Sweden is an amazing country, with a strong mobile growth at around 10% including handset sales and an underlying growth of mid single digit. In a mature market.
Solid development of net sales in the quarter, mostly driven by smartphone sales and data services
Smartphone users have approx. 60% higher ASPU than feature phone users.
Customers who have switched from feature to smartphone show good uplift, indicating that they already were high ASPU customers. Future potential in uplift when the rest of the feature phone stock migrate to smartphones, mostly driven by higher fixed fees for data packages.
TODAY 5 % Low end (ZTE Blade and Huwei) 700 - 950 SEK 30 % Mid range (Sony Ericsson, HTC Wildfire) 1500 – 2500 SEK 65 % High End (Iphone and Galaxy S) 5500 – 6000 SEK Lineup: ZTE Blade, Huawei, SE Xperia mini, HTC Wildfire, Galaxy S2, iPhone 4 (i stigande prisordning)
Shift in th market where we see a decrease in the growth of 3G modems
MBB Privat: 46 000 kunder (3 Mkr/mån) på MBB Small – 11 000 utan trafik (700 tkr/mån). MIK: Ca 90 MKr/år recurring revenue – enligt P1 är denna stabil framöver. Low data package penetration with smartphones due to classification of ”smartphone” Better performance with a modem (dongel?)
Handset data drives profitability on mobile data: Only replaces sporadic mobile broadband use. Has an attractive relationship between usage and pricing.
Strong handset data potential. Today 65% of the postpaid customer stock does not have a data package or data included in price plan. 80% of the prepaid customer base uses less than 1 Mb data per month.
4G Mobile Broadband is a substitute to xDSL. 4G router to be launched in Q3/Q4.
1. Tele2 Sweden continued the roll-out of the combined 2G and 4G network in the joint venture Net4Mobility.
2. During Q2, six major cities were added to the list of what will become the network with the best coverage in Sweden. We have now covered 40% of the population.
3. (Furthermore, through Net4Mobility, Tele2 acquired a licence in the 800 MHz frequency allowing the company to build a 2G/4G network throughout Sweden in a cost efficient way. )
4. Tele2 is today offering 4G mobile broadband with speed up to 80 Mbit/s - unlimited surf at at 399 SEK/month. We are seeing 4G handsets and tablets arriving during 2H 2011.
Continued roll-out of fiber to households in Sweden.
Attractive service portfolio and Triple-play offerings.
Existing traditional cable-tv-business is leveraged to support fiber roll-out.
Around 1,5 billion SEK in Capex over the coming years
Positive for cash flow Looks negative for EBITDA %-margin
We will breake the trend and recover EBITDA EBITDA 2011 full year AC+F2: 2893 MSEK
As you saw a couple of days ago we have control over 99% of the shares on Network Norway which makes us able to continue with the integration in full speed. We see that we can have a rationalisation of the market, a market repair
One Call 44% of revenue. postpay consumer mobile brand with 5% market share i consumer mobile. LEBARA 30% of revenue, prepay consumer mobile brand targeting immigrants NwN Business 23% of revenue, postpay business mobile brand NwN Wholesale 3% of revenue
Important to remember short term we are still MVNO We will be the nr 3 player in the market with a current market share of around 15%. Long term the goal is offcourse to deliver on Tele2s overall targets on EBITDA and other KPIs. Hence we want to grow even further in Norway.
Capital Markets Day 2011
Market Area Nordic
Sep 20112 Capital Markets Day 2011
Market Area Overview
Strong cash flow generation in Q2 2011:
- EBITDA SEK 916 million
- CAPEX SEK 123 million
Represents 38% of total net sales Q2
Sweden: 35% Norway: 3%
Sweden: Building on mobile growth
and 4G roll-out coupled with
Norway: Integrate Network Norway
Sep 20115 Capital Markets Day 2011
Potential Uplift in Smartphone
1103 1104 1105 1106 1107
Smartphone Feature phone Smartphone Feature phone
Smartphone Install Base (Postpaid)
Sep 20116 Capital Markets Day 2011
Smartphone Price Range
Last year Today
Low End Smartphones Entering the Market
Sep 20117 Capital Markets Day 2011
Shift in Mobile Broadband Market
Handset Tablets Modem Router Fiber
Sep 20118 Capital Markets Day 2011
Handset Data Drives Profitability
Handset data drives profitability on mobile data
Strong handset data potential
4G Mobile Broadband is a substitute to xDSL
H1 2010 vs H1 2009 H2 2010 vs H2 2009 H1 2011 vs H1 2010
Mobile Data Revenue Increase
Handset data Mobile broadband data (3G)
Sep 20119 Capital Markets Day 2011
The 4G Roll-Out Continues
*Percentage of the population
In Q2 2011, 4G roll-out was
completed in 14 cities
4G mobile broadband is already
4G handsets and home router
coming late 2011
Sep 201110 Capital Markets Day 2011
Increased Fiber Focus
Tele2 Sweden core
Sep 201111 Capital Markets Day 2011
Cost Benefits of Mobile Networks in
of JV's Capex
If Tele2 would
Capex & Opex
2012 2013 2014
Mobile EBIT Saving
Mobile EBITDA (Sweden)
JV CAPEX & OPEX Saving
Sep 201112 Capital Markets Day 2011
Even more cost-efficient operations break the trend
2006 2007 2008 2009 2010 2011-1H
EBITDA% (left) EBITDA (right)
SEK MillionTele2 Mobile EBITDA
Sep 201115 Capital Markets Day 2011
Norwegian Market Consolidation
Aggressive price competition over the last couple of years pressuring revenue growth and
Fragmented market with two dominant operators
Declining MTR revenues
Increasing focus on scale, service offering and customer satisfaction
Realize synergy and scale possibilities
Create a clear #3 mobile operator in Norway
Consolidation resulting in market-repair / rationalisation
Sep 201116 Capital Markets Day 2011
Mobile Market Shares Based on
NetCom (Telia Sonera)
Chess (Telia Sonera)
Network Norway (with
OneCall and Lebara)
Det norske markedet for elektroniske
Post- og teletilsynet, 20 May 2011.
Nationwide coverage by 1H 2013
Long term market share of 25%
Long term alignment with Tele2
Sep 201117 Capital Markets Day 2011
• Smartphones are driving revenues and margin
• Increased fiber focus
• Shift in %-EBITDA trend
• Norwegian market consolidation