The Swedish Telecommunications Market first half-year 2012

Transcription

1 Report number PTS-ER-2012:24 Date 7 November 2012 The Swedish Telecommunications Market first half-year 2012

2 The Swedish Telecommunications Market first half-year 2012 Report number PTS-ER-2012:24 File reference ISSN Authors Pamela Davidsson, Bianca Kojo Gustafsson, Karin Fransén The Swedish Post and Telecom Authority Box Stockholm +46 (0) The Swedish Post and Telecom Authority 2

3 Foreword The market data that the Swedish Post and Telecom Authority (PTS) compiles for the Swedish Telecommunications Market comprises one of our tools for monitoring the rapid developments occurring within electronic communications. The number of broadband subscriptions via fibre is now approaching one million, at the same time as we have achieved more than two million new mobile broadband subscriptions as a consequence of the explosive development of smartphones, which confirms the two overarching characterising developments within the market for electronic communications in recent years. This means that there is a growing need for increasingly fast broadband speeds and that we wish to be able to use Internet services via mobile units wherever and whenever we want to. An Internet-linked telephone also paves the way for another development that is slowly but surely establishing itself, namely that increasing numbers of services are being supplied through the Internet language IP (Internet Protocol). This means that a broadband connection to the Internet will emerge as the bearer of all services in the future, including voice services. Within fixed telephony we can see, for instance, that IP-based telephony is growing and now represents one-third of all fixed telephone subscriptions. Developments have not been so extensive within the area of television, though IPTV is growing year on year. We can see in the half-year statistics for 2012 for the first time that a traditional telecom service in the mobile network, namely SMS (text messaging), is reducing. This is due, among other things, to consumers finding alternative means to communicate with each other via services on the Internet. In this way they can circumvent the telecom operators own small message services. We have not yet seen the same clear trend as regards voice services in mobile networks, but previous surveys have shown that mobile users are willing to test and use the Internet-based alternatives to traditional calls. This presents a challenge to the operators traditional business models, which are to a large extent based on minute charges in the networks. Besides our work with ensuring that the market gains access to necessary radio spectrum so that the mobile networks can be developed and also our work to promote effective competition, we must work closely with the consumer. One important measure is to ensure that consumers have freedom of choice when they buy subscriptions, that they can buy what they require and that they get what they expect and pay for. Our ongoing work to enhance transparency within operator contracts is consequently very important. The Swedish Post and Telecom Authority 3

4 If our work is to be successful and oriented towards the right problems, it is absolutely critical to have a good picture of market developments, among other ways through this report The Swedish Post and Telecom Authority 4

5 Contents Foreword 3 Abstract 8 Sammanfattning 9 1 Aim and method 12 2 Market development - Subscriptions Fixed call services Mobile call services and mobile data Number portability Internet services Television services Bundled subscriptions 35 3 Use Traffic Call traffic Messaging services Mobile data traffic Traffic with international roaming 42 4 Market development Revenues Mobile call services and mobile data 44 5 Market shares Fixed call services Mobile call and data services Broadband subscriptions Television services 52 Appendix 1 List of participants 56 Appendix 2 Service providers in mobile networks, June Appendix 3 Report tables 58 Appendix 4 Quality Declaration 59 The Swedish Post and Telecom Authority 5

6 Diagrams Figur 1 Number of subscriptions for fixed telephony Figur 2 Number of subscriptions for mobile services and mobile data Figur 3 Number of subscriptions for telematics Figur 4 Portings of numbers for fixed and mobile telephony Figur 5 Number of subscriptions for Internet services Figur 6 Development of number of subscriptions for fixed broadband Figur 7 Annual growth in broadband subscriptions Figur 8 Development of transmission speed for subscriptions of fixed broadband (downstream) Figur 9 Development of transmission speed for subscriptions of mobile broadband (downstream) Figur 10 Distribution of transmission speed for subscriptions on fixed broadband (upstream) Figur 11 Development of subscriptions for television services Figur 12 Number of subscriptions for television via broadband Figur 13 Television subscriptions distributed by kind of housing Figur 14 Number of bundled subscriptions Figur 15 Number of outgoing traffic minutes Figur 16 Development of number of SMS sent and number of SMS per subscription and month Figur 17 Development of number of MMS sent and number of MMS per subscription and month Figur 18 Development of mobile data traffic Figur 19 Traffic and SMS sent with international roaming Figur 20 Revenues from end users for mobile call and data services Figur 21 Revenues from swedish subscribers abroad Figur 22 Development of revenues from international roaming within EU countries Figur 23 Market shares- subscriptions for fixed call services Figur 24 Market shares- Subscriptions for mobile call and data services The Swedish Post and Telecom Authority 6

7 Figur 25 Market shares- subscriptions for all broadband Figur 26 Market shares- subscriptions for fixed broadband Figur 27 Market shares- subscriptions for mobile broadband Figur 28 market shares- subscriptions for television services Figur 29 Market shares- subscriptions for digital television services The Swedish Post and Telecom Authority 7

