The Swedish Telecommunications Market First Half Year 2012

Report number

PTS-ER-2012:24 Date

7 November 2012

The Swedish Telecommunications Market first half-year 2012

The Swedish Post and Telecom Authority 2


Report number

PTS-ER-2012:24

File reference

12-6518

ISSN

1650-9862

Authors

Pamela Davidsson, Bianca Kojo Gustafsson, Karin Fransn

The Swedish Post and Telecom Authority

Box 5398 102 49 Stockholm +46 (0)8-678 55 00 [email protected] www.pts.se


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.


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


Contents

Foreword 3

Abstract 8

Sammanfattning 9

1 Aim and method 12

2 Market development - Subscriptions 16 2.1 Fixed call services 16 2.2 Mobile call services and mobile data 19 2.3 Number portability 22 2.4 Internet services 24 2.5 Television services 29 2.6 Bundled subscriptions 35

3 Use Traffic 37 3.1 Call traffic 37 3.2 Messaging services 38 3.3 Mobile data traffic 41 3.4 Traffic with international roaming 42

4 Market development Revenues 44 4.1 Mobile call services and mobile data 44

5 Market shares 48 5.1 Fixed call services 48 5.2 Mobile call and data services 49 5.3 Broadband subscriptions 49 5.4 Television services 52

Appendix 1 List of participants 56 Appendix 2 Service providers in mobile networks, June 2012 57 Appendix 3 Report tables 58 Appendix 4 Quality Declaration 59


Diagrams

Figur 1 Number of subscriptions for fixed telephony ................................................... 16

Figur 2 Number of subscriptions for mobile services and mobile data............................ 19

Figur 3 Number of subscriptions for telematics .......................................................... 22

Figur 4 Portings of numbers for fixed and mobile telephony......................................... 23

Figur 5 Number of subscriptions for Internet services ................................................. 24

Figur 6 Development of number of subscriptions for fixed broadband ........................... 25

Figur 7 Annual growth in broadband subscriptions...................................................... 26

Figur 8 Development of transmission speed for subscriptions of fixed broadband (downstream) ........................................................................................ 27

Figur 9 Development of transmission speed for subscriptions of mobile broadband (downstream) ........................................................................................ 28

Figur 10 Distribution of transmission speed for subscriptions on fixed broadband (upstream) ............................................................................................ 29

Figur 11 Development of subscriptions for television services ...................................... 30

Figur 12 Number of subscriptions for television via broadband ..................................... 32

Figur 13 Television subscriptions distributed by kind of housing ................................... 34

Figur 14 Number of bundled subscriptions ................................................................. 35

Figur 15 Number of outgoing traffic minutes ............................................................. 37

Figur 16 Development of number of SMS sent and number of SMS per subscription and month ................................................................................................... 39

Figur 17 Development of number of MMS sent and number of MMS per subscription and month ................................................................................................... 40

Figur 18 Development of mobile data traffic .............................................................. 41

Figur 19 Traffic and SMS sent with international roaming ............................................ 42

Figur 20 Revenues from end users for mobile call and data services ............................. 44

Figur 21 Revenues from swedish subscribers abroad .................................................. 45

Figur 22 Development of revenues from international roaming within EU countries ........ 46

Figur 23 Market shares- subscriptions for fixed call services ........................................ 48

Figur 24 Market shares- Subscriptions for mobile call and data services ........................ 49


Figur 25 Market shares- subscriptions for all broadband.............................................. 50

Figur 26 Market shares- subscriptions for fixed broadband .......................................... 51

Figur 27 Market shares- subscriptions for mobile broadband ....................................... 52

Figur 28 market shares- subscriptions for television services ....................................... 53

Figur 29 Market shares- subscriptions for digital television services .............................. 54


Abstract

Both subscriptions for and the use of fixed call services continued to reduce during the first half-year of 2012. 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 2012.

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 2011.

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 2012. Mobile broadband represented a large proportion of this increase. There were 6.2 million mobile broadband subscriptions at the end of June 2012. 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 977 000 at the end of June 2012. Of the fixed broadband, just over one-fifth (615 000) had a subscription with a speed for downloading data of at least 100 Mbps, while only three per cent (just over 100 000) 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 312 000 at the end of June 2012, corresponding to an increase of 47 per cent in one year.


Sammanfattning

Abonnemang och anvndning av fasta samtalstjnster fortsatte att minska under frsta halvret 2012. I slutet av juni fanns det 4,3 miljoner abonnemang p fast telefoni. Av dessa var 3,2 miljoner privata vilket innebr att 72 procent av hushllen hade ett fast telefonabonnemang i slutet av juni 2012. En tredjedel av alla abonnemang p fast telefoni var ip-baserade i slutet av juni 2012.

Samtalstrafiken frn de fasta nten minskade under frsta halvret 2012 jmfrt med samma period ett r tidigare medan trafiken frn mobilnten fortsatte att ka. Det innebar att 59 procent av all samtalstrafik kom frn mobila nt medan 41 procent ringdes frn fasta nt.

Totalt sett ringdes frre samtal och frre minuter frn fasta och mobila nt under frsta halvret 2012 jmfrt med frsta halvret 2011.

