New regulation enabling Sweden’s digital agenda

1. New regulation enabling Sweden’s digital agenda Brussels, Robert Liljeström April, 2014

2. Agenda Sweden – Our situation and digital agenda New regulation – EOI, only a first step EOI – What does it mean in practice? Implementation – Key success factors and risk TeliaSonera Business Development

3. Vi Swedish Digital Agenda: Best in the world in using the opportunities from the digitalization TeliaSonera Business Development

4. Challenging broadband target for a large country with small population 40% of households to have 100Mbit/s by 2015 90% of households to have 100Mbit/s by 2020  Source: CIA world fact book; Wikipedia; visitsweden.se; travel-to-germany.net TeliaSonera Business Development

5. Fiber drivinggrowthof 100Mbps+ access % ofpopulation TeliaSonera Business Development

6. Agenda Sweden – Our situation and digital agenda New regulation – EOI, only a first step EOI – What does it mean in practice? Implementation – Key success factors and risk TeliaSonera Business Development

7. Necessary to create a regulatory situation that enables deployment of fiber in increasingly expensive areas Increasingly expensive areas to deploy Broadband target:From 53% today to 90% 2020 Cost to deploy FTTH /SDU Less expensive if optimal deployment applied Single dwelling units in Sweden TeliaSonera Business Development

8. The regulatory challenge – From 1 access network (copper) to 200 local city networks (fiber) A new regulation needed to secure access to relevant bottlenecks TeliaSonera Business Development

9. A new regulation is necessary to enable investments and secure freedom of choice • Regulation enabling • Investment in new infrastructure • Freedom of choice for all consumers EOI is only a first step TeliaSonera Business Development

10. Agenda Sweden – Our situation and digital agenda New regulation – EOI, only a first step EOI – What does it mean in practice? Implementation – Key success factors and risk TeliaSonera Business Development

11. What will be different with EOI? = Not implemented today Same KPI´s that are measured in the same systems guarantee that EOI is working TeliaSonera Business Development

12. Significant need for IT and process changes, in particular for Telia SP Current situation Wanted Position - EOI TS-TelSims TeliaSonera Business Development

13. Agenda Sweden – Our situation and digital agenda New regulation – EOI, only a first step EOI – What does it mean in practice? Implementation – Key success factors and risk TeliaSonera Business Development

14. Clear scope of implementation of EOI is crucial – Risk of regulatory uncertainty during several years Clear scope of requirements to fulfill the coming 3 years (Not only EOI directive) Definition of limitations of scope. What is outside the scope for the coming 3 years? Clear rules regarding when and how price regulation will be lifted An economic replicable test that fulfills its purpose (not a new LRIC-model) TeliaSonera Business Development

15. Wrap-up A new regulation is necessary to achieve digital agenda targets Assuming PTS decision 2014 EOI finalized within 3 years Clear scope of implementation of EOI is crucial – Risk of regulatory uncertainty during several years EOI is only the first step. Long-term view and goal not defined – e.g. symmetric regulation TeliaSonera Business Development

16. Thank you!