8 Abstract Both subscriptions for and the use of fixed call services continued to reduce during the first half-year of At the end of June, there were 4.3 million subscriptions for fixed telephony. Of these, 3.2 million were private, which means that 72 per cent of all households had a fixed telephone subscription. One-third of all subscriptions for fixed telephony were IP-based at the end of June Call traffic from the fixed networks reduced during the first half-year of 2012 compared with the same period a year ago, while the traffic from the mobile networks continued to increase Viewed overall, fewer calls and fewer minutes were made from fixed and mobile networks during the first half-year of 2012 compared with the first half-year of There were in total 8.1 billion SMS messages sent from mobile telephones during the first half-year of 2012, which means that this is the first time that we observed a decline in the total number of SMS messages sent. There were 114 million MMS messages sent during the half-year of 2012, which is more than during any previous half year. The volume of mobile data sent in the networks increased by 73 per cent during the first half-year of 2012 compared with the first half-year of 2011, which represents a lower rate of increase than in previous periods. When Swedish subscribers were abroad they made and received calls to the same extent as before, but they send more SMS messages and sent more data than in previous years. Subscriptions for mobile data and call services continued to increase, and there were 13.7 million such subscriptions at the end of June Mobile broadband represented a large proportion of this increase. There were 6.2 million mobile broadband subscriptions at the end of June This is more than twice as many as subscriptions for fixed broadband, which at the same point in time amounted to 3.1 million. Of the fixed broadband subscriptions, fibre and fibre LAN have continued to increase and had risen to at the end of June Of the fixed broadband, just over one-fifth ( ) had a subscription with a speed for downloading data of at least 100 Mbps, while only three per cent (just over ) had an upload speed of at least 100 Mbps. IPTV via fibre is the means of distribution that continued to represent the largest proportion of the increase of subscriptions in the Swedish television market. The number of subscriptions for IPTV via fibre was at the end of June 2012, corresponding to an increase of 47 per cent in one year. The Swedish Post and Telecom Authority 8

9 Sammanfattning Abonnemang och användning av fasta samtalstjänster fortsatte att minska under första halvåret I slutet av juni fanns det 4,3 miljoner abonnemang på fast telefoni. Av dessa var 3,2 miljoner privata vilket innebär att 72 procent av hushållen hade ett fast telefonabonnemang i slutet av juni En tredjedel av alla abonnemang på fast telefoni var ip-baserade i slutet av juni Samtalstrafiken från de fasta näten minskade under första halvåret 2012 jämfört med samma period ett år tidigare medan trafiken från mobilnäten fortsatte att öka. Det innebar att 59 procent av all samtalstrafik kom från mobila nät medan 41 procent ringdes från fasta nät. Totalt sett ringdes färre samtal och färre minuter från fasta och mobila nät under första halvåret 2012 jämfört med första halvåret Det totala antalet sms som skickades från mobiltelefoner var 8,1 miljarder under första halvåret 2012 vilket innebär att det är första gången vi noterar en nedgång i totalt antal skickade sms. Det skickades 114 miljoner mms under första halvåret 2012 vilket är fler än under något tidigare halvår. Mängden mobil data som skickades i näten ökade med 73 procent under första halvåret 2012 jämfört första halvåret 2011, vilket är en lägre ökningstakt än tidigare perioder. När svenska abonnenter befinner sig utomlands ringde de och tog emot samtal i lika stor utsträckning som tidigare, men de sänder fler sms och skickade mer data än tidigare år. Abonnemangen på mobila data och samtalstjänster fortsatte att öka och var 13,7 miljoner i slutet av juni Mobilt bredband stod för en stor del av ökningen. De mobila bredbanden var 6,2 miljoner i slutet av juni 2012 vilket är mer än dubbelt så många som abonnemangen på fast bredband som vid samma tidpunkt var 3,1 miljoner. Av de fasta bredbanden har fiber och fiber_lan fortsatt att öka till i slutet av juni Av de fasta bredbanden var det drygt en femtedel, , som hade ett abonnemang med en hastighet för nedladdning av data på minst 100 Mbit/s medan endast tre procent (drygt ) hade en uppladdningshastighet om minst 100 Mbit/s. Ip-tv via fiber är det distributionssätt som fortsatt står för den största delen av ökningen av abonnemang på den svenska tv-marknaden. Antalet abonnemang på ip-tv via fiber var i slutet av juni 2012, vilket motsvarar en ökning på 47 procent på ett år The Swedish Post and Telecom Authority 9

10 Half-year 2012: Table 1 Key data - the market for electronic communications Fixed call services First half year 2012 First half year 2011 Change Subscriptions for fixed telephony (thousands) % of which via IP-telephony (thousands) % Outgoing traffic minutes (millions) % Private % Business % Mobile call services and mobile data Mobile subscriptions (thousands) % Private % Business % of which active UMTS/CDMA 2000 subscriptions % of which active 4G (LTE ) subscriptions % of which mobile broadband as a stand-alone service % of which mobile broadband as an add-on service % Outgoing traffic minutes (millions) % Number of SMS sent (millions) % Number of MMS sent (millions) % Traffic for mobile data services (Tbyte) % Revenues from mobile subscriptions, SMS, MMS and mobile data traffic (SEKm) Private Business Subscriptions for telematics services % The Swedish Post and Telecom Authority 10