Det totala antalet sms som skickades frn mobiltelefoner var 8,1 miljarder under frsta halvret 2012 vilket innebr att det r frsta gngen vi noterar en nedgng i totalt antal skickade sms. Det skickades 114 miljoner mms under frsta halvret 2012 vilket r fler n under ngot tidigare halvr.

Mngden mobil data som skickades i nten kade med 73 procent under frsta halvret 2012 jmfrt frsta halvret 2011, vilket r en lgre kningstakt n tidigare perioder.

Nr svenska abonnenter befinner sig utomlands ringde de och tog emot samtal i lika stor utstrckning som tidigare, men de snder fler sms och skickade mer data n tidigare r.

Abonnemangen p mobila data och samtalstjnster fortsatte att ka och var 13,7 miljoner i slutet av juni 2012. Mobilt bredband stod fr en stor del av kningen. De mobila bredbanden var 6,2 miljoner i slutet av juni 2012 vilket r mer n dubbelt s mnga som abonnemangen p fast bredband som vid samma tidpunkt var 3,1 miljoner. Av de fasta bredbanden har fiber och fiber_LAN fortsatt att ka till 977 000 i slutet av juni 2012. Av de fasta bredbanden var det drygt en femtedel, 615 000, som hade ett abonnemang med en hastighet fr nedladdning av data p minst 100 Mbit/s medan endast tre procent (drygt 100 000) hade en uppladdningshastighet om minst 100 Mbit/s.

Ip-tv via fiber r det distributionsstt som fortsatt str fr den strsta delen av kningen av abonnemang p den svenska tv-marknaden. Antalet abonnemang p ip-tv via fiber var 312 000 i slutet av juni 2012, vilket motsvarar en kning p 47 procent p ett r


Half-year 2012: Table 1 Key data - the market for electronic communications

First half year

2012 First half year

2011 Change

Fixed call services

Subscriptions for fixed telephony (thousands) 4 321 4 617 -6%

of which via IP-telephony (thousands) 1 395 1 252 11%

Outgoing traffic minutes (millions) 8 347 9 534 -12%

Private 4 603 5 451 -16%

Business 3 744 4 083 -8%

Mobile call services and mobile data

Mobile subscriptions (thousands) 13 721 12 997 6%

Private 10 543 10 081 5%

Business 3 178 2 916 9%

of which active UMTS/CDMA 2000 subscriptions 10 493 8 159 29%

of which active 4G (LTE ) subscriptions 83 9 871%

of which mobile broadband as a stand-alone service 2 051 1 835 12%

of which mobile broadband as an add-on service 4 158 2 280 82%

Outgoing traffic minutes (millions) 12 024 11 573 4%

Number of SMS sent (millions) 8 115 9 163 -11%

Number of MMS sent (millions) 114 90 28%

Traffic for mobile data services (Tbyte) 73 290 42 314 73%

Revenues from mobile subscriptions, SMS, MMS and mobile data traffic (SEKm) 13 525 0

Private 8 907 0

Business 4 618 0

Subscriptions for telematics services 3 394 2 668 27%


Half-year 2012: Table 1 Key data - the market for electronic communications

Internet services

Internet subscriptions (thousands) 9 473 7 348 29%

Dial-up subscriptions 208 227 -8%

Broadband subscriptions 3 056 3 006 2%

via cable television 593 592 0%

via fiber and fiber-LAN 977 851 15%

via xDSL 1 470 1 547 -5%

Of wich broadband subscriptions 100 Mbps and over 615 480 28%

Mobile broadband subscriptions 6 209 4 116 51%

of which mobile broadband as a stand-alone service 2 051 1 835 12%

of which mobile broadband as an add-on service 4 158 2 280 82%

Television services

Number of television subscriptions (thousands) 5 295 5 209 2%

of which analogue television 2 382 2 414 -1%

of which digital television 2 913 2 796 4%

of which IPTV 597 484 23%

Bundled services

Number of bundled subscriptions (thousands) 1 547 1 406 10%



1 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 PTSs 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 PTSs 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 web-based questionnaire.

1.1.1 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 2003.

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 e-mail 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 PTSs database1 for operator statistics is being continuously updated.

1 PTSs database is available on the PTS statistics portal, statistik.pts.se



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 2011.2

The stakeholders participating state in the questionnaire the areas in which they have conducted operations during the first half-year of 2012. 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 half-year 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 57 96-100

See the attached List of participants, Appendix 1, for a complete list of which operators have responded within which areas.

1.1.2 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 businesss accounts, instructions

2 PTS-ER 2012:17



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.

1.1.3 Historical information and market shares

Market development is reported by statistics, which in some cases stretch back to 1992. 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.

1.1.4 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 PTSs 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



common definition. In the Swedish Telecommunications Market the terms are defined according to the following list:

Dial-up connection PSTN, ISDN

Fixed connection PSTN, ISDN, fixed radio, satellite, xDSL, cable television, fibre, fibre LAN

Mobile connection LTE, HSPA, CDMA 2000, UMTS, EDGE

Wireless connection fixed radio, satellite, LTE, HSPA, CDMA 2000, UMTS, EDGE

Wired connection PSTN, ISDN, xDSL, cable television, fibre, fibre LAN

Broadband connection fixed radio, satellite, xDSL, cable television, fibre, fibre LAN, LTE, HSPA, CDMA 2000

Mobile broadband 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.

