The Swedish Telecommunications Market First Halfyear

Transcription

1 Report number PTS-ER-2015:28 Date The Swedish Telecommunications Market First Halfyear 2015

2 The Swedish Telecommunications Market First Half-year 2015 Report number PTS-ER-2015:28 Reference number ISSN Authors Karin Fransén and Andreas Wigren The Swedish Post and Telecom Authority Box Stockholm +46 (0) The Swedish Post and Telecom Authority 2

3 Contents Sammanfattning 5 Summary 9 1 Aim and method Structure and implementation Discrepancies and updates of data Historical information and market shares Definitions 17 2 Market development Subscriptions Mobile call and data services M2M services Number portings Internet services Fixed call services Television services Bundled services 39 3 Usage traffic Call traffic Messaging services Mobile data traffic 43 4 Revenues in the market Mobile call and data services M2M 47 5 Market shares Mobile call and data services Broadband Fixed call services Television services 53 APPENDICES List of participants Changes in the statistics Report tables Quality declaration 60 The Swedish Post and Telecom Authority 3

4 Diagrams Figure 1 Number of subscriptions for mobile voice and data services Figure 2 Number of subscriptions that used 4G (LTE) Figure 3 Number of subscriptions for M2M services Figure 4 Number of portings of fixed and mobile telephone numbers Figure 5 Number of internet subscriptions Figure 6 Development of broadband subscriptions Figure 7 Share of fixed-line broadband subscription per technology Figure 8 Breakdown of speeds for downloading of data fixed-line broadband Figure 9 Breakdown of speed for data upload fixed-line broadband Figure 10 Number of subscriptions for fixed-line telephony Figure 11 Number of television subscriptions per distribution platform Figure 12 Share of television subscriptions per distribution platform Figure 13 Number of bundled subscriptions Figure 14 Outgoing voice minutes from fixed-line and mobile subscriptions Figure 15 Development of the number of SMS sent in total and per subscription and month Figure 16 Volume of mobile data transmitted Figure 17 Revenue from mobile voice and data services Figure 18 Mobile revenue distributed between fixed and variable fees Figure 19 Market shares subscriptions for mobile voice and data services Figure 20 Market shares broadband subscriptions in total Figure 21 Market shares fixed-line broadband subscriptions Figure 22 Market shares mobile broadband subscriptions Figure 23 Market shares fixed-line voice service subscriptions Figure 24 Shares subscriptions for television services Figure 25 Shares subscriptions for digital television services The Swedish Post and Telecom Authority 4

5 Sammanfattning De marknadsdata som Post- och telestyrelsen samlar in från operatörer och andra aktörer visar en fortsatt snabb utveckling inom området elektronisk kommunikation. Alla jämförelser avser 30 juni 2015 jämfört med samma tidpunkt I figurer betyder 1H2015 det första halvåret Denna sammafattning är uppdaterad den 1 december Antal miljoner abonnemang i Sverige första halvåret 2015 (förändring jämfört med första halvåret 2014 inom parentes): Mobilt Bredband Fast telefoni Tv Mobila samtal och data (med data 1GB) 6,7 milj. (+13%) Mobila samtal (lite eller utan data) 5,5 milj. (-8%) Fast (fiber, kabel, xdsl) 3,3 milj. (+4%) Mobilt (dongel, router) 2,2 milj. (0%) 3,67 milj.(-5%) Varav iptelefoni 1,8 milj. (+8%) tv-tjänster 5,1 milj. (0%) Varav iptv 0,9 milj. (+24%) The Swedish Post and Telecom Authority 5

6 Mobila samtal med och utan data Antalet abonnemang på mobila samtal med och utan data ökade med 2 procent till 12,2 miljoner. Det är antalet abonnemang med över 1 Gbyte data, (mestadels smarta mobiler) som ökar med 13 procent medan abonnemang utan data och med lite data fortsätter att minska. Antalet sms från mobiltefoner ökar med 1 procent efter att ha minskat under flera år. Det är sms via företagsabonnemang som ökar. En trolig förklaring till ökningen är att allt fler abonnemang innehåller sms i det fasta priset. Mobila intäkter Intäkterna från mobila samtals- och datatjänster steg med 4 procent och uppgick till 15,1 miljarder kronor. Ökningen beror främst på växande intäkter från mobil datatrafik. En allt större andel av intäkterna, drygt 70 procent, kom från fasta avgifter. Detta beror på att allt fler abonnemang har ett fast pris där samtal, sms och en viss mängd data ingår. The Swedish Post and Telecom Authority 6

