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1 Sweden’s largest coverage
1Sweden’s largest coverage
1
3
The Swedish market
Net 1 focus area
Network
2
4 Products
5 Consumer Segment
2
6 Business Segment
Contents
The Swedish market
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4
Population 9.3 million inhabitants in Sweden
4.5 million broadband subscriptions on 30 June 2010
1.5 million mobile broadband subscriptions
End of June 2010, 45 % of broadband subscriptions had a transmission capacity of 10 Mbit per
second or more downstream.
Total telecom market hardly showing growth.
Industry revenue stable at around 50bn SEK since 2002, with fixed telephony as a bigloser
Mobile Data, excluding SMS/MMS, currently account for ~5% of industry revenue and shows
significant growth, albeit from a small base.
The Swedish market
5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1 000
2 000
3 000
4 000
5 000
2005 2006 2007 2008 2009 1H 2010
Swedish broadband
Fixed Broadband Mobile Broadband
BB penetration on HH (%) MBB penetration on HH (%)
Fixed broadband growth losing pace – the
negative trend for fixed broadband is
expected to continue.
Mobile broadband household penetration
expected to surpass fixed penetration 2013
The Swedish market
Coverage
Net 1 Telia/Tele2 3 Telenor
Net 1 Focus Area
7
Rural Countryside City Sweden Penetra
tion 2
012
Mark
et 201
2
Targ
et MS
Custom
ers 2
012
1 Forest counties inland 99 201 82 535 159 501 341 237 15% 27 260 40% 10 904
2 Forest counties mid/east 31 295 406 702 977 577 1 415 574 20% 87 599 30% 26 280
3 Cities / Urban 27 040 338 917 3 316 160 3 682 117 30% 109 787 3% 2 964
4 South 17 059 1 144 819 2 655 541 3 817 419 25% 290 470 20% 58 094
Total 174 595 1 972 973 7 108 779 9 256 347 26% 555 268 18% 98 242
Addressable market
rural and countryside population in the following areas
Addressable market is 2,15 million individuals living in approx.
900K households.
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Defining Net 1s segmentation base for consumer
Net 1 Focus Area
0
20
40
60
80
100
120
140
160
180
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
Market share and pop density
Market share
Pop / sq km
ATL strategy, Fall 2011
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Net1 only focus on areas with pop density less than 20 pop/sq km and current market share above 2%*
Total target population ATL (Above the line marketing) is 2,4 million pops, or equivalent to 1 million
households – in line with high level segmentation on rural and country side market.
* Market share based on
a market of individuals
with access to MBB.
Network
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Historic Network
Frequency and capacity
450 MHz operation
4,5 MHz bandwidth
Infrastructure
360 BTS in Sweden
2 Core site
1 1x and 2 EV-DO carrier
Features
Mobile Broadband, Mobile Telephony,
PTT (Trustar, GoTa), SMS, MMS,
LBS (A-GPS, gpsOne), SIM/RUIM,
Roaming Extended range
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Network Data
Frequency and capacity
450 MHz operation
5 MHz bandwidth
Infrastructure
420 BTS in Sweden
2 Core site
4 EV-DO carrier
Features
Mobile Broadband
Extended range
QoS
Products
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Network
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Communication Device/Modem
OSSCRM/Billing/WEBDevice Monitoring
Network
Operations
Customer
Operations
End user device
End user Back
end system
End user
Operations
Product space overview
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Product model
Hardware and Usage
Device type
Usage of Mb or Gb per month
Quality and Priority
QoS
Priority level
Access level
Security
VPN
Fixed IP
L2TP
Consumer – Products
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D35 (Axestel)
Rev A, Router 3,1/Mb, WiFi
4xRJ45 Ethernet, 1xUSB
D40 (Cmotech)
Rev A, Router 3,1/Mb, WiFi
1xRJ45 Ethernet, 1xRJ11 analog phone,
1xUSB
D50 (Cmotech)
Rev A, Dial up 3,1Mb
1xUSB
D51 (Cmotech)
Rev B, Dial up 9,3Mb
1xUSB
D60 (Cmotech)
Rev A, Dial up 3,1Mb, GPS
1xUSB
Broadband router
with WiFi
Broadband router
with WiFi and analog VoIP
Broadband USB dongles
Nexpring, Fältcom, Digi, Anyway, Mobicom
Rev A, Router 3,1Mb, WiFi, battery
Ethernet, RS232/422/485, analog/digital I/O,
switching relays, CAN-bus, GPS
Rev A, Dial up USB
Business – Products
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Rugged Devices with
and/or keep a live
function
Narrowband and AMR Tritech, Xemex, TransData
Rev A/B, Router/AMR, 869MHz 25k Mesh radio,
M-bus, RS232, Relay controls
Consumer segments
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Rural population
A significant amount of our population live in rural
areas were decent Internet services are limited
compared to other areas. People living in rural
areas shows the most mature online shopping
behavior among Swede's.
2 150 000 inhabitants are living in rural areas.
Large geographical spread concentrated to the
inland of northern Sweden.