11 Half-year 2012: Table 1 Key data - the market for electronic communications Internet services Internet subscriptions (thousands) % Dial-up subscriptions % Broadband subscriptions % via cable television % via fiber and fiber-lan % via xdsl % Of wich broadband subscriptions 100 Mbps and over % Mobile broadband subscriptions % of which mobile broadband as a stand-alone service % of which mobile broadband as an add-on service % Television services Number of television subscriptions (thousands) % of which analogue television % of which digital television % of which IPTV % Bundled services Number of bundled subscriptions (thousands) % The Swedish Post and Telecom Authority 11

12 The Swedish Telecommunications Market first half-year Aim and method The purpose of the report The Swedish Telecommunications Market first half-year 2012 is to survey the development of a substantial part of the Swedish market for electronic communications. The Swedish Post and Telecom Authority (PTS) has the assignment of both monitoring the development of the market for electronic communications and also promoting competition within the said market. As a part of this assignment, PTS works with the compilation of market data and with market analyses. In addition to PTS s internal need of market data, it is also important that the public, operators and other undertakings and organisations gain access to statistics, a factor which provides a further incentive for PTS to publish market statistics. This report, The Swedish Telecommunications Market, should primarily be viewed as PTS s report on statistics in the market for electronic communications, and there is consequently a focus on reporting statistics that describe the market. The report The Swedish Telecommunications Market is also available as a full-year version, which is more comprehensive. The statistics for the first half-year 2012 have been compiled using a webbased questionnaire Structure and implementation The compilation of data forming the basis of the Swedish Telecommunications Market is subject to a duty to reply and has been so since The compilation material for the first half-year of 2012 was distributed at the end of June 2012 to in aggregate 57 stakeholders in the form of a web-based questionnaire. These stakeholders comprise together, in terms of numbers of subscription, between 96 and 100 per cent of the market. The compilation of data was conducted during the period July to September 2012, and the initial mailing was followed up with two reminders via and one via post. Some undertakings that did not respond were reminded via telephone. In early October, responses had been received from all stakeholders. However, the compilation and adjustment of operator data will continue even after publication of the report The Swedish Telecommunications Market, which means that PTS s database 1 for operator statistics is being continuously updated. 1 PTS s database is available on the PTS statistics portal, statistik.pts.se The Swedish Post and Telecom Authority 12

13 The Swedish Telecommunications Market first half-year 2012 Information about the number of subscriptions and traffic for those to whom inquiries have not been made for the half-year survey have been estimated on the basis of their information contained in The Swedish Telecommunications Market The stakeholders participating state in the questionnaire the areas in which they have conducted operations during the first half-year of The number of stakeholders that that have conducted operations within the various areas and also the total market share for the participating stakeholders are shown in the summary below. Note that an operator may have operations within a number of areas. Active stakeholders within each area together with market shares for the participating stakeholders Areas First halfyear 2012 Share Fixed call services 36 98,3 Mobile call and data services and mobile broadband 2 99,9 Internet subscriptions 40 97,2 Television services 20 96,5 Bundled subscriptions 16 99,7 Total number asked See the attached List of participants, Appendix 1, for a complete list of which operators have responded within which areas Deviations and updates of data Measurement error occurs during the compilation process, which is due to a number of sources of error such as: Those asked have not answered all of the questions in the questionnaire All operators in the market have not responded to the questionnaire The responses were misleading owing to it not being possible for any exact value to be established from the business s accounts, instructions 2 PTS-ER 2012:17 The Swedish Post and Telecom Authority 13

14 The Swedish Telecommunications Market first half-year 2012 having been misunderstood, been inadequate or incorrect details having been provided The measurement error is not considered to be large and can often be compensated through proceeding on the basis of data from precious compilations or by making estimates based on related questions in the questionnaire. As the information that is reported expressed as per cent is rounded, the total of the parts is not always 100 per cent. Historical statistics are revised in pace with PTS receiving corrections and further information. For this reason statistics for one and the same year may differ in various annual editions of the report. The most recently updated database is available on the PTS web-based statistics portal (statistik.pts.se). See the attached Quality Declaration, Appendix 4, for a more detailed description of measurement error and attrition Historical information and market shares Market development is reported by statistics, which in some cases stretch back to As of and including 2006, PTS also publishes market shares for the variables at retail level for each period that information was compiled. Market shares for a number of different variables are contained in this report, but considerably more details are published on the web-based statistics portal. Those variables which are considered to be inadequate or misleading in some other way are not published on the statistics portal Definitions The definitions used in the questionnaire form the basis of the reports, and these definitions are revised continuously so that they are in phase with developments in the market. The segmentation of the individual sub-markets may also change from year to year. Since 2003, regard is also taken to PTS s need of information for conducting market analyses and making decisions concerning whether any operator has significant market power. The information can to a large extent still be compared with previous reports despite these changes. Types of Internet connections As regards the sub-market Internet services, it is common to confuse expressions such as fixed connection, broadband connection, wireless connection, mobile connection, broadband and others since there is no The Swedish Post and Telecom Authority 14

