1. BROADBAND DEVELOPMENT IN THE EU
SOCIO-ECONOMIC EFFECTS OF
FIBRE-BASED BROADBAND
EXAMPLES & CALCULATIONS FOR SWEDEN AND DENMARK
Marco Forzati
Acreo Swedish ICT, Stockholm

2. FTTH COSTS AND BENEFIT CALCULATION
Profit from
Un-captured
copper
values
Roll-out cost
Internet service revenue
Telco return
Telephony service revenue
TV service revenue

3. increased use
FTTH deployment
of ICT services
Very high access speed Direct economic
activity
New & better
services
True cloud
Distance Virtual labour
computing
working mobility
HD
videoconf
Telepresence Higher
Logistics, prod, employment
management Ease to
do
business
New ICT and
ICT traditional
competence companies
HR pool
ICT Maturity:
digital Customers for entrepreneurship
natives new services

4. FTTH deployment
Our question:
• What actually happened after fibre was deployed?
The tool:
Higher
employment
• Multivariable regression analysis of all of Sweden’s
290 municipalities
The data:
• Fibre penetration in 2007
• Employment, tax rate, etc. 2007-2010

5. FTTH deployment
120 M€/year
0.1%
Change in employmnent 2007-2010
Higher
(adjusted)
employment
600 M€
FTTH/FTTx penetration in 2007 10%

6. increased use
FTTH deployment
of ICT services
Very high access speed
New & better
services
Distance
True cloud working
computing
HD
videoconf Ease to
Telepresence do
business
Logistics, prod,
management reduced forced
e-learning
migration
E-health Perceived
quality
E-government of life
New ICT and
ICT traditional
competence companies
HR pool
ICT Maturity:
digital Customers for entrepreneurship
natives new services

7. FTTH deployment
? €/year
0.25%
Change in population 2007-2010
(adjusted)
reduced forced
migration
600 M€
FTTH/FTTx penetration in 2007 10%

8. FTTH deployment
Lowest price
New infrastructure
350
Example:
agreement tenant ass’n and
300 new business
housing companies model
250 possible
• €5/month/apartment Increased
market value Functionally
200
separated
price
150 open access (price)
Lineær
Examples:
Saving in data and telecom for:
100
• City of Stockholm: 30%
50
• Jönköping municipality: 15% Competition
between SPs
• Stockholm region: 50%
0
0 2 4 6 8 10 12
• Region Norrbotten: 50%
lower
prices
for services
Example:
Price in most Swedish fibre networks:
• Symmetrical 10 Mb/s: €15-25/month
• Symmetrical 100 Mb/s: €20-35/month

9. QUANTIFYING THE VALUES

10. A STUDY FOR STOCKHOLM
16000
14000
12000
Investment [2012 MSEK]
10000
TOTAL RETURN [2012 MSEK]
8000
6000
4000
2000
0

11. EXTRAPOLATION TO DENMARK
Dansk Energis studie, baserad på
Acreos modell:
“Investeringer i fiberbredbånd vil give
samfundsøkonomiske gevinster for over
16 mia. kr. i form af bl.a. arbejdspladser
og øget konkurrenceevne, viser
beregninger”
Børsen, 22 jan 2013

12. MARCO FORZATI
MARCO.FORZATI@ACREO.SE