Solutions: Mobile broadband, fixed wireless
telephony
Source: Statistics Sweden, the Swedish National Rural
Development Agency, The Swedish Post and Telecom
Agency
Consumer
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Boat owner segment
Boat life is one of Sweden’s largest movements with one
third of the adult population travel at least once per year on a
leisure boat. Net1 have superior coverage along the coasts
and in our archipelagos.
718 000 registered leisure boats
147 908 registered leisure boats with overnight
possibilities.
1 000 boat associations with a total of
250 000 members.
2 million adults travel on leisure boats every season.
Boat life is increasing and is expected to increase in the
future
Source: SweBoat 2008
Interest groups
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Vacation houses
There are a large number of vacation houses in
Sweden. Spending holidays in a vacation house is very
common for Swedish families, main seasons are
summer and winter.
680 000 registered vacation houses. An important
part of the target group are also those who have
access or rent vacation houses (not included
above)
Work updates, weather information, convenience
matters
Solutions: Mobile broadband - Work updates, weather
information, convenience matters
Source: Statistics Sweden
Interest groups
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Caravans & motor homes
Caravans and motor homes has a strong
traditional position among Swede’s and is a very
popular way of spending family vacations.
265 000 caravans in use every year.
43 000 motor homes in use every year.
Active campers are concentrated to areas outside
Sweden´s three conurbations.
Campers mainly travel in Sweden. Some travel to
other Nordic countries.
Average usage: 24 days on the road, 16 nights at
camping sites distributed at 5 different sites.
Source: Husvagnsbranschens Riksförbund
(the Swedish Caravan Association)
Interest groups
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Business segments
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Source: Statistics Sweden
The need for high data speed across the country is
increasing to be able to communicate in real time.
Offering Internet services to travelers is becoming
more common among travel operators.
23 809 companies
102 421 potential users
Solutions: Telematrics, mobile Hot-Spot solutions, access
to business critical applications
Typical customers: Road carriers, railway companies,
busses, delivery firms, etc.
Customers: Flygbussarna, Veolia transport, Strömma
buss
Transport on land
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Source: Statistics Sweden
The sea transport and shipping companies
need costal coverage with an increasing
demand for high data speed. Real time
communication in a robust network is key,
since it simplifies their daily operation.
1 122 companies
12 291 potential users
Solutions: Access to mission critical applications,
Mobile Hot Spot solutions, telematics, telephony.
Typical customers: Passenger traffic, freight
traffic
Transport at sea
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Source: Statistics Sweden
Communication in remote places is a critical need,
both from a personal safety and productivity aspect.
106 665 companies (approx. 80% 1 man co’s)
119 821 potential users*
Solutions: Telematics, access to business critical
applications, telephony, PTT, positioning. Special coverage
for enterprise telephony solutions
Customers: Svea Skog, SCA, Stora Enso
Forestry
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Robust solutions providing high data speeds
with nationwide coverage can be used for
different applications in surveillance.
1 034 companies
14 652 potential users
Solutions: Video surveillanc, transmission, access to
mission critical applications, telephony, PTT,
positioning etc.
Source: Statistics Sweden
Security & Surveillance
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Source: Statistics Sweden
The power companies are active in remote
areas with the need for data speeds as well
as security and safety solutions.
1 426 companies
26 319 potential users
Solutions: Telematics, access to business critical
applications, video surveillance, telephony, PTT
and positioning
Customers: Vattenfall, SkellefteKraft, Göteborgs
energi, Jämtkraft, Mitt Sverige Vatten AB
Power & distribution
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* Includes both self employed businesses and employees.Source: Statistics Sweden
The need to set up communications fast at
construction sites is crucial. Mobile
solutions with high data speeds and great
coverage is important.
60 000 companies
450 000 potential users*
Solutions: Access to business critical
applications, telephony, PTT, positioning
Construction
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Sweden have 16 mines with mainly lower
world breaking with 6 owner groups (LKAB,
Boliden, Minmet, Lovisagruvan, Svartliden
Guld and Lundingruppen.
Total production value: 19 billion
Approximately 5 100 employees in mining and
smelting plants.
Source: Government offices of Sweden - Ministry of Enterprise, Energy and Communications
Mining Industry
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Fishing have always been an important
resource for human beings. Today, there
are over 2,000 professional fishermen in
Sweden, who´s catch each year reaches a
market value of around one billion kronor.
1 479 licensed fishing vessels
1 807 licensed fishermen
The total number employed in this sector is larger
since employees working at fishing vessels
doesn´t always hold a licensed.
Source: The Swedish Board of Fisheries
Fishing Industry
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For the business community in Sweden’s
rural and sparsely populated areas,
communication infrastructure is a critical
aspect in developing competitive
businesses and keeping up with the
metropolitan areas.
85 000 companies
38 000 companies – Net 1 only option for
Mobile Broadband access
Large geographical spread
Source: Statistics Sweden, the Swedish National Rural
Development Agency, The Swedish Post and Telecom
Agency
Rural business
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Source: Statistics Sweden
Robust solutions providing high data
speeds with nationwide coverage is a key
criteria within different areas in this sector.
1 500 000 potential users
Blue- and yellow lights
Healthcare
Municipalities
Solutions: MBB, VPN access, telephony, PTT
and positioning, video surveillance, video
conferencing
Customers: The Swedish Police, Swedish Coast
Guard, Regional Council, Ambulance Services
Public sector
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