SOCIO-ECONOMIC RETURN OF

20 YEAR FIBRE INVESTMENT IN

STOCKHOLMMarco Forzati

Broadband and

Society

FIBRE COST-BENEFIT CALCULATION

Revenue from Internet service

Revenue from telephony service

Revenue from TV service

Ro

ll-o

ut

co

st

Telc

ore

turn

Un

-ca

ptu

red

valu

es

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Open networks

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Open networks

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

Example: Price in most Swedish fibrenetworks amongst lowest in the world

Savings in Stockholm for telecom and IT (€10m per year)City of Stockholm: 30% Stockholm region: 50%

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Open networks

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

+ tax revenue- public spending

RoWrevenues

Example: Stokab has accumulated over €100m in profit

Increasedmarket value

Example: Stockholms housing companies increased rent by almost €10m annually and real-estate value €200m

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

Direct economic activity

Supplier industry

economic activity in supplier industry (acc.)

Stokab

revenue

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

Direct economic activityDirect economic activity

Ease to dobusiness

Very high access speed

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence Distance

working

higheremployment

Virtual labourmobility

entrepreneurship

New ICT and traditionalcompanies

E-health

E-government

Networkgaming

0

2000

4000

6000

8000

10000

12000

14000

16000

95%-confidence intervall

best estimate

Stockholm

10% more fibre0.1% higher employment

ACCUMULATED INVESTMENT AND

SOCIOECONOMIC RETURN

www.acreo.se

ACCUMULATED

INVESTMENT AND RETURNS

www.acreo.se

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

www.acreo.se

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

www.acreo.se

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure Direct economic activity

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

Example:Yearly savings in the delivery of home care: • up to €6,000m for whole of Sweden• up to €150m-200m in Stockholm

www.acreo.se

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

Direct economic activityDirect economic activity

Ease to dobusiness

Very high access speed

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence Distance

working

higheremployment

Virtual labourmobility

entrepreneurship

New ICT and traditionalcompanies

E-health

E-government

Networkgaming

www.acreo.se

new business

models

possible

New & better

services

increased use of ICT services

Competitionbetween SPs

reduced forcedmigration

ICT competenceHR pool

Ease to dobusiness

FTTH deployment

Very high access speed New infrastructure

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence

E-health

E-government

Logistics, prod,management

Sensornetworks

Democracyenhanced

transparency in PA

efficiencyin PA

Distance working

reduced traffic congestion

Networkgaming

Dev. of newtechnologies

Customers for new services

+ tax revenue- public spending

productivity

learningcurves

lower pricesfor services

lower entry

barrierslow upfront investment

for NP and SP

Functionalseparation

higheremployment

Virtual labourmobility

entrepreneurship

e-learning

Profitabilityof NP and SP

ProfitabilityOf PIP

RoWrevenues

reducedenvironment

impact

GDP

reduced bureaucracy

Perceivedqualityof life

Video surveillance

Power grid efficiency

New ICT and traditionalcompanies

Educationquality and cost

ICT Maturity:digital natives

Increasedmarket value

Direct economic activity

reduced forcedmigration

Ease to dobusiness

Very high access speed

True cloudcomputing

HD and 3D TVVoD

Videoconf.Tele-presence Distance

working

higheremployment

Virtual labourmobility

entrepreneurship

New ICT and traditionalcompanies

E-health

E-government

Networkgaming Perceived

qualityof life

Direct economic activity

10% more fibre0.25% pop increase