15 The Swedish Telecommunications Market first half-year 2012 common definition. In the Swedish Telecommunications Market the terms are defined according to the following list: Dial-up connection Fixed connection Mobile connection Wireless connection Wired connection Broadband connection Mobile broadband Mobile broadband as a stand-alone service Mobile broadband as an add-on service PSTN, ISDN PSTN, ISDN, fixed radio, satellite, xdsl, cable television, fibre, fibre LAN LTE, HSPA, CDMA 2000, UMTS, EDGE fixed radio, satellite, LTE, HSPA, CDMA 2000, UMTS, EDGE PSTN, ISDN, xdsl, cable television, fibre, fibre LAN fixed radio, satellite, xdsl, cable television, fibre, fibre LAN, LTE, HSPA, CDMA 2000 In this report, mobile broadband refers to subscriptions for mobile packet data when it is purchased both as a stand-alone service and an add-on service. A subscription which is basically used for mobile packet data and where the data access is used at least once during the last quarter of the period or where a subscription charge has been paid during the last quarter of the period. The subscription should not have generated any voice traffic minutes during the last quarter of the period. Refers to bundling products where the subscriber purchases at least 1 GByte of data traffic per month, either via an add-on service or included in the subscription. In practice, this means smartphones used for both calls and mobile broadband. The terms private customer and business customer In numerous cases statistics are reported broken down into private customers and business customers respectively. The definitions of private and business customer respectively are based on who pays for the service, not who the user is. The criterion for the paying party to be designated as a business customer (including those organisations that are not businesses) is that it has a company/organisation identity (ID) number. The others are designated as private customers. However, this approach means that businesses and organisations registered with personal identity (ID) numbers are included in the category private customers. The Swedish Post and Telecom Authority 15

16 Thousands The Swedish Telecommunications Market first half-year Market development - Subscriptions 2.1 Fixed call services On 30 June 2012 there were 4.3 million fixed telephone subscriptions in Sweden, which can be compared to 4.6 million subscriptions one year previously. This corresponds to a reduction of 6 per cent in one year. Figur 1 Number of subscriptions for fixed telephony june 2005 june 2006 june 2007 june 2008 june 2009 june 2010 june 2011 june 2012 PSTN WLR ISDN IP telephony Of these fixed subscriptions, just more than 3.2 million were private which, if related to the nearly 4.5 million 3 households in Sweden, means that 72 per cent of households had a fixed telephony subscription at the end of June The number subscriptions for fixed telephony via PSTN and ISDN continued to reduce, while the number of subscriptions for IP-based telephony continued to increase; they comprised almost one-third of all subscriptions for fixed telephony on 30 June SCB: Population 30 June 2012: ; with 2.1 persons per household, that equals households. The Swedish Post and Telecom Authority 16

17 The Swedish Telecommunications Market first half-year Reduction in subscriptions for telephony via PSTN There were subscriptions for fixed telephony via PSTN on 30 June Of these, were via a stakeholder other than TeliaSonera via Wholesale Line Rental (WLR). 4 The possibility of choosing an operator other than TeliaSonera for debiting of telephone calls, referred to as pre-selection, was introduced in 1999 and was at its greatest in 2003 when there were over 2 million subscriptions for preselection. The number has reduced since then, and at the end of June 2012 the number was This is a reduction of 15 per cent compared with one year before Reduction also in subscriptions for ISDN At the end of June 2012, there were subscriptions for ISDN. This is a reduction of 7 per cent since the same time one year before. With just over subscribers, TeliaSonera has over half of all ISDN subscriptions Subscriptions for IP-based telephony continue to increase There were subscriptions for IP-based telephony on 30 June 2012, which represents an increase of 11 per cent since the corresponding date in 2011, when there were This means that one-third of all subscriptions for fixed telephony are now IP-based. The number of subscriptions for IP-based telephony via xdsl amounted to at the end of June 2012, which represents an increase of 17 per cent, or , since the same date a year previously. The number of subscriptions for IP-based telephony via cable television reduced during 2012 and was on 30 June The number of subscriptions for IP-based telephony via fibre or fibre LAN was at the end of June 2012, which represents an increase of 20 per cent compared with the same date one year before. Those stakeholders that cannot specify which technology is used for subscriptions for IP-based telephony report their subscriptions as other IP-based access. These also increased in number and amounted to at the end of June WLR is the abbreviation for Wholesale Line Rental for telephony subscriptions. WLR means that the subscriber can pay both subscription and call charges to an operator other than Telia. Before WLR was introduced in 2004 many subscribers paid a subscription charge to Telia and a traffic bill to another stakeholder ( pre-selection telephony ). The Swedish Post and Telecom Authority 17

