1. BROADBAND DEVELOPMENT IN THE EUSOCIO-ECONOMIC EFFECTS OF FIBRE-BASED BROADBANDEXAMPLES & CALCULATIONS FOR SWEDEN AND DENMARK Marco ForzatiAcreo Swedish ICT, Stockholm

2. FTTH COSTS AND BENEFIT CALCULATIONProfit fromUn-captured coppervaluesRoll-out costInternet service revenueTelco returnTelephony service revenueTV service revenue 3. increased use FTTH deploymentof ICT servicesVery high access speedDirect economicactivity New & better servicesTrue cloudDistance Virtual labourcomputingworking mobilityHD videoconf Telepresence HigherLogistics, prod,employment management Ease todo businessNew ICT and ICTtraditionalcompetence companiesHR poolICT Maturity: digitalCustomers for entrepreneurshipnatives new services 4. FTTH deploymentOur question: What actually happened after fibre was deployed?The tool: Higher employment Multivariable regression analysis of all of Swedens290 municipalitiesThe data: Fibre penetration in 2007 Employment, tax rate, etc. 2007-2010 5. FTTH deployment 120 M/year0.1% Change in employmnent 2007-2010Higher(adjusted)employment 600 M FTTH/FTTx penetration in 2007 10% 6. increased useFTTH deploymentof ICT servicesVery high access speed New & better services DistanceTrue cloud workingcomputingHD videoconf Ease to TelepresencedobusinessLogistics, prod, management reduced forced e-learning migrationE-health Perceivedquality E-governmentof life New ICT andICTtraditional competence companies HR poolICT Maturity: digital Customers for entrepreneurshipnativesnew services 7. FTTH deployment ? /year0.25%Change in population 2007-2010(adjusted)reduced forced migration 600 M FTTH/FTTx penetration in 2007 10% 8. FTTH deploymentLowest price New infrastructure 350Example:agreement tenant assn and300new businesshousing companies model250possible 5/month/apartment Increasedmarket valueFunctionally 200 separated price 150open access (price) Liner Examples: Saving in data and telecom for:100 City of Stockholm: 30% 50 Jnkping municipality: 15% Competitionbetween SPs Stockholm region: 50%00 2 46 81012 Region Norrbotten: 50% lowerprices for services Example: Price in most Swedish fibre networks: Symmetrical 10 Mb/s: 15-25/month Symmetrical 100 Mb/s: 20-35/month 9. QUANTIFYING THE VALUES 10. A STUDY FOR STOCKHOLM160001400012000Investment [2012 MSEK]10000TOTAL RETURN [2012 MSEK] 8000 6000 4000 20000 11. EXTRAPOLATION TO DENMARK Dansk Energis studie, baserad p Acreos modell:Investeringer i fiberbredbnd vil givesamfundskonomiske gevinster for over16 mia. kr. i form af bl.a. arbejdspladserog get konkurrenceevne, viserberegninger Brsen, 22 jan 2013 12. MARCO FORZATIMARCO.FORZATI@ACREO.SE