Mobile broadband as a stand-alone 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.

Mobile broadband as an add-on service

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.



2 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

Of these fixed subscriptions, just more than 3.2 million were private which, if related to the nearly 4.5 million3 households in Sweden, means that 72 per cent of households had a fixed telephony subscription at the end of June 2012.

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 2012.

3 SCB: Population 30 June 2012: 9 514 406; with 2.1 persons per household, that equals 4 530 000 households.

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2.1.1 Reduction in subscriptions for telephony via PSTN

There were 2 831 000 subscriptions for fixed telephony via PSTN on 30 June 2012. Of these, 698 000 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 pre-selection. The number has reduced since then, and at the end of June 2012 the number was 171 000. This is a reduction of 15 per cent compared with one year before.

2.1.2 Reduction also in subscriptions for ISDN

At the end of June 2012, there were 96 000 subscriptions for ISDN. This is a reduction of 7 per cent since the same time one year before. With just over 58 000 subscribers, TeliaSonera has over half of all ISDN subscriptions.

2.1.3 Subscriptions for IP-based telephony continue to increase

There were 1 393 000 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 1 252 000. 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 509 000 at the end of June 2012, which represents an increase of 17 per cent, or 74 000, since the same date a year previously.

The number of subscriptions for IP-based telephony via cable television reduced during 2012 and was 365 000 on 30 June 2012.

The number of subscriptions for IP-based telephony via fibre or fibre LAN was 353 000 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 165 000 at the end of June 2012.

4 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).



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.

2.1.4 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 7 000 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 4 200. At the end of June 2012 there were 87 000 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 36 000 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.



2.2 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 2.2.4 Subscriptions for telematics below.

Figur 2 Number of subscriptions for mobile services and mobile

data

Of all mobile subscriptions at the end of June 2012, 4 467 000 of these were pre-paid cards and 9 254 000 were contract subscriptions. This means that pre-paid 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

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approximately more than one half of the operators total number of pre-paid cards.

2.2.1 Reduction in subscriptions without mobile broadband

The number of mobile subscriptions that were used solely for call services was 4 062 000 on 30 June 2012. This represents a reduction of 363 000 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 3 450 000 on 30 June 2012. This is just more than one million less than it was at the same point in time one year before.

There were 149 000 private subscriptions for mobile call and data services that had a geographical number linked to them on 30 June 2012. This is a telephone number that is traditionally regarded as being linked with fixed telephony but can also go to mobile telephones.

2.2.2 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 2012.

The number of subscriptions for mobile broadband as a stand-alone service6 was 2 051 000 on 30 June 2012. These have increased from June 2011 until June 2012 by 216 000, which corresponds to an annual growth of 12 per cent.

The number of subscriptions for mobile broadband as an add-on service7 has continued to increase during the first half-year of 2012. On 30 June 2012 they amounted to 4 158 000, which is an increase of 1 878 000 since the same point in time a year ago and corresponds to an

annual increase of 82 per cent. Of these, 891 000 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.



2.2.3 Few subscriptions have used 4G (LTE) during the spring of

2012

The worlds first 4G network was introduced in Stockholm at the end of 2009. In PTSs Broadband Survey8 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 83 000 subscriptions have used services in LTE during the first quarter of 2012.

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 180 000 routers on the Swedish market that had support for LTE, according to information from the supplier Dovado.10

2.2.4 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 PTSs Broadband Survey 2011. www.bredbandskartan.pts.se 9 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.



Figur 3 Number of subscriptions for telematics

The number of subscriptions for telematics services amounted to 3 394 000 on 30 June 2012, representing an increase of 27 per cent from the same period the preceding year, when these amounted to 2 668 000.

Telenor Connection had almost half of all subscriptions in the Swedish market in mid-2012. Other major stakeholders, in terms of number of subscriptions, are Telenor Sverige, TeliaSonera and Wireless Maingate.

2.3 Number portability

SNPAC11 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: www.snpac.se

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Figur 4 Portings of numbers for fixed and mobile telephony

During the first half-year of 2012 a total of 433 000 telephone numbers, of which 135 000 were fixed and 297 000 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 80 000 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 2012. 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).

2.3.1 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

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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

The number of subscriptions for dial-up Internet reduced and amounted to 208 000 on 30 June 2012. 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.12

2.4.1 Fixed Internet connections

The number of subscriptions for fixed broadband was 3.1 million on 30 June 2012, and there were 47 000 more subscriptions than at the same time one year ago. 12 See section 1.1.5 for the definition of broadband'.

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Figur 6 Development of number of subscriptions for fixed

broadband

The number of subscriptions for broadband via fibre and fibre LAN was 977 000 at the end of June 2012, and they represent the entire increase in subscriptions within fixed broadband. This involves an increase of 125 000 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 200 000 subscribers each. Bahnhof Unipessoal, Bredband2 and Tele2 have about 100 000 subscribers each and thereby are the next largest in the market. The other just over 30 stakeholders have together the remaining almost 300 000 subscriptions.