18 The Swedish Telecommunications Market first half-year 2012 Com Hem, TeliaSonera and Telenor (through the subsidiaries Bredbandsbolaget and Glocalnet) are the largest stakeholders in IP-based telephony, and they have together over 1 million subscribers A transfer to SIP telephony in progress Operators offer, besides traditional fixed switched telephony, VoIP (Voice over IP, also known as broadband telephony) as a service. This is effected by a connection to the IP network over which the operator itself has control, in contrast to what we know as the Internet. Such IP telephony has services and quality that correspond to the traditional circuit-switched technology. SIP (Session Initiation Protocol) 5 is used to establish, modify and terminate IP telephony calls. It is common for businesses and public authorities, making use of IP telephony in their internal network, to connect their local IP-based subscriber switchboard to the traditional circuit-switched telephone network (Public Switched Telephone Network PSTN) via a local gateway, which is located at the customer. To do this, it is necessary to have two different connections; besides the ordinary IP-based external connection to the Internet, it is also necessary to have a separate external connection based on ISDN. Increasing numbers of service providers today offer a modern alternative to this, where one and the same external IP-based connection is used for both data and for voice via what is known as an SIP trunk and where PSTN is reached via a central operator-located gateway. For the business, this means that they no longer need to have local PSTN gateway or ISDN connections. It is considered that this is highly likely to represent a major breakthrough for IP telephony in the form of increased functionality and the creation of new services. At the end of June 2012 there were subscriptions for SIP trunks, which represents an increase of just more than 60 per cent since the same date a year ago when there were At the end of June 2012 there were SIP addresses, that is to say active user accounts that were used for telephony. The largest stakeholder, in terms of number of SIP addresses, is Telavox, which has just over subscriptions for active addresses. 5 SIP is a peer-to-peer (point to point) protocol developed by the Internet Engineering Task Force (IETF) (RFC 3261) for multimedia and IP telephony. This procedure is initiated through calls to what is known as an SIP server. The Swedish Post and Telecom Authority 18

19 Thousands The Swedish Telecommunications Market first half-year Mobile call services and mobile data The market for mobile call and data services has continued to grow. On 30 June 2012 there were 13.7 million mobile subscriptions in Sweden, which can be compared with 13.0 million the year before. This entails an annual growth of 5 per cent. In addition, there are 3.4 million subscriptions for telematic services that are not included in the above figure. Telematic subscriptions are reported in section Subscriptions for telematics below. Figur 2 Number of subscriptions for mobile services and mobile data june 2008 june 2009 june 2010 june 2011 june 2012 Mobile calls only Mobile call and data services (excluding add-on) Mobile broadband, add-on service Mobile broadband, stand-alone service Of all mobile subscriptions at the end of June 2012, of these were pre-paid cards and were contract subscriptions. This means that prepaid cards constituted one-third of all subscriptions. In comparison it may be mentioned that ten years ago over half of all subscriptions were pre-paid cards. In June 2012 there were 2.7 million of TeliaSonera, Tre and Telenor pre-paid cards which were anonymous, which means that these subscribers were unknown and had not registered themselves. This corresponds to The Swedish Post and Telecom Authority 19

20 The Swedish Telecommunications Market first half-year 2012 approximately more than one half of the operators total number of pre-paid cards Reduction in subscriptions without mobile broadband The number of mobile subscriptions that were used solely for call services was on 30 June This represents a reduction of since the same point in time a year ago, which corresponds to an annual reduction of 8 per cent. TeliaSonera and Tele2 have together 3.2 million subscriptions for call services alone, which corresponds to 80 per cent of all subscriptions. The number of mobile subscriptions that were used for both calls and data, but which did not include add-on subscriptions for mobile broadband was on 30 June This is just more than one million less than it was at the same point in time one year before. There were private subscriptions for mobile call and data services that had a geographical number linked to them on 30 June This is a telephone number that is traditionally regarded as being linked with fixed telephony but can also go to mobile telephones Increase in subscriptions for mobile broadband The number of subscriptions for mobile broadband has doubled in one year and amounted to just more than 6.2 million at the end of June The number of subscriptions for mobile broadband as a stand-alone service 6 was on 30 June These have increased from June 2011 until June 2012 by , which corresponds to an annual growth of 12 per cent. The number of subscriptions for mobile broadband as an add-on service 7 has continued to increase during the first half-year of On 30 June 2012 they amounted to , which is an increase of since the same point in time a year ago and corresponds to an annual increase of 82 per cent. Of these, were added during the last six months, that is to say since the turn of the year. 6 Subscriptions which have been used for mobile packet data only, and have not generated any call traffic during the last quarter of the period. This is usually a dongle, a plug-in card or the like. 7 Subscriptions where at least 1 Gbyte of data per month was included or bought as an add-on service. The Swedish Post and Telecom Authority 20

