team stockholm
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TRANSCRIPT
GOVERNING THE FUTURE
Maggie Zhang, Livio Quintavalle, Joe Sutanto, Dimitrios Vlachopoulos
Team Stockholm
NOTE:This presentation was created by a team
of MBA students for educational purposes and in no way reflects the
views and beliefs of Ericsson.
GOVERNING THE FUTUREVISION
CLIENTS
GOVERNMENTS TO BECOME OUR MAJOR CLIENTS
OPERATORS LOSING POWER. FEE IS NOT ERICSSON’S CONCERN
FEE STRUCTURE
UNATTRACTIVE MARKET FOR ERICSSONROLE OF APPLICATIONS
INTEGRATED SOLUTIONS TO GOVERNMENTS Multimedia, Medical, Transportation, Urban Development
SERVICE ECOSYSTEM
UTILITIESEnergy Smart Grid
SECTOR
AUSTRALIAREGION
INDUSTRY OVERVIEWSECTION I
SMART GRIDSECTION II
IMPLEMENTATIONSECTION III
CONCLUSIONSECTION IV
GOVERNING THE FUTUREVISION
CLIENTS
GOVERNMENTS TO BECOME OUR MAJOR CLIENTS
OPERATORS LOSING POWER. FEE IS NOT ERICSSON’S CONCERN
FEE STRUCTURE
UNATTRACTIVE MARKET FOR ERICSSONROLE OF APPLICATIONS
INTEGRATED SOLUTIONS TO GOVERNMENTS Multimedia, Medical, Transportation, Urban Development
SERVICE ECOSYSTEM
UTILITIESEnergy Smart Grid
SECTOR
AUSTRALIAREGION
Appendix
24
Ericsson’s Positioning in the Value Chain
Vodafone’s Services
Governments as Clients
• Canada– Budget 2009 provides $225 million over three years to Industry Canada to develop and implement a strategy
on extending broadband coverage to all currently unserved communities beginning in 2009-10.• Chile
– The development is expected to cost US$100 million, 70% of which will be provided by the government through the Telecoms Development Fund.
• Belgium– Government owns over 50% of the incumbent telco provider Belgacom
• Portugal– In January 2009, Portugal's government announced an 800-million-euro credit line for the roll-out of next-
generation broadband networks in the country• Sweden
– Total state governmental funding $817 million (5.25 billion SEK)• UK
– £200m from direct public funding• South Korea
– The central government will put up $1.1 billion (1.3 trillion won)
• Singapore– The Singaporean government will provide up to S$750 million (US$520 million) in grants to build the Next
Generation National Broadband Network
Transition to Fixed Mobile
Smart Grid Potential Partners
Financials
Australia2011 2012 2013 2014 2015
Fiber Optic ($m) $4,700 $5,000 $5,200 $5,400 $5,500Smart Grid ($m) $200 $250 $300 $350 $400
$4,900 $5,250 $5,500 $5,750 $5,900
Global2011 2012 2013 2014 2015
Fiber Optic ($m) $46,804 $49,144 $51,601 $54,181 $56,890Smart Grid ($m) $28,900 $34,000 $40,000 $46,000 $52,900
$75,704 $83,144 $91,601 $100,181 $109,790
Source• Australia fiber optic: Australian government media release - $43bn amortised over 8 years ($5.4bn/annum)• Australia smart grid: Technology Industry Association - $200m this year, total of $11bn over the next 20 years• International fiber optic: Telecommunications Industry Association & US National Cable and Telecommunications Association• International smart grid: Morgan Stanley for 2013 and grown at a CAGR of 15% per annum
Australian Energy Suppliers
Actew AGLAGLAurora EnergyAustralian Power & GasClick EnergyCountry EnergyEnergy AustraliaHorizon PowerIntegral EnergyJackgreenNeighbourhood EnergyOrigin EnergyPower & Water CorporationPowerDirectQueensland ElectricityRed EnergySimply EnergySouth Australian ElectricitySynergyTRUEnergyVictoria Electricity
California and Idaho Model
Historically: pay the utility based exclusively on how much more energy it sells and how many new power plants it builds
Decoupling: • Regulators compare a utility’s actual energy sales with its predicted sales• Independent auditor determines the saving• Regulator reimburses utility for out of pocket losses and adds a reward in proportion to reductions in customer costs.