Publication Overview
This report provides a comprehensive overview of trends and developments in Sweden’s telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:
- Market and industry analyses, trends and developments;
- Facts, figures and statistics;
- Industry and regulatory issues;
- Infrastructure;
- Major players, revenues, subscribers, ARPU, MoU;
- Internet, VoIP, IPTV;
- Mobile voice and data markets;
- Broadband (FttH, DSL, cable TV, wireless);
- Convergence and digital media;
- 3G subscriber and mobile ARPU forecasts to 2015;
- Broadband market forecasts for selective years to 2020.
Key developments:
Telecom revenue expected to show continued improvement in 2011 following 4% growth in 2010; Sweden’s GDP expected 3.8% growth in 2011; TeliaSonera commits to SEK8 billion FttP investment in Nordic and Baltic markets; government’s bid to sell stake in TeliaSonera defeated in Parliament; Com Hem extends 200Mb/s cable broadband across its footprint; TeliaSonera to spend SEK500 million upgrading 800,000 connections with VDSL2; Com Hem sold to BC Partners; regulator finds that 9% of mobile data users send 87% of traffic; government raises SEK2.05 billion from 800MHz spectrum auction; Telenor Sweden and H3 upgrade shared 3G network with NSN; H3 contracts to provide world first LTE TDD/FDD dual-mode network; regulator sets out generous auction terms for additional 1800MHz spectrum; World Economic Forum (WEF) ranks Sweden the world’s most connected economy; regulator’s 2010 market data, operator data for H1 2011.
Companies covered in this report include:
Telenor, TeliaSonera, Tele2, Com Hem, PiteEnergi, BAS, H3 Sweden, Net 1, Canal Digital, Viasat, Boxer, MTG.
Researcher:- Henry Lancaster
Current publication date:- August 2011 (10th Edition)
Executive Summary
Sweden's 800MHz spectrum auction to expand LTE availability to rural areas
BuddeComm’s quarterly publication, Sweden - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Sweden. It provides an analysis on the latest market developments, as well as data from the regulator’s 2010 market report and operator data for H1 2011.
Sweden has fared better than most countries in weathering the ongoing economic downturn. GDP fell 5.3% in 2009 in the wake of the 2008 crisis, but recovered quickly, growing at some 5.5% in 2010 and by an estimated 3.8% in 2011. This performance has been mirrored in the country’s telecoms market: telecoms revenue increased 3.8% in 2010 to SEK53 billion, following a number of years during which growth was stagnant. The market has continued the trend for consumer migration to mobile voice and data services at the expense of fixed-line telephony. More calls are now made via mobile networks than the fixed network, while there are almost as many mobile broadband subscriptions as there are via the copper network (xDSL).
Sweden was the first country in Europe to develop a broadband policy, as early as 1999. The country now has one of the highest broadband penetration rates in the region: the country was listed as the world’s most connected economy in 2010, while Stockholm has been listed as one of the top ‘intelligent communities’, based on broadband deployment, the ability to create and sustain a knowledge-based workforce, digital inclusion, innovation, marketing and advocacy.
Near-comprehensive DSL coverage is complemented by excellent urban cable infrastructure and significant fibre networks which attract high-end broadband subscribers. Stockholm’s open access network provided by Stokab has become an inspiration for similar municipal-led networks, enabling providers to offer services far cheaper than if they had built their own networks. By 2013 about 90% of homes and business will be covered by FttH. Numerous networks open to a range of content and service providers have been built by organisations other than telcos, including municipalities, regional governments, housing associations and local utilities. Municipal and local area networks have quadrupled in reach since 1999.
Mobile phone penetration remains among the highest in the EU, while 3G services have been launched by four operators. MNOs have been at the forefront of LTE developments following TeliaSonera’s world first commercial launch at the end of 2009. Despite market saturation subscriber growth remains steady, particularly in the 3G sector. This has been mirrored by greater consumer take-up of mobile data services made possible by significant network investment. In addition, consumers are increasingly moving to mobile telephony for calls: mobile networks now carry the majority of traffic.
Sweden also has one of the most developed digital TV markets in the Nordic region. The government awarded multiplex licences as early as 1998. Multiplex ownership is separated from content broadcast over them: Teracom built, owns and operates the digital TV multiplex. When the DTTV network was launched in early 1999, Sweden was only the second country in Europe to have the system. The five-stage phased analogue switch-over process was completed by late 2007, ahead of schedule.
Key telecom parameters – 2010; 2012
|
Sector
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2010
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2012 (e)
|
|
Broadband:
|
|
Fixed broadband subscribers (million)
|
2.99
|
3.12
|
|
Fixed broadband penetration rate
|
38%
|
43%
|
|
Mobile broadband subscribers (million)
|
2.9
|
3.9
|
|
Subscribers to telecoms services:
|
|
Fixed-line telephony (million)
|
4.3
|
3.9
|
|
Mobile phone (million)
|
12.58
|
13.75
|
|
Mobile SIM penetration (population)
|
133%
|
141%
|
(Source: BuddeComm)
Market Highlights
- The number of bundled subscriptions increased 15% in 2010, year-on-year, reaching 1.4 million. Growth is expected to be consistent in coming years as consumers take advantage of cheaper offers from operators able to exploit their upgraded networks. The range of offers is unlikely to widen, given that the most popular combination is broadband with fixed telephony, which represents over half of all bundled subscriptions. In triple play, fixed telephony with fixed broadband and TV represent almost 40% of all bundles. The number of quad play subscribers has doubled each year since such offers were introduced in 2008.
- The award of 15-year national licences in the 800MHz band in 2011 has enabled MNOs to extend their rural broadband capabilities, utilising LTE technology. This will go far in meeting the government’s Broadband Strategy objectives. Sweden is also among the leading EU countries to use 900MHz spectrum for 3G services.
- Mobile data use has grown considerably since 2007, and is set to grow more rapidly during the next few years as LTE and HSPA networks expand across the country Mobile data use is expected to increase 50% in 2011, though this will not be mirrored by a similar increase in mobile data revenue for operators given existing competition and regulatory measures on data tariffs.
- Continuing constraints on mobile networks, despite the greater availability of spectrum, may encourage MNOs to introduce business models adjusting to customer demand, with pricing tiered based on speed and usage.
This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Sweden. It provides further information on:
- Market liberalisation and regulatory issues;
- The impact of the global economic crisis;
- Telecoms operators – privatisation, acquisitions, new licences;
- Mobile data market developments in coming years in light of spectrum auctions and new license awards;
- 3G developments, regulatory issues and technologies including HSPA and LTE;
- Broadband migration to an FttH architecture;
- Historical and current subscriber statistics and forecasts;
- ARPU statistics and forecasts.
Data in this report is the latest available at the time of preparation and may not be for the current year.