Since the peak in 2008, the number of subscriptions for xDSL has reduced and was 1 470 000 on 30 June 2012. This is a reduction by 76 000 subscriptions since June 2012, which corresponds to an annual reduction of 5 per cent.

The number of subscriptions for broadband via cable television was 593 000 on 30 June 2012, which is an equal number as the same time one year before, but 13 000 less than at the turn of the year.

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The number of subscriptions for other fixed broadband connection13 was 13 000 at the end of June 2012, which is unchanged compared with previous periods.

Figur 7 Annual growth in broadband subscriptions

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.

2.4.2 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 2011. Of the mobile broadband, 33 per cent were subscriptions for mobile broadband as a stand-alone 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 stand-alone 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.

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2.4.3 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)

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 318 000 subscriptions. The number of subscriptions with a speed of 10 Mbps or more was 62 per cent of all subscriptions for fixed broadband.

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The number of subscriptions with a speed of 100 Mbps or more was 615 000 at the end of June 2012. This represents an annual increase of 28 per cent, or 134 000 subscriptions, since the corresponding point in time the year before. The number has increased by 80 000 since 31 December 2011.

Of the total of 977 000 subscriptions for fixed broadband via fibre, there were 505 000 with a speed of 100 Mbps or more at the end of the first half-year of 2012. 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)

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 2012. The corresponding proportion during the first half-year of 2011 was 18 per cent.

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Figur 10 Distribution of transmission speed for subscriptions on

fixed broadband (upstream)

The number of subscriptions for fixed broadband that has an upload speed of 10 Mbps or more was 984 000 during the first half-year of 2012. 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.

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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 SMATV14) amounted to 5.3 million, which is an increase of 85 000 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 167 000 subscriptions since June 2011.

Figur 11 Development of subscriptions for television services

2.5.1 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 32 000

14 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.

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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 39 000, 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 2011.

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 2009.

The number of subscriptions for analogue cable television services including SMATV15 was almost 2.4 million at the end of June 2012. This is a reduction of 32 000 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 14 000 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 2009.

Of the analogue cable television subscriptions, 2.1 million were subscriptions reported from the major television operators.16 The remaining 267 000 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 agencies17 and sell these on to end users. The number of households that receive television via SMATV operators reduced by 13 000 compared with the same period in 2011.

15 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.



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 2006.18

2.5.2 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

The number of subscriptions for IPTV amounted to 597 000 on 30 June 2012, which is an increase of 113 000 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.

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number of subscriptions for IPTV via fibre has increased by 100 000 subscriptions, from 212 000 on 30 June 2011 to 312 000 on 30 June 2012. IPTV via fibre19 is the means of distribution that continued to have the greatest increase in the number of subscriptions, and now has more subscriptions than IPTV via xDSL. The number of subscriptions for IPTV via xDSL has during the same period increased by 12 000 to 285 000 at the end of June 2012.

2.5.3 Television via satellite continues to reduce

The number of subscriptions for digital television via satellite was 644 000 at the end of June 2012, which is a reduction of 2 000 subscriptions in one year.

2.5.4 Development of number of subscriptions for television services via the digital terrestrial network

On 30 June 2012 there were 612 000 subscriptions for television services in the digital terrestrial network, which is a reduction of 25 000 subscriptions from the same time one year before when there were 637 000 subscriptions, but this is an increase of 5 000 subscriptions since December 2011.

The households that receive only free television via the digital terrestrial network are not included in the statistics. As free television viewers do not take out a subscription contract in order to gain access to free television, it is uncertain exactly how many households receive only free television and do not subscribe for television services. According to surveys20, on the assignment of among others PTS, between 7.9 and 10 per cent of households have free television as a sole means of reception for television in their permanent home. This corresponds to between 360 000 and 450 000 households.

The households that receive only free television via the digital terrestrial network are not included in the statistics. As free television viewers do not take out a subscription contract in order to gain access to free television, it is uncertain exactly how many households receive only free television and do not subscribe for television packages. According a survey on the assignment of

19 IPTV via fibre refers to IPTV via fibre or fibre LAN. 20 On the assignment of PTS, TNS-SIFO conducted two surveys of Hushllens avvndning av fri-tv [Household use of free television] during 2011 and 2012. According to the survey of 2011, the number of households that watched only free television in their permanent home amounted to 7.4 per cent, and 2012 to 7.9 per cent; PTS File ref. 11-9384. In the report SVT:s tckningskrav [Sveriges Televisions (SVT) coverage requirements], AB Stelacon has made a rough estimate that shows that those who use only free television in the terrestrial network could comprise about 10 per cent of households. The number of households with only free television in 2012 is in line with the information published by Teracom in Teracoms Interim Report January - June 2012, p. 6.



PTS21, 7.4 per cent of households have free television as a sole means of reception for television in their permanent home. This corresponds to 330 000 households.

2.5.5 Subscriptions for television services broken down according to form of housing

The households that receive analogue or digital cable television are located primarily in multiple occupation properties (76 and 81 per cent, respectively).

