2014 Sweden - Telecoms, IP Networks and Digital Media

Telecom revenue stable with moderate growth anticipated for 2015

Sweden’s competitive telecom market has shown strong growth in the mature mobile and broadband sectors, which have offset continuing declines in fixed-line telephony. The mobile sector has seen innovative spectrum use, including the use of 450MHz spectrum for LTE.

Sweden also enjoys one of the highest broadband penetration rates in Europe, Although DSL access still dominates, the number of subscribers is falling as customers migrate to fibre networks as these are progressively built out. Some resilience in the DSL sector is shown by operators investing in VDSL upgrades, though this is a short-term measure on the path to FttP. The fibre sector is also among the most vibrant, supported by an effective regulatory regime which had promoted and facilitated network access. The country now has one of the highest fibre-broadband densities in Europe, and access to faster services is enhancing consumer expectations of the potential of online services.

Considerable investment in mobile networks has also made mobile broadband a fast-growing area. The country was a forerunner in commercialising services based on LTE. With the closing down of the analogue network as early as 2007, spectrum in the 450MHz and 900MHz bands has long been put to mobile broadband use. Spectrum in the 800MHz and 1800MHz bands is also providing MNOs with additional capabilities for their LTE networks.

Key developments:

Tele2 facing regulatory hurdles in selling Norwegian subsidiary to TeliaSonera; TeliaSonera to end public pay phone service; Telecom revenue stable in 2013, year-on-year; TeliaSonera completes G.fast field trials to deliver 1Gb/s services over short-distance copper; Com Hem launches a 500Mb/s cable service and a 1Gb/s fibre service; TeliaSonera completes G.fast field trials to deliver 1Gb/s services over short-distance copper; 100Mb/s broadband connectivity available to more than half of all premises; Alcatel-Lucent contracted to build a national LTE network for Net 1 using the 450MHz band; TeliaSonera plans VoLTE services, signs up for Ericsson M2M platform; MNOs launch mobile wallet service JV; regulator assigns additional 1800MHz spectrum with generous terms; regulator’s market data to June 2014; telcos’ operating and financial data to Q4 2014; recent market developments

Companies mentioned in this report

Telenor, TeliaSonera, Tele2, Com Hem, PiteEnergi, BAS, Canal Digital, Viasat, Boxer, MTG, H3 Sweden, Telenor Sweden, Net 1