7 Mobil datamängd Det fanns 2,2 miljoner abonnemang på mobilt bredband som fristående tjänst (dongel eller router) vilket är på samma nivå som föregående år. Mängden överförd data i mobilnäten fortsatte att växa och uppgick till Tbyte. Det är en ökning med 37 procent, vilket är en större än föregående period. Här ingår mobildata från både mobila samtals- och datatjänster via smarta mobiler (tillägg) och via mobilt bredband via router eller dongel (fristående). En allt större andel av trafiken genererades av smarta mobiler, vilka stod för 41 procent av den mobila datatrafiken. Det totala antalet fasta bredbandsabonnemang via fiber, kabel-tv och xdsl ökade sammantaget med 4 procent till knappt 3,4 miljoner. Antalet bredbandsabonnemang via fiber fortsatte att öka (18 procent) och uppgick till 1,5 miljoner. Bredband Gruppanslutningar där internetabonnemang ingick uppskattas till knappt , vilket motsvarar 18 procent av totala antalet privata fasta bredbandsabonnemang. Med gruppanslutningar avses internetabonnemang som operatörer har tecknat med t.ex. hyresvärdar, bostadsrättsföreningar, samfälligheter eller byalag istället för direkt med slutkunderna. Ett syfte med gruppanslutningar är att erbjuda lägre priser till slutkunder, och i många fall kan priserna vid gruppanslutningar bli mindre än hälften av priset för samma tjänst genom ett enskilt avtal. Två nackdelar med gruppanslutningar är att många i gruppen måsta ansluta sig och att avtalen ofta har relativt långa bindningstider. The Swedish Post and Telecom Authority 7

8 Bredbandsabonnemang med höga hastigheter nedströms fortsatte att öka och uppgick till 1,38 miljoner för abonnemang med hastigheter på 100 Mbit/s eller mer vilket är en ökning med 29 procent. Även abonnemang med höga uppströmshastigheter fortsatte att öka och det fanns abonnemang med 100 Mbit/s eller mer uppströms. Fast telefoni Fast telefoni fortsätter att minska. Det fanns 3,7 miljoner samtals-abonnemang den sista juni 2015, en minskning med 5 procent. Av dessa var 1,8 miljoner ip-telefoni abonnemang, vilka ökade med 8 procent. Antalet abonnemang över traditionell telefoni (PSTN och ISDN) minskade med 14 procent, till 1,4 miljoner. Andelen abonnemang på ip-telefoni som var aktiva uppskattades till 74 procent. Andelen sampaketerade abonnemang där ip-telefoni ingår, motsvarade 83 procent av ip-telefoniabonnemangen. Av dessa uppskatas 69 procent vara aktiva. Av de inaktiva ip-telefoniabonemangen var så gott som alla sampaketerade. Traditionell tv Antalet ip-tv abonnemang via fiber ökade med 15 procent till och övriga tv-former minskar. Totala antalet tvabonnemang låg kvar på 5,2 miljoner. Vill Du veta mer? På PTS statistikportal ( kan du söka och sortera statistik på de olika områdena. Där finns även data för enskilda aktörer är tillgänglig. The Swedish Post and Telecom Authority 8

9 Summary Market data collected from operators and other actors by the Swedish Post and Telecom Authority shows a continued rapid development within the field of electronic communication. All comparisons refer to 30 June 2015 compared to the same juncture in Where present in figures, 1H2015 refers to the first half of This summary has been updated on December 1, Total number of subscriptions (in millions) in Sweden for the first half of 2015 (change compared with the first half of 2014 in brackets): Mobile Mobile voice and data services (with data 1 GB) 6.7 mil. (+13%) Mobile voice services (little or no data) 5.5 mil. (-8%) Broadband Fixed (fibre, cable, xdsl) 3.3 mil. (+4%) Mobile (dongle, router) 2.2 mil. (0%) Fixed-line telephony 3.67 million (- 5%) Of which VoIP account for 1.8 mil. (+8%) TV TV services 5.1 mil. (0%) Of which IPTV accounts for 0.9 mil. (+24%) The Swedish Post and Telecom Authority 9

10 Mobile voice services with and without data Number of subscriptions to mobile voice services with and without data increased by 2 % to 12.2 million. The number of subscriptions with over 1 Gigabyte of data (mostly smartphones) is increasing by 13 %, whereas subscriptions with little or no data continue to decrease. The number of text messages sent from mobile phones is increasing by 1 per cent after having declined over many years. Text messages sent through corporate subscriptions are those increasing in number. One probable explanation for the increase is that growing numbers of subscriptions include text messages in the fixed price. Mobile revenues The revenues from mobile voice and data services increased by 4 per cent and reached SEK 15.1 billion. The increase is primarily due to growing revenues from mobile data traffic. An increasing portion of revenue, around 73 per cent, comes from fixed charges. This is due to the fact that more subscriptions offer a fixed price which covers voice services, text messaging and a certain amount of data. The Swedish Post and Telecom Authority 10

11 Mobile data amount There were 2.2 million subscriptions for standalone mobile broadband services (dongle or router), which is the same as the previous year. The amount of data transferred via mobile networks continued to grow and reached 225,000 TB. This is an increase of 37 per cent, which is larger than in the previous period. This includes both mobile data from mobile voice and data services via smartphones (add-on) and via mobile broadband via router or dongle (separate). An increasingly large amount of traffic was generated by smartphones, making up 41 per cent of mobile data traffic. Broadband The total amount of fixed broadband subscriptions via fibre, cable TV and xdsl increased by a combined 4 per cent to almost 3.4 million. The number of broadband subscriptions via fibre continued to increase (18 per cent) and reached 1.5 million. Group connections where internet subscriptions were included are estimated at almost 562,000, which is the equivalent of 18 per cent of the total amount of private fixed broadband subscriptions. Group connections refer to internet subscriptions that have been signed between the operator and, for example, landlords or housing cooperatives, rather than directly with the end users. One purpose of group connections is to offer the end user lower prices for the same service through an individual agreement. Disadvantages of group connections are that many within the group must join and it is often the case that the agreements have long contract periods. The Swedish Post and Telecom Authority 11

