2012 Sweden - Telecoms, IP Networks, Digital Media and Forecasts

Broadband Strategy aiming for 90% access to 100Mb/s broadband by 2020.

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 one of Europe’s more vibrant and progressive countries. The report includes the regulator’s market data to the end of 2011, telcos’ financial and operating data to June 2012, and market developments to late 2012.

Telecom market overview

Sweden has fared better than most countries in weathering the region’s 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 4% in 2011 before falling to an estimated 0.8% in 2012 as the region’s economic difficulties weigh down on exports. Despite the economic climate, telecoms market revenue increased 3.8% in 2010 following a number of years during which growth was stagnant. Continued growth, albeit slow, is expected for 2012 and 2013. 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.

The broadband market benefits from extensive infrastructure-based competition. The dominant DSL platform has contracted in recent years as consumers have migrated to FttH networks. This trend will become more pronounced in coming years, compounded by greater adoption of mobile broadband offerings as LTE networks depending on fibre backhaul take shape into 2013. Lower revenue from fixed and mobile telephony has been partly offset by increases from the CATV sector.

Mobile market

Mobile networks also now carry more voice traffic than fixed networks – 55% of all traffic compared to 10% in 2001. Accounting for customer use of multiple SIM cards, mobile penetration in early 2012 was about 99%. Sweden has been at the forefront of LTE developments, having launched services in late 2009. The country was also among the first to provide 2.6GHz spectrum for LTE, and to allow refarming of 3G for 4G. As a result, the rate of LTE take-up in Sweden accelerated sharply in 2011 and 2012, assisted by greatly expanded coverage from all four MNOs and the wider availability of LTE-enabled tablets and devices.

Key telecom parameters – 2010; 2012

(Source: BuddeComm)

Market Highlights

• The number of quad play subscribers looks set to grow rapidly during the next few 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 most bundles.
• TeliaSonera’s ownership of dark fibre in the access network prompted the regulator to impose access obligations in the network infrastructure market.
• The first stage of auction for licences in the 1800MHz band in late 2011 aimed at realizing the government’s Broadband Strategy. Licences are valid from the beginning of 2013 to 2037.
• Mobile data use is set to grow more rapidly during the next few years as LTE and HSPA networks expand across the country. High growth in mobile data use has not been matched with revenue growth given existing market competition and regulatory measures on data tariffs.

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.