21 The Swedish Telecommunications Market first half-year Few subscriptions have used 4G (LTE) during the spring of 2012 The world s first 4G network was introduced in Stockholm at the end of In PTS s Broadband Survey 8 it is shown that in October 2011 almost half of the population of Sweden lived in a place that had coverage by one of the 4G networks. Almost subscriptions have used services in LTE during the first quarter of There is no access to sector statistics regarding how many terminals there were in Sweden during the first half-year of 2012 that had the capacity to process 4G/LTE. In October 2012 there were mobile telephones that had support for LTE on the Swedish market from at least four manufacturers, according to information from Mobiltelebranschen. 9 At the end of June 2012 there were at least routers on the Swedish market that had support for LTE, according to information from the supplier Dovado Increase in subscriptions for Telematic services Subscriptions for telematic services, referred to as machine-to-machine subscriptions intended for communication between machines, are not included in the subscription figures reported above in this section. 8 PTS-ER-2012:11 PTS s Broadband Survey Mail, 14 October, from MTB (Mobiltelebranschen, a sector organisation for suppliers, wholesalers and distributers within the mobile telephony sector). The telephones were: Sony Mobile Xperia V, Nokia Lumia 920, Nokia Lumia 820, Samsung Galaxy SII LTE, Samsung Galaxy SIII LTE, Samsung Galaxy Note, LG Optimus True HD LTE. 10 Mail, 17 October, from Dovado. In addition to Dovado there are products from, among others, D-link and Huawei on the Swedish market. The Swedish Post and Telecom Authority 21

22 Thousands The Swedish Telecommunications Market first half-year 2012 Figur 3 Number of subscriptions for telematics jun 2009 jun 2010 jun 2011 jun 2012 Telematics The number of subscriptions for telematics services amounted to on 30 June 2012, representing an increase of 27 per cent from the same period the preceding year, when these amounted to Telenor Connection had almost half of all subscriptions in the Swedish market in mid Other major stakeholders, in terms of number of subscriptions, are Telenor Sverige, TeliaSonera and Wireless Maingate. 2.3 Number portability SNPAC 11 compiles and publishes statistics on the number of portings in Sweden. The following section is based on data from SNPAC. 11 Swedish Number Portability Administrative Center: The Swedish Post and Telecom Authority 22

23 Thousands The Swedish Telecommunications Market first half-year 2012 Figur 4 Portings of numbers for fixed and mobile telephony H H H H H H H H H H H 2012 Mobile Fixed During the first half-year of 2012 a total of telephone numbers, of which were fixed and were mobile, were ported in Sweden. Compared with the first half-year of 2011, there is consequently an increase in the number of ported telephone numbers of 23 per cent, or numbers. This is, viewed overall, the highest number of telephone numbers that have been ported in Sweden during a half year. The number of ported fixed telephone numbers increased by 21 per cent, and the ported mobile telephone numbers increased by 23 per cent. The ported fixed numbers constituted 3.1 per cent of the total number of subscriptions for fixed telephony during the first half-year of The ported mobile numbers constituted during the same period 2.5 per cent of the total number of mobile subscriptions (excluding mobile broadband as a stand-alone service and telematics) Twice as many mobile as fixed numbers ported annually The proportion of fixed ported numbers in relation to the total number of ported numbers has in 10 years, since 2002, increased from 3 to 31 per cent. The proportion of mobile ported numbers has during the same period The Swedish Post and Telecom Authority 23

24 Thousands The Swedish Telecommunications Market first half-year 2012 decreased from 97 per cent to 69 per cent. This breakdown has remained rather stable over the last three years. 2.4 Internet services On 30 June 2012 the total number of subscriptions for Internet services was almost 9.5 million. This is an increase of 2.1 million since the first half-year of 2011, when they were just more than 7.3 million. Figur 5 Number of subscriptions for Internet services june 2005 june 2006 june 2007 june 2008 june 2009 june 2010 june 2011 june 2012 xdsl Cable TV Mobile broadband, add-on service Fibre Lan Mobile broadband, stand alone service Dial-up internet The number of subscriptions for dial-up Internet reduced and amounted to on 30 June The subscriptions for dial-up Internet comprise 2.5 per cent of the total number of subscriptions for Internet services. TeliaSonera and Tele2 have together 96 per cent of all subscriptions for dial-up Internet. Of the 9.5 million subscriptions for Internet services, 9.3 million constituted subscriptions for broadband Fixed Internet connections The number of subscriptions for fixed broadband was 3.1 million on 30 June 2012, and there were more subscriptions than at the same time one year ago. 12 See section for the definition of broadband'. The Swedish Post and Telecom Authority 24

25 Thousands The Swedish Telecommunications Market first half-year 2012 Figur 6 Development of number of subscriptions for fixed broadband june 2005 june 2006 june 2007 june 2008 june 2009 june 2010 june 2011 june 2012 Cable TV xdsl Fibre Lan Dial-up internet Other The number of subscriptions for broadband via fibre and fibre LAN was at the end of June 2012, and they represent the entire increase in subscriptions within fixed broadband. This involves an increase of subscriptions from the same period of the year before. TeliaSonera and Telenor are the largest stakeholders, in terms of number of subscriptions; they have about subscribers each. Bahnhof Unipessoal, Bredband2 and Tele2 have about subscribers each and thereby are the next largest in the market. The other just over 30 stakeholders have together the remaining almost subscriptions. Since the peak in 2008, the number of subscriptions for xdsl has reduced and was on 30 June This is a reduction by subscriptions since June 2012, which corresponds to an annual reduction of 5 per cent. The number of subscriptions for broadband via cable television was on 30 June 2012, which is an equal number as the same time one year before, but less than at the turn of the year. The Swedish Post and Telecom Authority 25

