“At the end of Q3 2018 the Com Hem Segment had expanded its footprint by 40 percent since before the SDU expansion and reached 800,000 addressable households in the SDU market”
Our multi dwelling unit footprint
In our vertical footprint we have contracts with the landlords to provide a basic TV service to all households in a multi dwelling unit (MDU) which then allows us to sell additional services directly to the consumer. In the open LAN footprint we access the households through an agreement with the communication operator (in some cases iTUX) who runs the network and has a contract with the landlord and network owner.
We currently have contracts with more than 20,000 landlords in Sweden. Com Hem has a leading position in the MDU segment across all major cities in Sweden. As a full service provider, we offer landlords and tenants hassle-free services, including installation, service and support, and for the FibreCoax households, we typically offer the tenants a basic TV service of 8-17 channels. The fee for the basic TV packages is generally included in the rent and therefore often perceived as free by the tenants.
There are three main categories of landlords;
- Tenant associations: Tenants owning a share in the tenant associations making decisions by votes (represents about 50% of landlords)
- Public: Municipalities and social housing with politically appointed boards (represents about 25% of landlords)
- Private: Large commercial and small private landlords (represents about 25% of landlords)
Our single dwelling unit footprint
In 2016 we decided to enter the single dwelling unit (SDU) market. Households in our SDU footprint are split between unbundled fibre (Skanova) and open LANs. In households connected through Skanova’s network we have a contract with the consumer and rent the access from Skanova at a regulated monthly fee per subscriber. In the open LAN footprint we access the households through an agreement with the communication operator, similar to the MDU business. Unlike Skanova’s network, the open LANs are not regulated. This means that the monthly fee we pay to the communications operator in an open LAN is at a market rate which is generally higher than the regulated fee we pay to Skanova.
Footprint expansion programme, (number of addressable households)
iTUX our communication operator
iTUX is the Group’s communication operator, and services some 160,000 households. Customers connected to the networks operated by iTUX can choose from several different service providers, including Com Hem and Boxer. iTUX operates in both the MDU and SDU markets.
In Sweden there are a total of 2.6 million MDU households and 2.1 million SDU households. As of Q3 2018 the Com Hem Group footprint included some 2.0 million MDU households and 970,000 SDU households. Note that not all SDU households have been overbuilt by fibre and some are too remote to ever be overbuilt.