Transform Digital: Aberdeen 4th February 2015 Anders Broberg, Communications Director Stokab on how this world-leading project was developed and what it has achieved.

1. Stockholm
IT-infrastructure
Stokab 2015

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. • 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. 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. 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. 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. Stokab - Opening the value system
STOKAB
Wireline
Broadband
Operator
Mobile
Broadband
Operator Real
Estate
Communications
Operator
Internet Service
Provider
Residential Customer
BusinessesPublic
Institutions

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. 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. 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. • 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. PwC - Cities of opportunity
Internet access in schools (best)
Broadband quality
(second best – Seoul)
Digital economy (best)

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. • 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. 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. 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