12 Broadband subscriptions offering high-speed downloads continued to increase and amounted to 1.38 million for subscriptions with speeds of 100 Mbit/s or more. This is an increase of 29 per cent. Subscriptions offering high-speed uploads also continued to increase, with 573,000 subscriptions offering upload speeds of 100 Mbit/s or more. Fixed-line telephony Fixed-line telephony continues to decline. On 30 June 2015, there were 3.7 million telephone voice service subscriptions, a decrease of 5 per cent. Of these, 1.8 million were VoIP subscriptions, which increased by 8 per cent. The total number of subscriptions to traditional telephony (PSTN and ISDN) decreased by 14 per cent, to 1.4 million. The proportion of active VoIP subscriptions was estimated at 74 per cent. The proportion of combined subscriptions that include VoIP equated to 83 per cent of the VoIP subscriptions. Of these, an estimated 69 per cent were active. Of the inactive VoIP subscriptions, practically all of them were part of combined subscriptions. Traditional television The number of IPTV subscriptions via fibre increased by 15 per cent to 655,000, with a reduction in other forms of television. The total number of television subscriptions remained at 5.2 million. Would you like to know more? Via the PTS Statistics Portal ( you can search for and assort statistics from the different areas. Data is also available for individual actors. The Swedish Post and Telecom Authority 12

13 Half-year 2015: Table 1 Key data - the market for electronic communications Fixed call services 1H H 2014 Change Subscriptions for fixed telephony (thousands) % of w hich via IP-telephony (thousands) % Outgoing traffic minutes (millions) % Private % Business % Mobile call services and mobile data Mobile subscriptions (thousands) % Private % Business % of w hich active UMTS/CDMA 2000 subscriptions % of w hich subscriptions w hich have used 4G (LTE ) % of w hich mobile broadband as a stand-alone service % of w hich 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 % M2M-subscriptions % Internet services Internet subscriptions (thousands) % Dial-up subscriptions % Broadband subscriptions % via cable television % via fiber and fiber-lan % via xdsl % Mobile broadband subscriptions % of w hich mobile broadband as a stand-alone service % of w hich mobile broadband as an add-on service % TV services Number of subscriptions per distribution platform (thousands) % via cable television % via digital terrestrial television % via satellite % via iptv % via fiber and fiber-lan % via xdsl % via SMATV % Bundled services Number of bundled subscriptions (thousands) % Source: The Swedish Post and Telecom Authority, December 2, The Swedish Post and Telecom Authority 13

14 Correction to The Swedish Telecommunications Market First Half-year 2015 after publication After publication of The Swedish Telecommunications Market First Half-year 2015, Tele2 corrected some of the values it reported, which affects the total development. PTS has therefore updated the existing report. The changes from Tele2 concern the area of mobile voice and data services, and involve and increase of just over 263,000 mobile contract subscriptions for the first half of Tele2 has also corrected revenues from mobile voice and data services within their business segment. The correction involves a decrease of approximately SEK 62.3 million during the first half of The following sections of the report has been updated on account of the corrections: Summary Table: Key Data 2.1 Market development Subscriptions for mobile voice and data services 2.4 Internet services 4.1 Market revenue Mobile voice and data services 5.2 Market shares Mobile voice and data services 5.3 Market shares Broadband The Swedish Post and Telecom Authority 14

15 The Swedish Telecommunications Market First Half-year Aim and method The aim of this report is to chart the development of a large part of the Swedish end-user market for electronic communications. The Swedish Post and Telecom Authority (PTS), has been tasked both with tracking developments in the electronic communications market and promoting competition in that same market. As a part of this task, PTS collects market data and produces market analyses. In addition to PTS's own internal requirements for market data, it is also important that the general public, operators and other businesses and organisations have access to the statistics, which is another reason why PTS publishes market statistics. The Swedish Telecommunications Market report should primarily be regarded as PTS's report of statistics on the electronic communications market, and the focus thus lies on descriptive statistics. The report is also available in a full-year version, which is more comprehensive. The statistics for the first half of 2015 have mainly been collected via an online survey. Number porting data is based on information from Swedish Number Portability Administrative Center (SNPAC) Structure and implementation Data collection The data collection that forms the basis of this report is covered by an obligation to reply, and has been since The data collection for the first half of 2015 was conducted via an online questionnaire distributed to a total of 54 telecommunications companies on 1 July In terms of the number of subscriptions, these companies together make up between 98 and 100 per cent of the market. Data collection continued until September 2015, and the initial dispatch was followed by reminders via e- mail. A few operators that did not respond were reminded via telephone. In October, responses had been received from all companies. However, operator data continues to be collected and adjusted subsequent to the publication of the Swedish Telecommunications Market report, which means that the PTS operator statistics database 2 is continually updated. Information on the number of subscriptions and the amount of traffic for the companies not consulted in the half-year study are estimated based on the The PTS database is available on the PTS statistics portal statistik.pts.se The Swedish Post and Telecom Authority 15

