Tele2 Ab Class A · OMXSTO:TEL2_A
Tele2 Ab Class A — Investor Day (December 2014)
18 slides from Tele2 Ab Class A's investor day presentation, Dec 12, 2014
Slide 1: Focused Technology Choices
FOCUSED TECHNOLOGY CHOICES Joachim Horn, Group CTIO
Slide 2: Key focus areas
Key focus areas How we win Focused Winning Value Step-change Technology People & Champion Productivity Choices Culture Selectively push Quality up – Drive down costs new technologies where it matters continuously in all & innovation for our customers areas 2
Slide 3: Fix the basics: network and IT quality
Fix the basics: network and IT quality New technologies Quality up Cost down Total drop rate all countries Priority 1 incidents all countries Projects on time 0.7 100% 40 Drop Rate (%) 0.5 20 0.3 0 50% 2011 2014 2011 2014 2012 2013 2014 3
Slide 4: Quality up - where it matters for the customers
Quality up - where it matters for New technologies Quality up Cost down the customers CTIO customer complaints for technical reasons • Continue to fix the basics in design and operations Target % • Continuously increase quality where it matters for the customer Jan Aug • Voice over LTE (VoLTE) 2014
Slide 5: Customers want more data when moving to LTE
Customers want more data New technologies Quality up Cost down when moving to LTE 3G LTE Today LTE stands for Total Data Usage ~70% of all data usage in Tele2 Sweden Jan Oct 2012 2014 5
Slide 6: Dilemma: more data, higher quality, same cost
Dilemma: more data, New technologies Quality up Cost down higher quality, same cost How to deal with + exponential traffic growth + good quality for our customers + cost efficient transition to new technologies 6
Slide 7: Drive down costs continuously in all areas
Drive down costs continuously in all areas New technologies Quality up Cost down LTE more cost efficient than Busy hour traffic volume • Push for scale 2G and 3G per cell • Invest in spectrum and backhaul 3G Cost/Mb Consolidation of data MByte • centers 4G • Focus on LTE • Near/Offshoring 2013 2017
Slide 8: Good coverage becoming even more important for the end user
Good coverage becoming even more New technologies Quality up Cost down important for the end user % 2012 2013 100 95% 17% 13% indoor coverage 39% 38% with U900 10% 11% 75% 20% indoor coverage 21% 13% 18% without U900 Customer care Service & device portfolio Network coverage Service quality Cost & bi
Slide 9: Low frequencies and fiber backhaul ensure scalability and cost efficiency
Low frequencies and fiber backhaul New technologies Quality up Cost down ensure scalability and cost efficiency 5 Fiber required for speed and capacity at the lowest cost to scale Building a 800/900 MHz network is 5 000 1,000 typically 5x more cost efficient** compared to 2.6 GHz 100 80% Mbit/s 10 4
Slide 10: Tele2's frequency portfolio
Tele2’s frequency portfolio New technologies Quality up Cost down 2G 3G LTE 800 Mhz 900 Mhz 1800 Mhz 2100 Mhz 2600 Mhz Comment Joint Ventures with Telia 2100 MHz and Sweden 10 20 35 20 40 Telenor 800/900/1800/2600 MHz Estonia also have 4.4 MHz in 450 MHz Estonia 10 11 24.3 30 and 1*30 MHz in 2300 MH
Slide 11: Selectively push new technologies and innovation
Selectively push new New technologies Quality up Cost down technologies and innovation New technologies every 10 th year 2G Launched 1990 3G Launched 2001 4G Launched 2010 5G Planned 2020 Current IT legacy structure 11
Slide 12: Selectively push new technologies and innovation
Selectively push new New technologies Quality up Cost down technologies and innovation New technologies every 10 th year 4G is adopted faster than 3G 3G 2G Launched 1990 Data usage 4G 3G Launched 2001 Years 4G Launched 2010 from launch 5G Planned 2020 1 2 3 4 5 6 7 8 9 10 11 Current IT legacy struct
Slide 13: Selectively push new technologies and innovation
Selectively push new New technologies Quality up Cost down technologies and innovation New technologies every 10 th year 4G is adopted faster than 3G How to cope 3G • Retire legacy fast 2G Launched 1990 • IT Blueprint Data usage 4G 3G Launched 2001 • Focus on LTE Years • All IP, virtualization, clou
Slide 14: Superior user experience in LTE
Superior user experience in LTE New technologies Quality up Cost down Speed higher in LTE than in 3G Latency lower in LTE than in 3G Throughput (Mbit/s) 60 120 3G 3G ms 30 60 LTE LTE 0 0 141104 141204 141203 141207 VoLTE quality higher in LTE Data completion success rate higher in LTE Average MOS 10
Slide 15: Customers at Tele2 spend more time on LTE
Customers at Tele2 spend New technologies Quality up Cost down more time on LTE 2014 15
Slide 16: LTE is just at its beginning
LTE is just at its beginning New technologies Quality up Cost down Many new features will easily bridge the time till 5G will be required VoLTE and Video Carrier 5G over LTE LTE roaming aggregation Further enhanced inter-cell Coordinated Mobility load interference multipoint balancing coordination N
Slide 17: 5G is not just a new radio access layer
5G is not just a new radio access layer New technologies Quality up Cost down Holistic user/service centric approach and focus on E2E Massive traffic growth Wide variety and Stringent demands for and high density variability of services New use cases real-time demand consumed communications NGMN Acc
Slide 18: Summary
Summary Selectively push Quality up – Drive down costs new technologies where it matters continuously in & innovation for our customers all areas 18