BROADBAND AND SOCIETY. Crister Mattsson

BROADBAND AND SOCIETY Crister Mattsson

ACTIVITIES Socio-economic return-on-investment studies Case studies and business modelling Broadband strategies, policy support

PROJECTS Swedish Broadband Forum Swedish City Networks Association (SSNF) Stokab (City of Stockholm) Oecd European Commission Swedish association of municipals and regions (SKL) SABO, Swedish association of housing organisations Regions and municipal 2016-09-20 3

DEVELOPMENT OF HIGH SPEED NETWORKS AND THE ROLE OF MUNICIPAL NETWORKS OECD SCIENCE, TECHNOLOGY AND INDUSTRY POLICY PAPERS, NO 26, OECD PUBLISHING, PARIS

DIGITAL AGENDA The target is that all EU citizens should have "basic broadband" access by 2013; and that by 2020 they should have fast coverage at 30 Megabits / second with half of households having 100 Megabit subscriptions or higher Full implementation of this updated Digital Agenda would Increase European GDP by 5%, In terms of jobs, 1.2 million jobs could be created through infrastructure construction. This would rise to 3.8 million new jobs throughout the economy in the long term.

WE NEED TO BE CONNECTED. OUR ECONOMY NEEDS IT. PEOPLE NEED IT. AND WE HAVE TO INVEST IN THAT CONNECTIVITY NOW." PRESIDENT JUNCKER, STATE OF THE UNION 2016

1. All main socio-economic drivers, such as schools, universities, research centres, transport hubs, all providers of public services such as hospitals and administrations, and enterprises relying on digital technologies, should have access to extremely high - gigabit - connectivity (allowing users to download/upload 1 gigabit of data per second). 2. All European households, rural or urban, should have access to connectivity offering a download speed of at least 100 Mbps, which can be upgraded to Gbps. 3. All urban areas as well as major roads and railways should have uninterrupted 5G coverage,

PROBLEMS IDENTIFIED: THE INCUMBENTS DOES NOT DO THE NECESSARY INVESTMENTS IN FIBER NETWORKS. ALTERNATIVE PUBLIC AND PRIVATE INVESTORS (INCLUDING LOCAL ADMINISTRATIONS AND PUBLIC UTILITIES) ARE OFTEN HELD BACK BY POLICY'S AND CAPITAL COSTS.

GUIDE TO HIGH SPEED BROADBAND A joint effort from M. Forzati and C. Mattsson from Swedish ICT ACREO; M. Corbett and D. Cullen from Independent Networks Co-operative Association (INCA); contribution from the regions involved into the Engage Project (High Speed Broadband for Rural Europe) Supervision of DGREGIO, DGCONNECT, DGAGRI and DGCOMP. Presents the investment alternatives when developing broadband; Advises public authorities how to take a long-term investment perspective; Provides alternatives: infrastructure, investment model, financial model/tools Suggests how to involve citizens, broadband developers, and how to monitor and evaluate broadband investment. Aims: Dacian Cioloş said: "I hope that the guide will help national and regional authorities make use of EU funds for further developing an innovative, knowledge-based businesses and human capital in rural areas, for example in helping help to close the rural-urban gap in access to high - speed internet facilities. European Broadband Portal: http://ec.europa.eu/digital-agenda/en/high-speed-broadband

To define a broadband plan (strategy) is essential. Questions to target: Why broadband: policy context Mapping the current situation Why intervene? Defining the goals Identifying stakeholders and establishing collaboration Strategy choices

Choice of the infrastructure type. Deploy a future-proof broadband infrastructure or upgrade the current infrastructure as an interim solution? Choice of the investment model. How involved shall the PA be in each aspect of the infrastructure (implementation, operation, ownership and management? business model. Vertically integrated or one of the open-network models? Which best maximises financial sustainability, coverage, competition? Choice of the financing tools. How to provide the necessary financing and what can actors contribute in terms of capital, spend and assets?