Figur 13 Television subscriptions distributed by kind of housing

Those households that have subscriptions for IPTV via fibre also live primarily in multiple occupation properties (75 per cent), while households that receive IPTV via xDSL primarily live in detached houses, terrace houses and semi-detached houses (80 per cent). Information about form of housing is estimated by the operators, as there are no exact values. There is no information at all

21 On the assignment of PTS, TNS-SIFO has conducted a survey of Hushllens avvndning av fri-tv 2011 [Household use of free television 2011]. File ref. 11-9384. In the report SVT:s tckningskrav [Sveriges Televisions (SVT) coverage requirements], AB Stelacon has made a rough estimate that shows that those who use only free television in the terrestrial network could comprise about 10 per cent of households. The number of households with only free television in 2011 is in line with the information published by Teracom in Teracoms Interim Report January - June 2012, p. 6.

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about the distribution of form of housing for households with subscriptions for television via the terrestrial network and satellite.

2.6 Bundled subscriptions

Bundling refers to offers that contain several services, which are offered and marketed as one offer or with one price list. The most common offers on the market include various combinations of telephony, television and broadband.

Figur 14 Number of bundled subscriptions

The number of bundled subscriptions was 1 547 000 on 30 June 2012. Compared with 30 June 2011, this represents an increase of 142 000 subscriptions corresponding to an annual increase of 10 per cent. The most usual forms of bundling still comprised the two services fixed telephony and broadband, which constituted 733 000 subscriptions and represented 47 per cent of all bundled subscriptions.

The next most usual bundling comprised the three services fixed telephony, broadband and television and constituted 624 000 subscriptions, which corresponds to 40 per cent of all bundled subscriptions.

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In aggregate, there were fixed broadband in 1 467 000 of the subscriptions that were bundled, corresponding to 48 per cent of all subscriptions for fixed broadband.

Telia is the largest stakeholder with 41 per cent, or 621 000, of all bundled subscriptions.



3 Use Traffic

3.1 Call traffic

During the first half-year of 2012, outgoing call minutes from mobile networks comprised 59 per cent of all outgoing call traffic, which can be compared with 55 per cent during the first half-year of 2011. The total number of outgoing call minutes reduced during the same period from 21.1 billion to 20.4 billion.

Figur 15 Number of outgoing traffic minutes

The total number of calls from fixed and mobile subscriptions reduced from 7.1 billion during the first half-year of 2011 to 6.8 billion during the same period in 2012. Calls from the mobile networks comprised 67 per cent of all calls made during the first half-year of 2012.

During the first half-year of 2012 the average length of a call for calls from fixed networks was unchanged, 3.7 minutes compared with the previous year, while the length of calls from mobile networks increased during the same period from 2.6 to 2.7 minutes.

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3.1.1 Reduction in call traffic from fixed telephones

The number of outgoing call minutes from the fixed network reduced from 9.5 billion during the first-half-year of 2011 to 8.3 billion during the first half-year of 2012, which corresponds to a reduction of 13 per cent.

The average number of call minutes per call subscription and month also fell, from 340 minutes per month during the first half-year of 2011 to 316 minutes per month during the first half-year of 2012. This corresponds to a reduction of 7 per cent, or 24 minutes per month.

The number of outgoing call minutes from IP telephony also reduced. During the first-half of 2011 they were 1.6 billion and one year later 1.5 billion, which corresponds to a reduction of 7 per cent.

The number of calls from fixed network subscriptions reduced from 2.7 billion during the first half-year of 2011 to 2.3 billion during the corresponding period of 2012.

3.1.2 Increase in call traffic from mobile telephones

The total number of outgoing call minutes from mobile telephones increased from 11.6 billion during the first half-year of 2011 to 12.0 billion during the first half-year of 2012. The average number of call minutes from a mobile subscription reduced from 174 minutes per month to 173 minutes per month during the first half-year of 2012 compared with the same period the preceding year.

Just more than 4.5 billion calls were made from the mobile networks during the first half-year of 2012, which is a slight increase of about 36 million calls compared with the same period a year ago.

3.2 Messaging services

In the material compiled for the Swedish Telecommunications Market we have only measured the number of SMS messages and MMS messages sent. It is probable that the reason for the reduction in SMS message volumes results from several other services being offered for transmission of messages within the mobile networks, such as iMessage, Viber and chat function apps such as Facebook.

3.2.1 Reduction in the number of SMS messages sent

There were 8.1 billion SMS messages sent from mobile telephones during the first half-year of 2012. This is a reduction of 11 per cent compared with the first half-year of 2011 when 9.2 billion SMS messages were sent. This is the



first time that a reduction in the total number of SMS messages sent can be observed.

Figur 16 Development of number of SMS sent and number of SMS

per subscription and month

The statistics showed already during 2011 that the average number of SMS messages that were sent per subscription and month had started to reduce. This reduction continued during the first half-year of 2012, when there were on average 117 SMS messages sent per subscription and month compared with 138 SMS messages per subscription and month for the corresponding period a year ago.

