goran thessen - nextgen euro conference manchester 22 june 2009

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Municipality of Kristianstad ation – in the region Skåne, south of Sweden abitants in municipality ~ 78 000 n town “Kristianstad” ~ 28 000 gest part of population lives in smaller villages and/or in e rural areas

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Göran Thessén - CEO C4Energi AB on using NGN as a backbone for future city-net services in Sweden - Manchester CBN/NextGen Euro Conference on 22 June 2009

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Page 1: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

Municipality of Kristianstad

• Location – in the region Skåne, south of Sweden• Inhabitants in municipality ~ 78 000• Main town “Kristianstad” ~ 28 000• Largest part of population lives in smaller villages and/or in more rural areas

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Kristianstad

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The C4 Energi AB group

Grids for a sustainable society

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Organization

Businessareas

Municipality of Kristianstad - holding company

100 %100 %

C4 Energi ABCEO Göran Thessén

Economy & Adm.

C4 Elnät ABCEO Göran Thessén

District HeatingElectric

distributionCityNet

Sales ~ 35 M€Profit ~ 3 M€~ 85 employees

Page 13: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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C4 Energi businesses

Super fast Internet, TV, VoIP, and other services

Distribution of Electricity - a service taken for granted

Heating and comfort based on “green” energy solutions

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Electric distributionCharacteristics:• Monopoly• 28000 customers• 560 GWh delivered el.• 100 % cables in ground• High delivery quality• Local business• Low distribution cost

(low customer price)• All customers AMR

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Power & District heating

Combined production of Heat and electric power:• ~ 70 GWh, el and 320 GWh district heat• > 2300 customers (Of which 500 stands for ~ 90 % of sales volume)

• 100 % overall efficiency• nearly 100 % renewable fuels, (wood ships)

Page 16: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Business area CityNet The optical fiber grid – the backbone for future

services

Development:

1997 - First customer – dark fiber

2005 - Start of the CityNet business (open access business model)

2007 - CityNet- as well as dark fiber customers increases rapidly

2009 - Connecting the biggest apartment owner to CityNet (~ +7 000)

Page 17: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Customers in C4 Energi CityNet

April 2009:

• in total ~ 8 200 connected to City-net• ~ 4 300 activated paying customers

• Total investments ~ 9,3 M€ including the dark fiber business.

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http://portal.stadsnat.com

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Why investing in an optical fiber infrastructure?

• Local control of infrastructure – increases competition to end customer (choice of alternatives and price level)

• C4 Energi investment includes Municipality values

• Synergies with C4 Energi infrastructure businesses• Better penetration in Municipality – improves potential in

service level • Potential of getting synergies in municipalities “holdings” and

own service needs• Open access business model - guarantee of - equal terms for

equal service• Potential of price reductions ~ 20-30 % lower price compared

to customers alternatives (e.g. TV, Internet and phone) – effect of volume and competition

Page 20: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Service providers

C4 Energi – CityNet The optical fiber grid – the backbone for future

services

SR 7

ESS 6 ESS 6

ESS 6 ESS 6

ESS 6

ESS 6ESS 6

Main grid structureMain grid structure

ESS 6

SR 7 Service router, ESS 6 Distribution routers

Page 21: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Regional Network

Broadband Service

Aggregation

Broadband Service Router

VPLS

BSA

BSA

Alcatel7450

Alcatel7750

HGW

HGW

Alcatel 6850FTTB

Alcatel 6850FTTH

HomeGateway

Service Provider #1

Service Provider

#2

Service Provider

#3Service Provider

#4

VoIP

Video

HSI

Service providers 2009:~ 5 Internet providers~ 4 IP VOIP (Phone)~ IP TV~ 1+1 analog TV~ Several VoD and other servicesDifferent customer

solutions depending on customer situation

C4 Energi – CityNet

Page 22: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Fiber network in and between cities

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Cooperation with other ground works

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Responsibility

Active part in the building (FTTB)

Kristianstad CityNetTo the estate line

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Example of Service Providers

Internet

Telefoni

Internet Telephone TV

10 Mbit/s = 20 Euro/month

Telephone = 5 – 10 Euro/month

Page 26: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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General Market Offerings

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Open ChoiceSABO = public estate owners

Tenants organization SSNf = city net professionals in Sweden

Operative cooperation to develop a new solution with “one box”

Page 28: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

Setup box open choice

Services

customer

Services

Boxes

MW+portalCA systemVoD-server

TV channels VoD

Social servicesLocal services

API

HAL

Open Choice TV

Page 29: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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TODAYAccess fiber = City Networks in

Sweden

Total fiber infrastructure:• More than 5 million km fiber• 3 195 000 households and

commercial customers are connected by fiber-LAN today

• 99,9 % of households have internet access in Sweden today and

• 98,5% of all commercial customers

Page 30: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Headendoperatör ÖstÅlcom

Headendoperatör VästVarberg

Tekniska signaltester

Tekniska plattformstester

Teknisk lösning/aktör

Kommersiell test

Skåneklustret

Kommersiell drift

Göteborg/Väst

Mälarklustret

Norrskensklustret

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Regional Fiber Network in Skåne

Connections also to smaller villages > 200 inhabitants

~ 100 km

C4 Energi

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BAS-projektet Bredband till Alla i Skåne

- investering 800 mkr

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Regional cooperation with other Citynets

Synergies:One organisation for operation & maintenance.Larger volumes & lower cost for purchase of equipment.

Marketing benefits:Service suppliers reach larger volumes of costomers thru one connecting point – decrease costs

Established Citynets

Ongoing developement

Page 34: Goran Thessen - NextGen Euro Conference  Manchester 22 June 2009

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Vision for Skåne- one entrance for all -

BAS Skånsk NätkraftTele2syd

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The business of IT & communication

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Alcatel-Lucent Manchester 2009-06-22

Tank you for your attention!

Göran ThessénCEO C4 Energi AB and C4 Elnät AB

PO box 2105291 02 Kristianstad

Sweden+46 44-7807501+ 46 733-737501

[email protected]

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Kristianstad

Nuläget stadsnätsetableringar

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Åhus

Nuläget stadsnätsetableringar

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Svartfibersträckningar BAS

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Nuvarande svartfibernät (tätort)

Totalt 28 mil fiberkabel i och utanför Kristianstads tätort.

Totalt 28 mil fiberkabel i och utanför Kristianstads tätort.