16 The Swedish Telecommunications Market First Half-year 2015 information the companies submitted via the questionnaire from the report Swedish Telecommunications Market 2014 (PTS-ER 2015:19). The telecommunications companies that completed the questionnaire indicated the areas in which they conducted operations over the course of the first half of The number of companies that had operated within the different areas is shown in the table below. Note that a telecommunications company can operate in several areas. Area of operations 1H 2015 Fixed call services 36 Mobile voice and data services 23 Internet services 38 Television services 23 Bundled services 16 Total number consulted 54 For a complete list of the operators that responded, see the attached list of participants in Appendix Discrepancies and updates of data Measurement errors arise for various reasons during the data collection process, which may be due to a number of error sources: Those consulted did not answer all of the questions in the survey Not all operators in the market responded to the survey The responses were misleading due to the fact that it was not possible to produce an exact value based on the company s accounts, the instructions were misunderstood or inadequate, or incorrect information was submitted The measurement errors are judged not to be large and can often be compensated for by starting from previously collected data or by estimating based on related questions in the survey. As the information reported in percentages has been rounded off, the sum of the parts is not always 100 per cent. The Swedish Post and Telecom Authority 16

17 The Swedish Telecommunications Market First Half-year 2015 The historical statistics are revised as PTS obtains corrections and further information. For that reason, the statistics for one and the same year can differ between editions of the report. The latest updated database is available in English on the PTS online statistics portal ( For a more detailed description of measurement errors and non-response, see the attached quality declaration, Appendix Historical information and market shares The development of the market is reported using statistics that, in some cases, go as far back as Since 2006, PTS has also published data on market shares for variables at the end-user level for every collection period. Market shares for a number of different variables are included in the report, but significantly more information is published on the online statistics portal. The variables judged to be inadequate, or which are misleading in another way, are not published on the statistics portal. 1.4 Definitions Definitions that form the basis for this report are also used in the questionnaire, and these definitions are continually revised so that they are in sync with market developments. The segmentation of the individual submarkets can change from year to year. Since 2003, PTS has also considered the information requirements for conducting market analyses and for deciding whether any operator has significant market power. Despite these changes, it is, for the most part, still possible to compare the information with that of previous reports. Types of internet connection With regard to internet services, it is common to mix up expressions such as fixed connection, broadband connection, wireless connection, mobile connection, broadband etc. as there are no standardised accepted definitions. In this report, the terms are defined according to the list below. Dial-up connection Fixed connection Mobile connection Wireless connection Wired connection 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 The Swedish Post and Telecom Authority 17

18 The Swedish Telecommunications Market First Half-year 2015 Broadband connection Mobile broadband Mobile broadband as a stand-alone service Mobile broadband as an add-on service fixed radio, satellite, xdsl, cable television, fibre, fibre LAN, LTE, HSPA, CDMA 2000 In this report, mobile broadband refers to subscriptions to mobile packet data when it is purchased both as a standalone service and as an add-on service Subscriptions primarily used for mobile packet data, and where data access was used at least once during the latest quarter of the period, or where subscription fees were paid during the latest quarter of the period. The subscription must not have generated any voice traffic minutes during the latest quarter of the period. Refers to bundling products where the subscriber purchases at least 1 GB of data traffic per month, either as an add-on service or included in the subscription. In practice, this means smart phones used for both calls and mobile broadband. The terms private customer and business customer In a number of cases, the statistics reported are divided between private and business customers, respectively. The definitions of private and business customers are based on who pays for the services, not who the user is. The criterion for the party paying being designated a business customer (including organisations that are not businesses) is that it has an organisation registration number. The remainder are designated as private customers. This means, however, that businesses and organisations registered under a personal identity number are included in the private customer category. Households From 2013 onwards, Statistics Sweden (Statistiska Centralbyrån; SCB) has changed the method it uses to gather statistics on households, with these now being based entirely on information from registries. Accordingly, PTS has chosen to use the new household data that have become available, beginning in This means that statistics related to the number of households in this report are not completely comparable to the corresponding statistics from previous editions of The Swedish Telecommunications Market, where the data concerning households was based upon replies from private individuals and property owners. The Swedish Post and Telecom Authority 18

19 Thousands The Swedish Telecommunications Market First Half-year Market development Subscriptions All comparisons relate to 30 June 2015 compared with the same point in time in In the figures, 1H2015 means the first half of Mobile call and data services At the end of June 2015 there were 14.4 million active mobile voice and data service subscriptions in Sweden, which is an increase of 2 percent compared with one year earlier. In addition, there were 6.5 million machine-to-machine (M2M) subscriptions, which are not included in the figure above. These are presented in a separate section below. Figure 1 Number of subscriptions for mobile voice and data services H H H H H 2015 Voice only Voice and data, add-on Voice and data (under 1GB) Mobile broadband-standalone The Swedish Post and Telecom Authority 19