For the operators Tre and Telenor, the number of SMS messages sent increased somewhat during the first half-year of 2012, while they reduced for the first time for the operators TeliaSonera and Tele2. The average number of SMS messages sent per subscription and month reduced for all operators during the first half-year of 2012.

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There was a great increase during 2011 in the number of SMS messages sent from computer systems.22 This increase continued during 2012, as during the first half-year just more than 1 billion SMS messages were sent, which is an increase of 54 per cent compared with the 720 million that were sent during the first half-year of 2011.

During the first half-year of 2012, 83 million SMS messages were sent from subscriptions for telematics, that is to say from machine to machine; this is a reduction of 42 per cent compared with the corresponding period one year earlier.

3.2.2 Increase in the number of MMS messages sent

The number of MMS messages sent in Sweden increased from 90 million during the first half-year of 2011 to 114 million during the first half-year of 2012, which corresponds to an annual increase of 28 per cent.

Figur 17 Development of number of MMS sent and number of

MMS per subscription and month

22 Known as machine to person. This may, for example, be a reminder of an appointment booked, mass-mailing for advertising or confirmation of a ticket purchased.

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The average number of MMS messages sent per subscription and month increased from 1.3 per month during the first half-year of 2011 to 1.6 per month during the first half-year of 2012.

3.3 Mobile data traffic

Data traffic in the mobile networks continues to increase. The volume of data sent increased by 73 per cent, from 42 300 Terabytes during first half-year of 2011 to 73 300 Terabytes during the first half-year of 2012.

Figur 18 Development of mobile data traffic

The total mobile data traffic can be broken down according to different types of subscription available for mobile data. Subscriptions for mobile broadband as a stand-alone service sent the largest volume of data, 50 500 Terabytes during the first half-year of 2012, which corresponds to two-thirds of all data sent. During the same period, subscriptions for mobile broadband as an add-on service sent 20 000 Terabytes, which means that this has more than tripled since the first half-year of 2011.

The average use per month for the various types of subscription for mobile data is broken down as follows:

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Subscriptions for both voice and data, but without supplement for broadband

134 Mbytes

3.4 Traffic with international roaming

The volume of voice traffic when roaming has been at the same level for the latest measurement periods (first half-year of the last four years), while the volume of SMS messages sent within the EU has continued to increase and also increased during the first half-year of 2012.

Figur 19 Traffic and SMS sent with international roaming

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3.4.1 Unchanged level in call traffic

During the first half-year of 2012, Swedish subscribers abroad made calls for 105 million call minutes, of which 86 million were from EU/EEA countries. This is a slight reduction from the corresponding period in 2011 when calls for 109 million call minutes were made, of which 88 million from EU/EEA countries.

The number of received call minutes for subscribers abroad amounted during the first half-year of 2012 to 75 million, of which 65 million were within EU/EEA countries. This is on the same level as during the corresponding period a year ago.

The number of call minutes made from foreign subscribers who made calls in Sweden amounted to 94 million minutes during the first half-year of 2012, which is a reduction from the corresponding period in 2011 when there were 103 million call minutes.

3.4.2 Swedish subscribers send more SMS messages when they are abroad

Swedish subscribers sent 89 million SMS messages while abroad during the first half-year of 2012, of which 66 million were sent from EU/EEA countries. This represents an increase of 13 per cent compared with the corresponding period a year ago, when 79 million SMS messages were sent, of which 58 million from EU/EEA countries. The foreign subscribers who were in Sweden sent 58 million during the first half-year of 2012 and, of these, 53 million were from subscribers from EU/EEA countries.

3.4.3 Increase in data volumes with international roaming

During the first half-year of 2012, Swedish subscribers used 81 Terabytes of mobile data when they were abroad and roamed. This is an increase of 44 per cent since the first half-year of 2011 when they used 56 Terabytes. Almost all data roaming (78 Terabytes) occurred from EU/EEA countries. Of all data roaming, 77 per cent occurred within networks that formed part of the operators own Group.

Foreign subscribers who were in Sweden used 62 Terabytes during the first half-year of 2012, which is an increase of 85 per cent from the corresponding period in 2011 when they used 33 Terabytes.



4 Market development Revenues

The half-year compilation of data for the Swedish Telecommunications Market has in previous periods not included revenues, but for the first half-year of 2012 information about revenues for mobile call and data services has been gathered.

4.1 Mobile call services and mobile data

During the first half-year of 2012, the total revenues from mobile call and data services amounted to SEK 13.5 billion.

Revenues from telematics and roaming are not included in these figures. The information about the revenues is contained in the next section.

Figur 20 Revenues from end users for mobile call and data

services

Revenues from call services were SEK 7.7 billion during the first half-year of 2012, and comprised 57 per cent of the total revenues. Revenues for mobile data were SEK 3.4 billion, which corresponds to one-fourth of the total revenues. Revenues from SMS messages were SEK 1.2 billion and revenues from MMS message were SEK 0.1 billion. Other revenues amounted to SEK 1.1 billion and include, among other things, call and data revenues from some

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stakeholders that could not break down their subscription revenues into the two kinds of traffic.

