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Tele2
8 May 2014, Telecruise
Michaela AngoniusGroup Head of Regulatory Affairs
1
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Market presence and offered
servicesSweden
Full product suite
Norway
Full product suite
Germany
Mobile, Fixed broad-
band & telephony
Croatia
Mobile
Estonia
Mobile, Fixed
telephony
Latvia
Mobile
Lithuania
Mobile
Netherlands
Full product suite
Austria
Fixed broadband,
Fixed telephony
2
Kazakhstan
Mobile
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EU legislation –
promoting or demoting investment?
When the European Commission adopted the Connected Continent proposal
11 September 2013, the following was stated:
“The legislation proposed today is great news for the future of mobile and internet in Europe. The
European Commission says no to roaming premiums, yes to net neutrality, yes to investment, yes to
new jobs.”
Stated by Vice President Neelie Kroes, 11 September 2013
“Further substantial progress towards a European single market for telecoms is essential for Europe’s
strategic interests and economic progress. For the telecoms sector itself and for citizens who are
frustrated that they do not have full and fair access to internet and mobile services.”
Stated by European Commission President Jose Manuel Barroso, 11 September 2013.
The Connected Continent regulation is meant to increase GDP in EU by 1% every year if delivered.
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EU lagging behind – European Operators are not performing as well rest of
the world
Findings by the European Commission regarding the characteristics of
mobile wireless markets - U.S. vs. EU/EEA• Less product differentiation and consumer choice
• Slower pace of innovation
• Lower quality
• Lower intensity of use
• Sufficient rates of capital investments
• Lower revenues
Why did EC adopt the Connected
Continent Regulation?
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Sweden
99% population coverage
Lower Quality?
The Netherlands
4G network being
rolled out
The Baltics
4G network being
rolled out
Sweden
90%Geographical coverage
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Source: Open Signal – The State of LTE - 2014
Tele2 Sweden – One of best 4G networks in the world.
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Lower intensity of use?
Source: (right hand graph) Cisco VNI Mobile, 2014(Left hand graph) Tefficient Public industry analysis #15 December 2013
2011-32
2011-52
2012-20
2012-40
2013-8 2013-28
2013-48
2G 3G 4G
Data growth Tele2 Sweden Global Mobile Data Traffic
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Sufficient rates of capital investments
4G – 99% population coverage 4G roll-out initiated
Building a cutting edge 4G network Swap and 4G roll-out
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Scale and efficiency by network
sharing
9
SwedenBest practice in network JV structure leading to
significant CAPEX and OPEX savings
NetherlandsSite sharing with T-Mobile
JV's CAPEX
& OPEX
Tele2 share
of JV's CAPEX
& OPEX
Tele2 saving
If Tele2 would
build own
network
CAPEX &
OPEX
100%
40%
50%
90%
RRH*
Antenna
T-
Mobile
base
station
Tele2
base
station
Backhaul Tele2
core
network
T-Mobile
core
network
2G
3G
4G
4G
X
X
X
*RRH = Remote Radio Head
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Wrong diagnosis but right medicine?
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Investing in telecommunication requires regulatory stability and future proof regulation
Forecasted Actual
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Improved cost-efficiency by allowing for in- market consolidation
Population: 1.3 million
Nr. of operators: 3
Inhabitants per operator: 0.4 million
Population: 82.0 million
Nr. of operators: 4
Inhabitants per operator: 20.5 million
Population: 9,5 million
Nr. of operators: 4
Inhabitants per operator: 2.4 million
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What would make EU regulation promote investment?
Summary
Regulatory stability
Same rules for equivalent services
Need for competition but also need for in-
market consolidation