Market - Technology - Policy Investments and regulatory challenges

Bo Andersson, Ph.D.

Chief Economist

The Swedish Post and Telecom Authority (PTS)

Capacity Building Workshop

Towards Broadband For All

Cape Town

5 September, 2014

Swedish –Angolan ICT Conference

Luanda

8-9 May, 2013

Agenda

• PTS and overall policy goals

• Dealing with the rural policy challange

• The Results

• Market Developments

PTS and overall policy goals

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Presenting PTS We shall:

• work to ensure that everyone has access to good telephony, broadband and postal services

• work to achieve functioning competition in the market, resulting in a good range of options and low prices for consumers

• ensure that limited resources, such as frequencies and numbers, are assigned and managed efficiently

• ensure that networks and services are reliable and secure

Sweden – a sparsely populated country

• About 9 million inhabitants

• 85 percent of population inhabits the south

• Sparsely populated rural areas

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Dealing With The Rural Policy Challange

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Governments’ strategic goals

• Sweden should have world class-broadband

• 90 percent of households and businesses should have access to 100 Mbit/s by 2020

• All households and businesses should have the possibility to use public e-services through broadband

• Broadband universal service (1 Mbit/s)

• Market driven development

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Rural vs Urban areas Similarities and Differences

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Needs, more or less the same

Income, moderate gap

(purchasing power)

Preferences, nearly identical

(buying will)

Population Density in Sweden Common Features

Urban Areas Rural Areas

3,5

pers/km2

1500

pers/km2

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Where is the

“market”?

The Operators View on Rural Areas

” In rural areas where the market

is not enough, villagers must

build their own networks in

order to get connected. ”

” Cooperation has always been the

key. Villagers in rural areas built

their own electricity and telephone

networks . Now it is time to roll out

broadband. ”

The Swedish BroadBand Forum 14 actors Steering board – 100 Organisations involved

Market

players

Government

stakeholders

Regional and

local associations

Rural and

consumer

advocates

The Results Total outcome of all projects

800 Local Action Groups Have Built

Their Own Networks

Approx. 100 000 Households Have

Been Connected (FTTH)

8 000 Rural villages To Go

Success factor Cooperation among actors

Civil

Society

Market

Players

Governmental

Agencies

Market Developments

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Communication is constantly finding new ways

• Traditional

Voice, e-mail, SMS/texting

• Today

Chat & social media

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Convergence is happening now

In the future

Until now

PSTN/GSM-networks for

voice

Television networks for

TV

Terrestrial audio

broadcasting networks

Computer networks for

data

Everything

becomes IP

(internet).

One network can

transport all

services.

Challenges in the future

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”The perfect storm”

• ”All-IP” – a technical evolution.

• Wireless takes over.

• Need for a change of business models.

• ”The perfect storm” – when these paradigm shifts occur at the same time.

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Thank you for your attention!

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