4.1.1 Revenues from telematic services

Revenues from telematic services amounted to SEK 254 million during the first half-year of 2012. This corresponds to an average revenue per month and subscription of 13.20 kronor excluding VAT during the first half-year of 2012, which is 1.20 kronor lower than the average for the whole of 2011.

4.1.2 Revenues from roaming

Revenues from Swedish subscribers roaming abroad during the first half-year amounted to SEK 1 160 million, which is a reduction of 9 per cent compared with the same period in 2011 when they were SEK 1 268 million.

Figur 21 Revenues from swedish subscribers abroad

Revenues from voice calls made and received were SEK 725 million during the first half-year of 2012, which corresponds to 63 per cent of the total roaming revenues from end users. Revenues from SMS messages were SEK 120 million, which corresponds to 10 per cent of the total revenues, while revenues from mobile data amounted to SEK 315 million, which comprised 27 per cent of the total roaming revenues when Swedish subscribers were abroad and used

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their Swedish subscription. Compared with the same period a year ago, the proportion of revenues from data and SMS messages increased, while those from voice calls have reduced.

Figur 22 Development of revenues from international roaming

within EU countries

The average revenues per minute during the first half-year of 2012 for calls made from Swedish subscribers who were abroad in another EU country were 2.92 kronor per minute; this is a reduction of 0.45 kronor per minute since the corresponding period in 2011 when it was 3.37 kronor per minute.

The average revenues per minute during the first half-year of 2012 for calls received by Swedish subscribers who were abroad in another EU country were 1.03 kronor per minute; this is a reduction of 0.37 kronor per minute since the corresponding period in 2011 when it was 1.40 kronor per minute.

The average revenues per SMS message during the first half-year of 2012 for SMS message sent by Swedish subscribers who were abroad in another EU country were 0.89 kronor per SMS message; this is a reduction of 0.15 kronor per SMS message since the corresponding period in 2011 when it was 1.04 kronor per minute.

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EK

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SMS Calls received Calls made



The average revenues per Mbyte of data during the first half-year of 2012 for data used by Swedish subscribers who were abroad in another EU country were 8.01 kronor per Mbyte; this is a reduction of 12.45 kronor per Mbyte since the corresponding period in 2011 when it was 20.47 kronor per Mbyte. The average revenues per Mbyte of data during the first half-year of 2012 for data used by Swedish subscribers who were abroad in a country outside the EU were 57.06 kronor per Mbyte.



5 Market shares

The market shares for all stakeholders asked are available on the PTS statistics portal, (statistik.pts.se) under the tab Swedish Telecommunications Market. Market shares calculated for revenues, traffic and subscriptions for the full-years 2006 to 2011 are available. Market shares calculated for traffic and subscriptions only are available for the half-years during the same period.

The market shares in this Chapter are based on the number of subscriptions on 30 June of the respective year, unless otherwise stated.

5.1 Fixed call services

The market shares for fixed call services include all subscriptions for fixed call services, but not pre-selection and prefix subscriptions.

Figur 23 Market shares- subscriptions for fixed call services

TeliaSoneras market share reduced from 61.6 per cent to 61.2 per cent between 30 June 2011 and 30 June 2012. The market share for Tele2 has also reduced during the same period. Telenor and Com Hems market shares increased slightly. The other stakeholders aggregate market share increased most, from 11.0 per cent at the end of June 2011 to 12.3 per cent at the end of 2012.

76,772,1 68,8 66,0 62,9 61,6 61,2

10,411,3

12,512,7

12,7 11,8 10,5

5,86,8 7,3

7,77,9

7,5 7,6

2,2 4,1 5,4 6,67,5

8,1 8,3

4,9 5,8 6,0 7,1 9,0 11,0 12,3

0%

10%

20%

30%

40%

50%

60%

70%

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100%

june 2006 june 2007 june 2008 june 2009 june 2010 june 2011 june 2012

Per

cen

t

TeliaSonera Tele2 Telenor Comhem Others



5.2 Mobile call and data services

Market shares for mobile call and data services include all subscriptions for mobile call and data services, but not subscriptions for telematic services.

Figur 24 Market shares- Subscriptions for mobile call and data

services

The operator Hi3G has continued to increase its market share during the first half-year of 2012, which it has done every year since 2006. The market share has increased from 9.3 to 10.3 per cent between 30 June 2011 and 30 June 2012. Telenor has increased its market share from 16.3 per cent to 16.7 per cent during the same period. Telia and Tele2 have reduced their market shares during the same period.

The other operators aggregate market share increased from 2.7 to 3.2 per cent

between 30 June 2011 and 30 June 2012; of these, Lyca Mobile was the greatest with a share of 1.7 per cent of the total market. The remaining had less than 0.5 per cent each.

5.3 Broadband subscriptions

The five largest stakeholders in the market for fixed and mobile broadband were TeliaSonera, Tele2, Telenor, Hi3G and Com Hem. Together, these

43,7 43,3 42,7 41,9 41,1 40,7 39,2

32,6 32,5 31,8 31,8 31,3 31,0 30,6

17,5 17,6 18,1 17,3 16,4 16,3 16,7

4,5 5,2 6,4 7,8 8,7 9,3 10,3

1,8 1,4 1,1 1,2 2,5 2,7 3,2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

june 2006june 2007june 2008june 2009june 2010june 2011june 2012

Per c

en

t

TeliaSonera Tele2 Telenor Hi3g Others



stakeholders represented 96 per cent of all subscriptions in the broadband market.