20 The Swedish Telecommunications Market First Half-year 2015 Out of the total number of mobile subscriptions at the end of June 2015, 10.6 million were contract subscriptions and 3.8 million were prepaid cards. The trend has been a decline in the percentage of prepaid cards over the past decade and accounted for 26 percent of all subscriptions in June The corresponding share ten years ago was 57 percent. Subscriptions without mobile broadband The number of mobile subscriptions that were used solely for voice services amounted to just over 3.0 million at the end of June This represents a reduction of 283,000 compared with one year ago, and corresponds to an annual reduction of 10 percent. The number of mobile subscriptions that were used for both voice and data, but which did not include add-on subscriptions for mobile broadband (at least 1 GB) was 2.6 million at the end of June This means a decrease of 7% compared with the same point in time one year earlier. Mobile broadband subscriptions The number of mobile broadband subscriptions increased by 9%, totalling slightly more than 8.9 million at the end of June The number of subscriptions for mobile broadband as a stand-alone service 3 was 2.2 million on 30 June 2015, which is the same level as the previous year. Since 2007, the growth rate of mobile broadband as a stand-alone service has decreased annually. The number of subscriptions for mobile broadband as an add-on service 4 totalled 6.7 million at the end of June 2015, which is an increase of 13%. 3 Subscriptions that have only been used for mobile packet data, and not generated any voice traffic during the last quarter of the period. 4 Subscriptions where at least 1 GB data per month was included or purchased as an add-on service. The Swedish Post and Telecom Authority 20

21 Thousands The Swedish Telecommunications Market First Half-year 2015 Subscriptions that used 4G (LTE) At the end of June 2015, there were slightly more than 5 million subscriptions that used services on the 4G (LTE) network, which is an increase of 70% compared with the same date last year. 5 Figure 2 Number of subscriptions that used 4G (LTE) H H H H 2015 Have used 4G (LTE) 2.2 M2M services Subscriptions for machine-to-machine (M2M) services that is, communications among machines are not included in the subscription figures previously reported in this section. 5 To use the 4G network, a user had to have both a SIM card and a terminal that could handle 4G. Beyond this, a subscription was needed to gain access to the network. The Swedish Post and Telecom Authority 21

22 Thousands The Swedish Telecommunications Market First Half-year 2015 Figure 3 Number of subscriptions for M2M services H H H H H H 2015 The number of subscriptions for M2M services amounted to 6.5 million at the end of June 2015, which means an increase of 16 percent compared to the same period the preceding year, when these amounted to slightly more than 5.6 million. Telenor Connexion had nearly 78 percent of M2M subscriptions at the end of June Number portings Number porting is when a telephone number is moved from one operator to another. SNPAC 6, the Swedish Number Portability Administrative Center, collects and publishes statistics on the number of portings in Sweden. The following section is based on data from SNPAC. The number of mobile phones ported totalled 407,000, which is an increase of 30%. The number of fixed-line telephone numbers ported are not included in SNPAC statistics. This is why the number of portings, which is lower than the number of ported telephone numbers, is reported below. 6 The Swedish Post and Telecom Authority 22

23 Thousands The Swedish Telecommunications Market First Half-year 2015 Figure 4 Number of portings 7 of fixed and mobile telephone numbers Fixed Mobile During the first half of 2015, the number of portings in Sweden totalled 463,000. Of these, 94,000 were fixed-line and 368,000 were mobile. The number of fixed-line portings decreased by 4 percent. Mobile portings increased 34 percent compared with the preceding period, and it is the highest level since Ported fixed numbers constituted 2.6% of the total number of fixed-line telephony subscriptions in Mobile portings constituted 2.6% of the total number of mobile subscriptions (excluding mobile broadband as a stand-alone service and M2M). Over the past ten years, the proportion of fixed-line numbers ported has increased from 18 percent to 20 percent during the first six months of Over the same period, the share of mobile portings sank from 82% to 80%. 7 The number of portings is reported in the figure. The number of ported numbers may be higher than the number of portings. The Swedish Post and Telecom Authority 23

24 Thousands The Swedish Telecommunications Market First Half-year Internet services At the end of June 2015, the total number of Internet services subscriptions was 12.3 million, which is an increase of nearly 900,000 subscriptions. Figure 5 Number of internet subscriptions H H H H H H 2015 Dial-up Cable-TV Other Mobile broadband, add on xdsl Fibre The number of subscriptions for dial-up internet was 72,000 at the end of June 2015, which is a decrease of 17% since the same date last year. TeliaSonera had 94 percent of all these subscriptions. Dial-up internet constitute one-half percent of the total number of subscriptions for Internet services. The remaining subscriptions for internet services were broadband subscriptions 8. Fixed-line internet connection subscriptions Mobile broadband, stand alone At the end of June 2015, the number of fixed-line broadband subscriptions was 3.3 million, which is 132,000 more subscriptions than on the same date one year earlier. 8 For the definition of broadband, see Section 1.4. The Swedish Post and Telecom Authority 24

