2009 Sweden - Telecoms, IP Networks, Digital Media and Forecasts

BuddeComm’s annual 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 Ireland.

Sweden’s telecom market in 2010 is characterised by high mobile and broadband penetration, even by European standards. The country was the first in Europe to complete the switch to digital TV broadcasting, and the first to assign the digital dividend 470-790MHz band to accommodate multiplexes for DTTV. The mobile sector has seen similarly innovative spectrum use, with extensive network upgrades and the world’s first commercial development of LTE mobile technology.

Swedes are thus enviably placed to exploit spectrum and technologies as 2010 and 2011 progress. The country’s significant fibre networks together with LTE deployments which will expand nationally during the year, will make feasible the government’s plan to provide 45% of all households and businesses with access to symmetrical 100Mb/s broadband by 2015, rising to 90% by 2020. This broadband infrastructure deployment remains among the most ambitious in Europe.

Overall telecom market revenue has fallen slightly since 2007, mainly due the effects of competition as well as, in the strong mobile sector, regulated tariffs for roaming and interconnection. The economic crisis, which led to a near 5% fall in GDP in 2009, will have residual effects in 2010 as consumers continue to reign in discretionary spend. This will encourage operators to cut consumer prices further and to develop business strategies to discourage consumer churn. The buoyant bundled services sector is likely to gain strength as a result.

Sweden – key telecom parameters – 2008; 2010

(Source: BuddeComm)

Key highlights

·         Mobile phone penetration in Sweden far exceeds the EU average. Growth during the next few years will be entirely from the 3G sector. This uptake will be mirrored by greater consumer use of mobile data services made possible by significant network investment which nay reach some €195 million in 2010, principally in extending HSPA and LTE capabilities nationally.

·         The value of the fixed-line sector will continue to fall in 2010 under the impact of cheaper mobile call rates, the wider use of mature and commercialised VoIP which has become a standard bundled service. By the end of 2010 more than a third of Swedes may have dispensed with fixed-line telephony.

·         During 2010 the regulator planned to assign the 790-862MHz frequency band on a technology and service neutral basis. Licensees are likely to be required to provide coverage in areas of poor broadband access. In conjunction with the use of 900MHz and 450MHz spectrum for mobile broadband, Sweden remains among the best served in Europe for mobile broadband.

·         The government’s broadband strategy has called for 2Mb/s services to all households and businesses by 2010, and symmetrical 100Mb/s broadband to 45% of households by 2015 and to 90% by 2020. A combination of astute government financial and regulatory support, together with an emphasis on fibre networks, makes this ambitious target feasible.

·         In coming years Sweden will consolidate its position as one of Sweden is one of the world’s leading countries for fibre deployment. By 2011 fibre should account for about a third of all broadband subscriptions.

Data in this report is the latest available at the time of preparation and may not be for the current year.