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Anders Broberg - Stokab Stockholm

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Anders Broberg - Stokab Stockholm

  1. 1. Stockholm IT-infrastructure Stokab 2015
  2. 2. • Only PIP (physical, infrastructure provider – right of way, duct and fibre) • The purpose is to provide an open ICT- infrastructure in order to secure a free and fair competition regarding services • Thereby also contribute to growth, jobs and a sustainable development • Owned by the City of Stockholm • Initial cost £ 3 775 What is Stokab
  3. 3. • The public sector is responsible for infrastructures including IT- infrastructure • Infrastructure must be open to all players on equal terms in order to create competition at the service level • The infrastructure must be provided by a neutral player • Non-discriminatory and transparent pricing policies required Stockholm´s principle approach
  4. 4. Stokab facts • Owned by the City of Stockholm • Founded in 1994 • Turnover £ 54 million (2014) • Investment £ 7 million (2014) • 100 employees • Over 800 customers • Over 100 Operators and SPs
  5. 5. Situation in Stockholm 2015 • 100 % broadband coverage - wired and mobile • Four 4G (LTE) networks (100 % coverage) No 1 in the world – Stockholm 2009 • Buildings with 400 000 households have fibre-optic by FTTH, which means speeds up to 1 Gbps  About 90 percent households  Nearly 100 percent companies Price for households 1 Gbps (down and up) 200-250 SEK/month (£ 15-20)
  6. 6. Business model • Lease of fibre optic connections (dark fibre) • Network open to all players on equal terms • For the customer requirements (point to point, ring structure, star structure - unlimited capacity - and Service Level Agreements) 640 fibres
  7. 7. Stokab - Opening the value system STOKAB Wireline Broadband Operator Mobile Broadband Operator Real Estate Communications Operator Internet Service Provider Residential Customer BusinessesPublic Institutions
  8. 8. Economic Model • Non-recurrent fee + distance • Fixed price defined areas • In other areas of way according to each case • Discount: volume + contractual period • Financing: earnings and loans
  9. 9. Investment 1994-2014 250 51 134 140 214 180 253 420 550 237 69 101 142 169 390 329 361 501 332 172 91 0 100 200 300 400 500 600 Total investment 1994-2014, 5 086 million SEK Total investment £ 384 million
  10. 10. Income/profit after financial items 0 -119 0 -12 7 27 52 60 42 -32 3 25 45 94 143 149 168 171 174 175 188 -150 -100 -50 0 50 100 150 200 250 199419951996199719981999200020012002200320042005200620072008200920102011201220132014 Cumulative profit 1 335 million SEK (£ 101 million) Profit on average = 64 million SEK per year (£ 4,8 million)
  11. 11. • Acreo Swedish ICT • Lower price for broadband • Higher competition • Precondition for the rollout 4G/LTE • More jobs • Increased property values • Cost savings for the public sector • More attractive city – Stockholm vs Copenhagen 16 billion SEK in socio-economic return
  12. 12. PwC - Cities of opportunity Internet access in schools (best) Broadband quality (second best – Seoul) Digital economy (best)
  13. 13. Stockholm’s top ranking is thanks to its well-developed ICT infrastructure, with a high penetration of smartphones and high-speed connections such as fiber-optic broadband and 4G/LTE. The world's most connected city
  14. 14. • A political consensus at municipal level that ensured a long-term view at the project’s inception and continued support when things turned rough. • A public shareholder that views the network as a public infrastructure rather than just a dedicated resource for its own needs, which has allowed Stokab to develop without excessive political constraints. • A gradual deployment that focused first on revenue generating business needs to then finance residential roll out with the cash flow generated from the profitable and amortized business side. • A guarantee of neutrality and non-competition with customers (by offering only passive services), which has attracted private service providers and other entities like real estate owners and managers onto the network. • Non-discriminatory and transparent pricing as well as industry-grade processes. The key elements of Stokab’s success
  15. 15. Benefits of the “Stokab model” • One infrastructure for all – The city considers a fibre-network, as any other ground-based infrastructure, as a public utility • Reduce civil works • Lower threshold for new company entries • Lease dark fibre to a fair price (fixed price defined areas) • High security • Customers will not have high investment costs or costs for operations • Customers can focus on core business • Financing: earnings and loans
  16. 16. More about Stokab? Document: http://ssrn.com/abstract=2114138 Interview: http://video.stockholm.se/video/773 2962/study-on-stokab-benot-felten Seminar: http://streamio.com/api/v1/videos/5 121e37111581e3f980094b5/public_ show Socio-economic return Document: https://www.acreo.se/publications/s tokab-en-samhallsekonomisk- analys-sammanfattning Annual Report: http://www.stokab.se/In- english/Arsredovisning/ Stockholm´s telecom history: https://stokab.se/Documents/Nyheter%20bilagor/Stokab_eng.pdf

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