26 Thousands The Swedish Telecommunications Market first half-year 2012 The number of subscriptions for other fixed broadband connection 13 was at the end of June 2012, which is unchanged compared with previous periods. Figur 7 Annual growth in broadband subscriptions june 2006 june 2007 june 2008 june 2009 june 2010 june 2011 june 2012 xdsl Cable TV Fibre Lan Other Up to 2008, xdsl subscriptions represented a large proportion of the growth of fixed broadband in the Swedish market. But since the first half-year of 2008 it is instead fibre and fibre LAN that have represented the ongoing growth of subscriptions for fixed broadband, which is clearly shown by the figure above Increase in subscriptions for mobile broadband The number of subscriptions for mobile broadband amounted to 6.2 million during the first half-year of 2012, which is an increase of 51 per cent, or 2.1 million subscriptions, since the first half-year of Of the mobile broadband, 33 per cent were subscriptions for mobile broadband as a standalone service and 67 per cent were subscriptions for mobile broadband as an add-on service. During the first half-year of 2011, those which were standalone services comprised 55 per cent of all mobile broadband, and those that were add-on services comprised 45 per cent. 13 Other broadband connection includes, among others, Telia ProLane, etc. The Swedish Post and Telecom Authority 26

27 Thousands The Swedish Telecommunications Market first half-year Transmission capacity for subscriptions for broadband Internet and broadband services are often what is known as asymmetrical, that is to say, they do not have the same transmission speed for downloaded data (received data) as for uploaded data (sent data). The operators in the market most often offer a higher speed for downloaded data than for uploaded data. Broadband via fibre and upgraded cable television networks to Docsis 3.0 have the technical capacity to manage transmission capacity downstream of at least 100 Mbps. There is, however, a difference in the speed that a technology can manage and the speed that a consumer subscribes for with their broadband provider. The Swedish Telecommunications Market has for a number of years monitored the development of transmission rates for downloaded data for the subscriptions provided for broadband connection in the Swedish retail market. Figur 8 Development of transmission speed for subscriptions of fixed broadband (downstream) june 2007 june 2008 june 2009 june 2010 june 2011 june 2012 >= 100 Mbps Mbps Mbps 2-10 Mbps 144 Kbps-< 2 Mbps The number of subscriptions for fixed broadband with a higher transmission capacity continues to increase, and during the first half-year of 2012 there were 1.9 million subscriptions with a speed of 10 Mbps or more. This involves an increase from the first half-year of 2011 of 20 per cent, or subscriptions. The number of subscriptions with a speed of 10 Mbps or more was 62 per cent of all subscriptions for fixed broadband. The Swedish Post and Telecom Authority 27

28 Thousands The Swedish Telecommunications Market first half-year 2012 The number of subscriptions with a speed of 100 Mbps or more was at the end of June This represents an annual increase of 28 per cent, or subscriptions, since the corresponding point in time the year before. The number has increased by since 31 December Of the total of subscriptions for fixed broadband via fibre, there were with a speed of 100 Mbps or more at the end of the first half-year of Given the total number of subscriptions, this means that more than half of the fibre subscriptions have a download speed of 100 Mbps or more. Figur 9 Development of transmission speed for subscriptions of mobile broadband (downstream) june 2007 june 2008 june 2009 june 2010 june 2011 june 2012 >=30 Mbps Mbps 2-10 Mbps 144 Kbps- < 2 Mbps There were 1.9 million subscriptions for mobile broadband at the end of the first half-year of 2012 that had a download speed of 10 Mbps or more. This is an increase of 1.2 million compared with the same period a year before. The proportion of subscriptions with a speed of 10 Mbps or more was 31 per cent of all mobile broadband during the first half-year of The corresponding proportion during the first half-year of 2011 was 18 per cent. The Swedish Post and Telecom Authority 28

29 The Swedish Telecommunications Market first half-year 2012 Figur 10 Distribution of transmission speed for subscriptions on fixed broadband (upstream) 3% 4% 26% 8% 59% 144 Kbps-< 2 Mbps 2-10 Mbps Mbps Mbps >= 100 Mbps The number of subscriptions for fixed broadband that has an upload speed of 10 Mbps or more was during the first half-year of This corresponds to one third of all subscriptions for fixed broadband. The proportion of subscriptions for fixed broadband with an upload speed of 30 Mbps or more is approximately 7 per cent of the total number of subscriptions for fixed broadband. The same speed interval (30 Mbps or more) for downloading data comprises 44 per cent of the total number of subscriptions for fixed broadband. The greatest difference in the proportion of subscriptions with high transmission speeds may be assumed to depend upon the operators business models, which offer different prices for different speeds for both downloading and uploading data. 2.5 Television services Various television channels (for instance SVT1, TV3 and Eurosport) are packaged to be offered to end users in the form of different subscriptions. In order for the content in the channels to reach the end user it is necessary to have a programme broadcasting service (television service) which is supplied by a network operator. Television broadcasts can be both analogue and digital. The Swedish Post and Telecom Authority 29

