Digital Single Market
Digital Economy & Society

Getting the Finnish Broadband Strategy up to date


--- Posted by Kristiina Pietikainen, Policy Officer DG INFSO

Almost  a hundred people –members of the parliament, industry, regions, municipalities and cooperatives lead by Minister of Communications, Krista Kiuru, – gathered together on 11th October in Helsinki to review the ambitious Finnish BB-strategy.

The half a day seminar focused on lessons learned and experienced gathered so far from the ongoing  Broadband projects. The points raised were accurate and constructive and deserve serious consideration not only when updating the Finnish strategy but also in the framework of  the European BB policy. There is a strong spirit pushing the broadband forward in Finland. But no doubt there are also problems.

Neither in Finland nor elsewhere has the enthusiasm of the operators to participate to the rural Broadband projects been very great. Therefore minister Kiuru in her opening speech emphasised strongly the responsibility of the operators to actively contribute to the rural broadband deployment. She stated that the current attitude of the operators is simply not acceptable and pointed out that the state has already actively supported the operator's businesses; for instance, by allocating them valuable spectrum. So it is now time to give some favours back.As for lessons learned from the Broadband projects in general in Finland at least the following should be noted:

  • The budget, insufficient in general,  is also unevenly spent. In areas where there are ongoing and starting projects more money is needed. On the areas, where no projects have started, money allocated stands idle. Therefore the question is: should the allocation of money be renewed so that instead of regional quotas the allocation could be based on the number of projects started or starting.
  • There is clearly competition between fixed and wireless technologies. Where wireless is actively offered the demand of fiber is low – too low to dig.
  •  There is a clear 2000 € "pain-threshold" to how much people are willing to invest themselves (in Finland the state subsidies the provision of fiber max. 2 km from home the last mile being paid by everyone's own expenses)
  • The Brodband projects should be driven by real customer demand and the service offer should back up the demand of connections. No services – no demand. No demand – no offers.
  • A wider approach which takes also into account the skills and capabilities of all population groups is needed. Awareness raising, marketing and meeting the people is important, since providing BB to rural areas is a grass-root activity.
  • Less bureaucracy and more speed are necessary in all phases of the projects.  
So, the seminar was a kick-off to the revision of the Finnish Broadband strategy. From the European perspective it gives an interesting example to countries with similar circumstances. But of course none of the EU 27 countries are exactly the same. Therefore common denominators are needed. These are at least light bureaucracy, clearer guidelines, flexible financial instruments and back-up in establishing e-services.

Editor Connect's picture
Published in DSM blog


's picture
Its the same story all over the world where there is already a phone network in place. The operators won't move to fibre when they can still milk the assets of the obsolete copper, leaving many out in the cold slow lane of dial up. The only solution is rural fibre networks, bringing connection to those who have very little, and building new networks which will provide competition to the incumbents, forcing them to up their game or lose customers. Every country should support the communities, companies or groups building these networks, wherever they may be. The worst thing any country can do is what 'digital britain' is doing - pouring public funding into the con known as 'superfast' - its obsolete technology using cabinets to extend the range of the exchanges and will only help those near the cabinets. The rural areas are getting fobbed off with subsidised satellites with high data charges and slow speeds and are very expensive to run. I wish the EU would help the rural people and spend some time teaching the laws of physics to politicians and funders. A change in policy to support rural communities with planning, taxation and loans would go a long way to enabling them to help themselves. B4RN is doing it for a small area, but the areas of limited connectivity are enormous. It may only be a third of the population but its often 90% of the land mass. chris
Shane Paul's picture

Many broadband companies are hesitant to invest in rural broadband deployment and same thing is happening in Finland as well. Its a good effort by Finnish government to encourage BB operators to extend their services in rural areas as it will contribute to country's overall economic development. Thanks writing an operations manual