporting business success with competitive cost position
Working on early launch of VoLTE for true 4G experience
16
Q&A PART 2
Günther Vogelpoel
Joachim Horn