SP + NP SP + NP PIP + SP + NP SP + NP SP + NP NETWORK LAYERS AND BUSINESS MODELS Open access models Vertical integrated mode SP SP SP SP SP SP SP SP SP SP NP NP PIP + NP PIP PIP Vertically Integrated Operator Vertically Integrated Operator PLOM ALOM 3LOM LLU bitstream access

Infrastructure types and technologies available

DEVELOPMENT OF HIGH SPEED NETWORKS AND THE ROLE OF MUNICIPAL NETWORKS OECD SCIENCE, TECHNOLOGY AND INDUSTRY POLICY PAPERS, NO 26, OECD PUBLISHING, PARIS 14

The regression analysis of the 290 municipalities have been based on data for a 3-year period from 2010 to 2012, due to the availability of consistent statistical data. In total 870 sample data sets have been used in the regression analysis. In addition to fiber penetration, parameters that are statistically correlated (95% confidence interval) of employment are urbanization level, population growth over the past 10 years, average annual income and the number of new company registrations per 1 000 inhabitants. 15

The analysis shows that on average 10% higher fibre penetration is correlated with 1.6% higher rate of employment The analysis show that on average a 10% increase in fibre penetration reduce the driving distance per year and per inhabitant by 135 km, given that all the other significant factors remain unchanged. 16

Peterborough, United Kingdom Amsterdam, Appingedam, Schiermonnikoog, Netherlands Vejen, Denmark Stockholm, Hudiksvall Sweden Chattanooga, Tennessee, United States Kamiyama Tokushima, Japan Northland Whangarei, New Zealand National Broadband Network, Canberra, Australia

http://www.oecd-ilibrary.org/science-and-technology/development-of-high-speed-networksand-the-role-of-municipal-networks_5jrqdl7rvns3-en 18

Källa: Svenska Stadsnätsföreningen

SWEDISH MARKET LANDSCAPE Retail Service Providers Internet Service Providers Media & Content Companies Public service Communication Operators New Independent Operators Broadband Companies Incumbent Operators Network Operators Real Estate Companies Local Communities Power Companies

INVESTMENT AND ROI 16000 14000 12000 10000 8000 6000 4000 2000 0

OPEN NETWORK MODEL RSP RSP RSP End user private ISP ISP SP End user company C.O. Communication operator Active infrastructure Switches System Passive infrastructure N.O. Regional/City network Access/building network Fiber Fiber

HOMEPAGE - EXAMPLE 2016-09-20 27

Roll-out cost Telco return Un-captured values WHY SOCIO- ECONOMIC STUDIES OF HIGH-SPEED BROADBAND Revenue from Internet service Revenue from telephony service Revenue from TV service

increased use of ICT services FTTH deployment Very high access speed New infrastructure lower prices Direct economic activity for services New & better services True cloud computing Videoconf. Tele-presence HD and 3D TV VoD Network gaming E-health E-government Logistics, prod, management efficiency in PA Sensor networks transparency in PA Power grid efficiency Distance working e-learning reduced traffic congestion Video surveillance reduced bureaucracy Democracy enhanced Perceived quality of life Increased market value Ease to do business reduced environment impact Virtual labour mobility + tax revenue - public spending Education quality and cost new business models Functional possible separation higher employment Competition between SPs low upfront investment for NP and SP RoW revenues GDP lower entry barriers Profitability of NP and SP Profitability Of PIP learning curves reduced forced migration Dev. of new technologies productivity ICT competence HR pool New ICT and traditional companies ICT Maturity: digital natives Customers for new services entrepreneurship