25 Thousand subscriptions The Swedish Telecommunications Market First Half-year 2015 Figure 6 Development of broadband subscriptions H H H H H 2015 xdsl Fibre and fibre-lan Mobile broadband, stand alone Cable TV Others Dial-up In recent years, fibre (including fibre LAN) has accounted for the greatest growth of subscriptions for fixed-line broadband. The number of subscriptions via fibre increased by 232,000 (or 18%), totalling 1.5 million at the end of June Fibre subscriptions with a download speed of 100 Mbit/s or more totalled 1.1 million (an increase of 25 percent) while broadband subscriptions via cable television with the same speed totalled 285,000 (an increase of 45 percent). The number of subscriptions for other fixed-line broadband connections 9 was 11,000 at the end of June 2015, which is the same level as the year before. The share of broadband subscriptions via fibre and via xdsl respectively totalled 41 percent of all fixed-line (wired) broadband subscriptions at the end of June 2014; see Figure 7. One year later, the share of subscriptions via fibre increased to 46 percent, while the share of xdsl sank correspondingly to 35 percent. 9 Other fixed-line broadband connections includes fixed-line radio and satellite. The Swedish Post and Telecom Authority 25

26 Thousands The Swedish Telecommunications Market First Half-year 2015 Figure 7 Share of fixed-line broadband subscription per technology 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1H H H H H H 2015 Dial-up xdsl Cable-TV Fibre Other Number of group connections on fixed-line broadband subscriptions Nearly 562,000 broadband subscriptions were reported as being group connections at the end of June 2015, which corresponds to 18 percent of the total number of private fixed-line broadband subscriptions. Group connections means active, private internet subscriptions signed, for example, with landlords, housing associations, cooperatives or residents associations instead of directly with the end customer. Of these group connections, 93 percent were subscriptions from Com Hem, TeliaSonera and Telenor. 26 percent of the private broadband subscriptions via cable television, 22 percent of fibre subscriptions and 7 percent of xdsl subscriptions were group connections. Just over half of the group connections were bundled 10. One purpose of group connections is to offer lower prices to end customers; in many cases the prices in group connections can be less than half of the price for the same service through an individual agreement. Two disadvantages of percent of those who responded to the question about group connections were bundled, although Com Hem could not respond to this question. The Swedish Post and Telecom Authority 26

27 The Swedish Telecommunications Market First Half-year 2015 group connections are that many in the group need to connect, and that the contracts often have relatively long durations. Mobile broadband subscriptions The number of mobile broadband subscriptions totalled slightly more than 8.9 million in the first half of 2015, which is an increase of 10%. Compared with the previous year, the number of subscriptions for mobile broadband as an add-on service increased 13%, totalling 6.7 million at the end of June Mobile broadband as a stand-alone service totalled 2.2 million subscriptions, which is at the same level as the preceding year. Transmission capacity for broadband subscriptions Internet and broadband services are most often asymmetrical that is, they do not have the same transmission rate for downloaded data as for uploaded data. This applies chiefly to services delivered with xdsl or cable television technology. Symmetrical services are more common for fibre networks. Operators most often offer higher speed for downloaded data than for uploaded data. Currently, subscriptions for broadband via fibre and cable television networks have been upgraded to Docsis 3.0, which has the technical possibility of managing transmission capacities downstream of at least 100 Mbit/s. There may, however, be a large difference between the speed a technology can handle, the speed a consumer subscribes to through a broadband supplier, and the speed a customer can obtain in practice. Throughout this report speed refers to the speed the customer subscribes to. The actual speed the consumer receives may be lower, especially where broadband services in the mobile networks are concerned. The Swedish Post and Telecom Authority 27

28 Thousands The Swedish Telecommunications Market First Half-year 2015 Figure 8 Breakdown of speeds 11 for downloading of data fixedline broadband 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1H H H H H H 2015 Dial-up xdsl Cable-TV Fibre Other Download speeds fixed-line broadband The number of subscriptions with a high transmission capacity continues to increase, whilst those with lower speeds are declining. In June 2015 there were slightly over 1.3 million subscriptions with speeds of 100 Mbit/s or more, which is an increase of 29%. This speed interval is now the most common, comprising 40 percent of all subscriptions. Fibre subscriptions with a download speed of 100 Mbit/s or more totalled 1.1 million (an increase of 25 percent) and cable television totalled 285,000 subscriptions (an increase of 45 percent). Subscriptions with 1000 Mbit/s increased by 41%, totalling 20,000 at the end of June At the end of June 2015, there were 524,000 fixed-line broadband subscriptions with speeds from 30 to 100 Mbit/s, an increase of 111% compared with the same point in time a year earlier. Subscriptions with speeds from 10 to 30 Mbit/s numbered 824,000, which is a decrease of 25%. At the same time, subscriptions with speeds of 2 to 10 Mbit/s decreased by 22%. Subscriptions with speeds over 144 kbit/s and under 2 Mbit/s 11 Speed refers to the speed subscribed to, and not the speed actually measured. The Swedish Post and Telecom Authority 28

29 The Swedish Telecommunications Market First Half-year 2015 represented the largest decrease. At the end of June 2015, these totalled 20,000, which is a decrease of 37% compared with the same point in time the previous year. Figure 9 Breakdown of speed 12 for data upload fixed-line broadband 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1H H H H H H 2015 > 144 kbit/s - 2 Mbit/s 2-10 Mbit/s Mbit/s Mbit/s >=100Mbit/s and over Of the total 1.5 million fixed-line broadband subscriptions via fibre, 70% had a speed of 100 Mbit/s or more at the end of June Meanwhile, 46 percent of broadband subscriptions via cable television had speeds of 100 Mbps or more. Upload speeds fixed-line broadband Fixed-line broadband subscriptions with an upload speed of 100 Mbps or more increased by 38 percent to 623,000 subscriptions at the end of June, The number of fixed-line broadband subscriptions with an upload speed between 30 and 100 Mbps increased by 31 percent and was 125,000. At the end of June 2015, there were 1.5 million subscriptions with speeds from 10 to 12 Speed refers to the speed subscribed to, and not the speed actually measured. The Swedish Post and Telecom Authority 29