30 Subscriptions (Thousands) The Swedish Telecommunications Market first half-year 2012 There are currently in Sweden the following main means of distribution for broadcasting of the traditional television service: terrestrial network; cable television network; satellite and IPTV via broadband (over fibre, fibre LAN or xdsl). This section describes the development of the number of subscriptions for various distribution platforms that are used to supply television services. On 30 June 2012 the total number of subscriptions for television services (including SMATV 14 ) amounted to 5.3 million, which is an increase of subscriptions compared with the same point in time the preceding year. At the end of June 2012 there were 2.9 million subscriptions for digital television services, which is an increase of subscriptions since June Figur 11 Development of subscriptions for television services Analouge cable Digital cable DTT DTH IPTV - via LAN IPTV - via xdsl june 2008 june 2009 june 2010 june 2011 june Development of number of subscriptions via the cable television networks The number of subscriptions for digital cable television services amounted to almost 1.1 million on 30 June 2012, which is an increase of SMATV is the abbreviation of Satellite Master Antenna Television. An SMATV network refers to a small cable television network that is fed television channels via satellite. The Swedish Post and Telecom Authority 30

31 The Swedish Telecommunications Market first half-year 2012 subscriptions compared with the same point in time one year before. However, during the last half year, that is to say from 31 December 2011 to 30 June 2012, the number of subscriptions has reduced by , which is the first time this has occurred. It is primarily Com Hem, but also Tele2, that has reported a reduced number of digital cable television subscriptions for 30 June 2012 compared with 31 December The greatest increase in digital cable television subscriptions during the period 30 June 2009 to 30 June 2010 resulted primarily from the reporting being changed to also include digital subscriptions within cable television networks where the operator has a direct contract (that is to say a direct invoicing relationship) with the household, which in its turn also has a contract for a basic subscription, usually analogue, via the property owner. This increase also resulted from previously reported subscription figures being revised. Of the digital cable television subscriptions in June 2012, 30 per cent were indirect via a contract with a property owner, while the remaining 70 per cent were via contracts direct with the end users, which is an unchanged split since the measuring was introduced in The number of subscriptions for analogue cable television services including SMATV 15 was almost 2.4 million at the end of June This is a reduction of compared with the same point in time the preceding year. However, during the last half year, that is to say from 31 December 2011 to 30 June 2012, there has been an increase of subscriptions. Of the analogue cable television subscriptions, 99 per cent were indirect via a contract with a property owner, and the other were direct through contracts with the end users, a split which has also been unchanged since the measuring was introduced in Of the analogue cable television subscriptions, 2.1 million were subscriptions reported from the major television operators. 16 The remaining subscriptions comprise an estimate based on the number of households that receive analogue cable television via SMATV networks. SMATV operators buy subscriptions and television channels from programming agencies 17 and sell these on to end users. The number of households that receive television via SMATV operators reduced by compared with the same period in SMATV here refers to SMATV within an agency operation and to the extent they also are found within operators own operations. 16 Major operators here refers to Com Hem, Telenor, Sappa, TeliaSonera and Tele2. 17 Programming agencies are Sappa and Canal Digital Sverige AB. The Swedish Post and Telecom Authority 31

32 Subscriptions (thousands) The Swedish Telecommunications Market first half-year 2012 A household that has a cable television connection often has an analogue basic subscription via its property owner and in that case has also taken out an individual digital subscription. In order to estimate the number of households that use cable television, the number of analogue and digital cable television subscriptions should consequently not be added. PTS estimates that the number of households that have one or more subscriptions for cable television services is about 2.6 million, which is been rather unchanged since Television via broadband, IPTV, increasing most of all forms of distribution The number of subscriptions for television via broadband, known as IPTV, continued to increase during the first half-year of 2012 and will soon be as many as those via satellite and terrestrial networks, respectively. Figur 12 Number of subscriptions for television via broadband june 2008 june 2009 june 2010 june 2011 june 2012 IPTV - via xdsl IPTV - via LAN The number of subscriptions for IPTV amounted to on 30 June 2012, which is an increase of subscriptions from one year before. The 18 Most operators have two different subscriptions, one for analogue and one for digital cable television reception. But there is also another business model where one subscription includes reception of both analogue and digital channels, for instance Tele2 and a few other operators. These are often reported only under digital subscriptions to avoid counting the same subscriptions twice. The number of households that receive cable television is estimated by totalling the number of cable television subscriptions added to those subscriptions that can receive both analogue and digital but that are only reported under digital subscriptions. The Swedish Post and Telecom Authority 32