Ökat användande av IKT tjänster FTTH utbyggnad Snabb uppkoppling Ny infrastruktur Lägre priser på Direkt ekonomisk aktivitet IKT-tjänster Nya & bättre tjänster Äkta molntjänster Videokonf. Tele-närvaro HD och 3D TV VoD Nätverks spel E-hälsa E- myndigheter Logistik, prod, ledning Effektivitet i PA Sensor nätverk El -näts effektivitet Transparens i PA Distans arbete e-utbildning Minskad trafik trängsel Video övervakning Minskad byråkrati Utvecklad Demokrati Ökat livskvalite t Ökat marknadsvärde Bättre affärs möjligheter Minskad Miljöpåverkan Virtuell arbets mobilitet Lägre offentliga utgifter Utbildningskvalitet och kostnader Nya affärsmodeller Funktional possible separation Högre sysselsättning Konkurrens mellan tjänsteleverantörer Lägre initiala investeringar for NP och SP Tillstånd och mark intäkter BNP Lägre introduktions barriärer lönsamhet för NP och SP lönsamhet för PIP Minskning av utflyttning Inlärnings utveckling Utveckling av nya Tekniska lösningar Produktivitet ICT kompetens arbetskrafts pool Nya företag ICT mognad : digitala medborgare Kunder för nya tjänster Entreprenörskap

Ökat användande av IKT tjänster FTTH utbyggnad Snabb uppkoppling Ny infrastruktur Direkt ekonomisk aktivitet Lägre internetpriser Nya & bättre tjänster Äkta molntjänster Videokonf. Tele-närvaro HD och 3D TV VoD Nätverks spel E-hälsa E- myndigheter Logistik, prod, ledning Effektivitet i PA Sensor nätverk El -näts effektivitet Transparens i PA Distans arbete e-utbildning Minskad trafik trängsel Video övervakning Minskad byråkrati Utvecklad Demokrati Ökat livskvalite t Ökat marknadsvärde Bättre affärs möjligheter Minskad Miljöpåverkan Virtuell arbets mobilitet Lägre offentliga utgifter Utbildningskvalitet och kostnader Nya affärsmodellerp Funktional ossible separation Högre sysselsättning Ökad konkurrens Lägre initiala investeringar for NP och SP Tillstånd och mark intäkter BNP Lägre introduktions barriärer lönsamhet för NP och SP lönsamhet för PIP Minskning av utflyttning Inlärnings utveckling Utveckling av nya Tekniska lösningar Produktivitet ICT kompetens arbetskrafts pool Nya företag ICT mognad : digitala medborgare Kunder för nya tjänster Entreprenörskap

FÖRETAGANDE I kommuner med 10 % högre fiberpenetration skapas i snitt 8 fler nya företag per 100 000 invånare (780 i hela Sverige). Vad orsakar vad?

SYSSELSÄTTNING En kommun med 10 % högre fiberpenetration har i snitt 1,2 % högre sysselsättning Vad orsakar vad?

BILÅKANDE I kommuner med 10 % högre fiberpenetration körs i snitt 135 km mindre per kapita, per år. Det betyder 1,3 miljarder kilometer i Sverige; eller 224 tusen ton CO 2 Vad orsakar vad?

PRISER OCH KONKURRENS Ju fler operatörer det finns på ett nät, desto lägre blir priset Öppna stadsnät leder till ökad konkurrens och lägre konsumentpriser

The experience in Västerås (pop. 140,000) pilot by 300 of 3000 saved 25 milj /y Fixed video communication Remote management of services Mobile video communication Night safety surveillance

Reduced transports Less time spend Reduced needs 20 % 30 % 45 % 85 % 10 % 35 % 85 % 10 % 35 % 95 % 30 % 0 %

The yearly net savings in the delivery of home care, generated by digital services can reach up to: 4 million for a sparse rural (pop 8,000; 2inh/km 2 ) 25 million for a mid-size city (pop 90,000) 68 million for a large city (pop 500,000) by 2020 The cumulated net saving for the whole of Sweden in the 2014-2020 time period can be up to 6 billion

BROADBAND POLICY FOR MUNICIPALITIES AND REGIONS Connect everything with fibre Operator-neutral networks Include broadband in urban planning 46 2016-09-20

crister.mattsson@acreo.se +46 70 092 77 92