30 The Swedish Telecommunications Market First Half-year Mbit/s, an increase of 36% since the same point in time the previous year. This interval now comprises the largest share, 43%, of all fixed-line broadband subscriptions. Nine hundred thousand fixed-line broadband subscriptions had an upload speed of 144 Kbps to 2 Mbps. These subscriptions decreased by 30%. An increasing number of subscriptions are being marketed with symmetrical transmission speeds upstream and downstream. This is as a consequence of the share of fibre subscriptions increasing. The main difference in the proportion of subscriptions with high transmission speeds upstream and downstream may be due to subscriptions with symmetrical speeds usually being more expensive than those with asymmetrical speeds. Another probable explanation is that it is not possible, or very unusual, to be able to deliver symmetrical speeds with xdsl technology and in cable television networks. 2.5 Fixed call services At the end of June 2015 there were barely 3.7 million fixed-line telephony subscriptions, which can be compared with 3.8 million subscriptions one year earlier. This is a decrease of 5% in one year. The Swedish Post and Telecom Authority 30

31 Tusentals The Swedish Telecommunications Market First Half-year 2015 Figure 10 Number of subscriptions for fixed-line telephony H H H H H H 2015 PSTN GTA ISDN Ip-telefoni Of the fixed-line subscriptions, a little over 2.7 million were private, which if they are related to the just over 4.2 million 13 households in Sweden means that around 64% of Sweden s households had a fixed-line telephony subscription at the end of June The number of subscriptions for fixed-line telephony via PSTN 14 and ISDN 15 continued to decrease, while the number of IP telephony subscriptions continued to increase, comprising 49 percent of all fixed-line telephony subscriptions at the end of June According to SCB there were 4.27 million households in Sweden on 31 December Note that this number is not fully comparable to the information concerning the number of households used The Swedish Telecommunications Market for the first half of 2013 and earlier. For more information, see Section The Public Switched Telephone Network (PSTN) is the traditional public telecommunications network. 15 The Integrated Services Digital Network (ISDN) is an upgrade standard for digital telephony, which means an upgrade of the traditional copper network that provided two channels per subscriber line. The Swedish Post and Telecom Authority 31

32 The Swedish Telecommunications Market First Half-year 2015 Subscriptions via PSTN There were 1.8 million subscriptions for fixed-line telephony via PSTN on 30 June 2015, which is a decrease of 14 percent. Of these, 480,000 were via a company other than TeliaSonera via the wholesale product WLR 16. The number of subscriptions via WLR fell by 9 percent compared with the same point in time the previous year. The largest provider of WLR subscriptions was Tele2, with 44 percent. The opportunity to choose an operator other than TeliaSonera for debiting of telephone calls, known as pre-selection 17, was introduced in 1999 and was at its peak in 2003, when there were over 2 million subscriptions for pre-selection. The number has decreased drastically since then. At the end of June 2015 there were 81,000 subscriptions, which is an increase of 20,000 subscriptions. This entire increase, however, is due to Tele2 changing its reporting routines. 18 Subscriptions via ISDN At the end of June 2015 there were more than 81,000 subscriptions, which is a decrease of 8%. ISDN connections can have up to 30 simultaneous users on the same connection. With its 13,000 subscribers, TeliaSonera has 17 percent of all ISDN subscriptions. IP telephony subscriptions Apart from traditional, fixed-line circuit-switched telephony, operators offer VoIP (Voice over IP, also called broadband telephony) as a service. This is done through connection over the IP network that the operator itself controls, as opposed to connection via the Internet. This kind of IP telephony has service and quality corresponding to the traditional circuit-based technology. There were nearly 1.8 million subscriptions for IP telephony at the end of June 2015, which is an increase of 8 percent. The number of IP-based subscriptions have increased constantly over the last few years, but the growth rate has now started to subside. They constituted 49 percent of all subscriptions for fixed- 16 WLR is an abbreviation for Wholesale Line Rental. It means that the subscriber can pay both subscription fees and call charges to another operator than Telia. Before WLR was introduced in 2004, many subscribers paid a subscription fee to Telia and a traffic bill to another telecommunications company ( pre-selection telephony ). 17 Refers to active pre-selection customers where the customer is indirectly connected. Active means that the customer has made at least one call during the last quarter of the measurement period. Note that if a customer has different pre-selections for national and international calls, this is only equivalent to one customer. This is equivalent to the English Carrier Pre-Select (CPS). Refers to pre-selection for both PSTN and ISDN. 18 Tele2 now reports subscriptions as pre-selection subscriptions instead of the previous prefix subscription, since all the customers are indirectly connected. The Swedish Post and Telecom Authority 32

