Annual and Sustainability Report 2011 - Teracom

Media plurality requires a
long-term perspective
HR2
The Teracom Group’s customers expect well-functioning services,
provided in equally well-functioning and reliable terrestrial
networks. Regardless whether the customer is a broadcaster,
program company or end user, they should be able to demand a
long-term perspective in terms of both program selection and
technical infrastructure.
Supplier assessments
The Teracom Group has an established and
effective procedure for the assessment of
suppliers.
In 2011, Teracom Sweden evaluated
95 of its suppliers (which corresponds with
80 percent of Teracom Sweden's purchasing
volume). Of the 95 suppliers, 81 responded
and 69 were approved.
Development of the terrestrial network – a sustainability issue
As part of its customers' expectations and demands on the Group's business,
Teracom Group needs to integrate sustainability aspects into its business processes;
only then will the necessary controls be created to ensure that investments are made
in the right areas, with high demands for quality and the lowest possible impact on
the environment. The trust of the various stakeholders is the guarantee for a longterm
distribution strategy based on a well-functioning terrestrial network, which
in turn ensures secure transfer of social information as well as independant media.
Investments and reinvestments
A business based on a nationwide infrastructure must continuously invest in
new technology that enables new products and services. This technology is an
important requirement for long-term competitiveness. Investments in facilities,
transmitting networks and technology systems are a major part of the Group’s
assets, and part of this responsibility is therefore to nurture this infrastructure by
implementing a long-term reinvestment plan. Consumer boxes and other receiving
equipment also comprise an important component of the total investment that
various stakeholders make in the terrestrial networks. Because many players share
utilization of the infrastructure, the Teracom Group can achieve safe and costeffective
distribution for an infinite number of receivers.
Licensing
By design, terrestrial networks are open to a variety of content producers and
spectrum is assigned through national licensing rather than strictly commercial
principles, which guarantees freedom of expression. The Teracom Group has a
responsibility to monitor development in this area to best adapt new investments
and reinvestments to the conditions that licensing creates. For the past few years,
the Teracom Group has also actively participated in BNE, a European organization
that aims to provide the terrestrial networks with the right competitive conditions
in relation to other means of distribution.
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