Presentation at the Workshop on Municipal Fiber Networks, October 24th 2011 in Ghent, Belgium. The workshop was organised by Ghent University - IBCN / IBBT. More information about this event can be found at http://http://events.ibbt.be/en/workshop-municipal-fiber-networks.

1. Socio-economic impact of FTTH in Sweden
crister. mattsson@acreo.se
2011-11-08 Crister Mattsson Acreo
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2. 44 per cent of all households and businesses in
Sweden have access to at least 100 Mbps
broadband
34 % of the homes have possibility to connect
to fiber
Fiber coverage 0- 83 %
40 municipal. have less than 1 %.
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3. Business Models
RSP
RSP
RSP
RSP
RSP
RSP
RSP
RSP
RSP
Single
OPCO
OPCO
OPCO
Operator OPCO
OPCO
NetCo
Netco Netco
Traditionel
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4. Urban Networks with competition
90
85
80
74
70
63
60
Procent
Percent
50
45
40
30
20
10
2004 2006 2008 2010
Year
År
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5. 08/11/2011 #5 Part of Swedish ICT

6. 08/11/2011 #6 Part of Swedish ICT

7. Investment decisions
Un-
captured
values
Roll Telco Roll
out roi out
cost cost Telco
return
yes No, but should be yes
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8. increased use
FTTH deployment
of ICT services
Very high access speed New infrastructure Direct economic activity
lower prices
for services
Sensor Competition
New/better networks Increased
services reduced traffic market value between SPs
congestion new business lower entry
Power grid model possible barriers
True cloud efficiency reduced
computing Video low upfront
surveillance ènvironment Functional investment learning
impact separation for NP and SP curves
Videoconf
Telepresence Distance
working Virtual labour
HD and 3D TV mobility
Profitability
VoD higher of NP and SP
employment
Network Profitability
gaming Perceived Of PIP
quality lower publ spending RoW
E-health of life higher tax revenue revenues
e-learning
E-
government efficiency lower burden Education
quality and cost
in PA of bureaucracy
Logistics, prod, reduced forced
management transparency migration
in PA corruption
discouraged
GDP
Democracy Ease to do
strengthened business
productivity
New ICT and
Dev. of new ICT competence traditional
technologies HR pool
companies
ICT Maturity: Customers for
entrepreneurship
08/11/2011
digital natives new services
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9. Is it possible to calculate the return for society ?
Cost for Ftth deployment
Effects of the Investment
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10. More fiber homes passed
gives more employment
and improved population
development
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11. • FTTH cost:
o fast-deployment scenario (investment during four years)
o Investment to connect all households not yet connected
source: companies active in FTTH installation in Sweden
• Return on investment calculated year by year, 1–5 years:
o economic activity directly related to construction
input-output multiplier approach
o savings in the municipal and regional-government costs for
data and telecommunications
extrapolation
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12. o increased GDP due to increased employment
means of multivariate regression analysis
o added value for end users
extrapolation of rates
o Enhanced population growth is also quantified, but is not
translated in terms of economic returns.
o Longer-term induced effects harder to measure as of today
o Causality was taken care of by introducing a time delay
between fibre deployment and observed effects
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13. 18000
16000
14000
12000
10000
AVKASTNING
8000
INVESTERING
6000
4000
2000
0
år 1 år 2 år 3 år 4 år5
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14. 18000
16000
14000
12000
10000
"IND. AVK."
8000
"DIREKT AVK."
6000
4000
2000
0
år 1 år 2 år 3 år 4 år5
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15. "ACK. AVKASTNING"
70000
"ACK. INVESTERING"
60000
50000
40000
30000
20000
10000
0
år 1 år 2 år 3 år 4 år5
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16. The City of Stockholm reduced the cost of
telecommunication with 30 % = 4,5 mill Eu /y
The regions of Norrbotten and Sthlm reduced the
cost of tele-communication with 50 %.
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17. Sthlm 15 M Eu - 30 %
~ nationell = 50 M. Eu
Region 50 %
~ nationell level = 27 M.Eu
The total cost for connecting the the rest of
Swedens total homes with fiber is ~ 4 Bill.Eu
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18. Installation cost for fiber lan in MDU av are 275 Eu / apartm.
275/20 y = 13,75 /y
Installation gives higher rent with 4,7 EU per m
= 56,4 Eu/y
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19. In Suburban Stockholm, the municipal
Sundbyberg have 83 % fiber
Arvidsjaur ( small municipal.) in remote north of
Sweden have 67 %.
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20. Conclusions
Increased fiber penetration gives significant
impact on severel indicators as population and
employment
Municipalities and regions can lower the costs of
communications
Fiberinstallation are profitable for MDU
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