33 The Swedish Telecommunications Market First Half-year 2015 line telephony in June IP telephony accounted for more than half (54%) of all private fixed-line telephony subscriptions, and 32 percent of business subscriptions. The number of IP telephony subscriptions via xdsl totalled 625,000 at the end of June 2015, which represents an increase of 2 percent since the same date a year previously. At the same time, IP telephony subscriptions via cable television was unchanged at 342,000 at the end of June The number of IP telephony subscriptions via fibre or fibre LAN was 541,000 at the end of June 2015, which is increase of 17,000, or 3 percent, compared with the same date one year before. The number of subscriptions via other IP-based access 19 increased by 98,000, or 54 percent, totalling 277,000 at the end of June Com Hem, TeliaSonera and Telenor (including Glocalnet and Bredbandsbolaget) are the largest operators in IP telephony, and together have over 73 percent of all subscribers. Active and inactive IP telephony subscriptions The share of active IP telephony subscriptions (xdsl, cable television, LAN or other IP-based access) totaled 74 percent at the end of June Active subscriptions means those that have generated traffic (incoming or outgoing calls) over the latest 3-month period. There may be other definitions of an active account, such as one that is paid up. This question was first asked as part of The Swedish Telecommunications Market First Half-year 2015; 91 percent of the operators were able to answer the question. The share is calculated based on the number that responded to the question. Some operators estimated the answer to this question; for example, TeliaSonera states that the share of active subscriptions is estimated at 60 percent and that all VoIP are bundled. The number of active IP telephony subscriptions totalled million at the end of June The difference between private and business subscriptions was relatively large: the share of active private IP telephony was 72 percent, while business subscriptions were 98 percent. 19 The operators state in the comments what is being referred to. Here follow the descriptions indicated by the three who correspond to approximately 60 percent of these subscriptions: VoI Over the Top and we cannot determine the access form, Manage Voice fixed-line connections, and Internet, Internet Pro and IP-VPN 20 This question was first asked as part of The Swedish Telecommunications Market First Half-year 2015; 91 percent of the operators were able to answer the question. The total number of active subscriptions may therefore be somewhat higher. The share is calculated based on the number that responded to the question. The Swedish Post and Telecom Authority 33

34 The Swedish Telecommunications Market First Half-year 2015 The share of inactive IP telephony subscriptions was thus 26 percent, which corresponds to around 395,000 subscriptions. Of these, 99 percent of the subscriptions were from Telia and Telenor. The number of bundled subscriptions in which IP telephony is included totalled 868,000 subscriptions. This corresponds to 83 percent of the IP telephony subscriptions. Of these bundled subscriptions in which IP telephony is included, 69 percent were active. This corresponds to 31 percent, or around 388,000 inactive bundled IP telephony subscriptions. 2.6 Television services Traditional television This section describes the changes to the number of subscriptions for traditional, linear television that follows a set schedule. Television channels such as SVT1, TV3 and Eurosport are packaged to be offered to end-users in the form of different subscriptions. In order for the channels' content to reach the end-user, it is necessary to have a programme broadcast service that is distributed by a network operator. Traditional television is distributed to the consumer via different distribution platforms such as cable, satellite, terrestrial network or broadband. Television via broadband is distributed via fibre, fibre LAN or xdsl. The viewer figures for traditional television during the first half of 2015 stood at the same level as one year earlier, according to MMS, the measurement company. The percentage of those who have watched at least 5 consecutive minutes of television on an average day was 67 percent for the first half of 2015, compared with 67.7 percent the previous year. The number of minutes on average that audiences have watched on television also remained unchanged at 161 minutes per day (compared with 160 a year earlier). 21 Seen over a longer period, viewing times for traditional television fell sharply due to an increasing number of people using streaming services. 22 More on streaming services can be found in the Section Other ways to watch television or video. In PTS statistics, the number of traditional television subscriptions continues to decrease. At the end of June 2015, the total number of television subscriptions totalled barely 5.2 million, which is a decrease of 21,000 subscriptions compared to the same time the previous year. Since 2012, the number of television subscriptions has decreased annually. 21 MMS Tv-tittande, Half-year reports for 2014 and Streamingtjänster ersätter tablå-tv:n, SVT, 3 juni, 2014 The Swedish Post and Telecom Authority 34

35 Tusentals The Swedish Telecommunications Market First Half-year 2015 More than half (54 percent) of the television subscriptions are distributed via digital technologies, such as the terrestrial network, digital cable television, satellite and IP television (fibre, fibre LAN or xdsl), and the remainder (46 percent) via analog cable television. This distribution has remained relatively constant since The number of subscriptions for television services is greater than the number of households as some households have more than one subscription. Several households, for example, have two or three cable television subscriptions, and some households have an analog cable television subscription and an IP television subscription to watch digital television. Figure 10 shows the development in the number of subscriptions. Figure 11 Number of television subscriptions per distribution platform Analogue cable TV incl SMATV Digital Cable TV Terrestrial (pay TV) Satellite Fibre DSL 1H H H H H H 2015 Subscriptions for television via broadband (IP television) continue to increase Television via broadband, known as IP television, consists of television distribution both via fibre and via xdsl. The number of IP television subscriptions continued to increase over the first half of 2015 and has been the largest digital distribution platform since a year ago. The number of IP The Swedish Post and Telecom Authority 35