5.3.1 Broadband in total

TeliaSonera, which is the largest stakeholder in the broadband market viewed as number of subscriptions, reduced its market share slightly between 30 June 2011 and 30 June 2012.

Figur 25 Market shares- subscriptions for all broadband

Com Hems market share reduced during the year from 7.5 to 5.9 per cent. Tele2s market share increased from 15.7 to 17.0 per cent during the same period. Telenors market share increased slightly, and similarly Hi3Gs market share which increased from 9.4 till 10.9 per cent.

5.3.2 Fixed broadband

TeliaSonera, Tele2, Telenor and Com Hem represented together 81 per cent of the total market for fixed broadband, viewed as number of subscriptions.

38,9 39,1 38,7 36,3 36,6 36,2

5,4 8,59,9 11,9

15,7 17,0

24,6 20,920,1 22,1

21,3 21,4

0,9 3,65,6

8,99,4 10,916,0 14,5

12,810,1

7,5 5,914,2 13,3 12,9 10,7

9,5 8,5

0%

10%

20%

30%

40%

50%

60%

70%

80%

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june 2007june 2008june 2009june 2010june 2011june 2012

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en

t

TeliaSonera Tele2 Telenor Hi3g Comhem Others



Figur 26 Market shares- subscriptions for fixed broadband

For TeliaSonera the market share increased somewhat from 37.9 per cent on 30 June 2011 to 38.2 per cent on 30 June 2012. The market shares for Tele2, Telenor and Com Hem reduced during the same period, while the other operators aggregate market share increased the most, from 19.4 to 20.3 per cent.

5.3.3 Mobile broadband

For the years 2007 and 2008, market shares are shown based on mobile broadband as a stand-alone service and for the years 2009 to 2012 as the total number for mobile broadband as a stand-alone service and mobile broadband as an add-on service.

38,2 39,0 38,7 38,2 37,9 38,2

4,7 5,5 6,2 7,6 7,6 7,4

24,7 22,3 20,3 18,6 17,2 16,3

17,1 17,6 17,6 18,0 17,9 17,8

15,2 15,6 17,1 17,7 19,4 20,3

0%

10%

20%

30%

40%

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Per c

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TeliaSonera Tele2 Telenor Comhem Others



Figur 27 Market shares- subscriptions for mobile broadband

The market shares for mobile broadband reduced for TeliaSonera and Telenor between 30 June 2011 and 30 June 2012, while they remained unchanged for Hi3G and increased slightly for Tele2.

Instead, the other operators increased their aggregate market share from 2.3 to 2.8 per cent between 30 June 2011 and 30 June 2012. The largest of the other were Alltele with 1.4 per cent of the total market and Netett with 0.9 per cent of the total market.

5.4 Television services

5.4.1 Total number of subscriptions for television services

As regards the total number of subscriptions for television services, Com Hem had the largest market share with 44.8 per cent on 30 June 2012, which is a reduction from 45.1 per cent a year ago.

48,839,7 38,6

34,0 35,6 35,3

14,6

22,419,8

17,321,6 21,7

22,3

14,6 19,426,5

24,2 24,0

14,0

20,6 20,4 20,316,3 16,3

0,1 2,5 1,8 1,9 2,3 2,8

0

10

20

30

40

50

60

70

80

90

100


Per c

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TeliaSonera Tele2 Telenor Hi3g Others



Figur 28 market shares- subscriptions for television services

The group with the others, which comprise Tele2, Telenor and SMATV operators, had the next largest share at the end of June 2012, and this market share increased from 15.5 per cent to 21.2 per cent between 30 June 2011 and 30 June 2012. The reason for the increase is primarily Telenors purchase of the company Canal Digital Kabel. TeliaSonera increased its share of the total television market from 9.4 per cent at the end of June 2011 to 10.3 per cent at the end of June 2012. The other operators reduced all of their shares on the total market for subscriptions for television services.

5.4.2 Subscriptions for digital television services

The six largest stakeholders in the digital pay television market on 30 June 2012 were Com Hem, Boxer, TeliaSonera, Viasat, Tele2 and Canal Digital Sverige. Together they represented 92 per cent of all subscriptions in the digital pay television market.

14,8 14,5 13,9 12,8 12,2 11,6

46,2 45,3 47,0 45,9 46,1 44,8

11,8 12,1 12,2 11,2 10,55,8

3,4 6,67,3

8,2 9,4

10,3

8,1 7,16,8

6,3 6,5

6,4

15,7 14,4 12,8 15,6 15,421,2

0%

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1H2007 1H2008 1H2009 1H2010 1H2011 1H2012

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Boxer Com Hem Canal Digital TeliaSonera Viasat Others

The Swedish Telecommunications Market firs

Documents

The Swedish Telecommunications Market First Half Year 2012