2013 Finland - Telecoms, IP Networks, Digital Media and Forecasts

Half the population now accessing 100Mb/s broadband

BuddeComm’s annual publication, Finland - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors of one of Europe’s markets. The report includes the regulator’s 2012 market data report, telcos’ financial and operating data to Q1 2013 and market developments to mid-2013.

Telecom market overview

Finland’s telecom sector revenue fell steadily from 2006 to 2009, affected by the poor domestic and regional economic climate. Since 2009 the sector has stabilised, showing slight growth tempered by the effects of competition and regulatory measures and encouraged by the slight growth in GDP which is expected to continue at about 1% into 2014. Almost half of total turnover is derived from the mobile sector, while a third is from fixed network operations. 

Finland’s unique telecom sector pits the main players DNA, Elisa and TeliaSonera against a group of regional co-operatively incumbents operating as the Finnet Group. The geographically fragmented fixed-line market has made it difficult for alternative operators to establish and run their businesses nationally. Early deregulation has resulted in one of the highest levels of internet use in Europe. The mobile sector is equally vibrant, with penetration above the EU average. In common with other European countries, Finland has also taken steps to develop a national fibre network to future-proof the country’s requirements for telecom and IP-delivered services.

Broadband market

On a national level, the government and regulator have targeted a national fibre or cable network enabling 100Mb/s connections across the country by the end of 2015. The regulator is aiming for 99% of the population to be within 2kms of a 100Mb/s connection. Public funding in fixed-networks has helped finance smaller operators. Fixed-broadband is being supplemented by mobile broadband based on LTE, which is now widely available.

Key telecom penetration parameters – 2010; 2013

(Source: BuddeComm)

Market Highlights

• The government has distributed about €9.3 million for 25 broadband projects as part of the Broadband 2015 plan, boosting availability in sparsely populated areas. State aid applications worth about €50.9 million are pending.
• The largest cabelco DNA Welho has redefined basic broadband as 50Mb/s, indicative of the high quality of networks and consumer expectations.
• Elisa’s LTE network covers more than 50 locations. Mobile broadband via LTE and DC-HSPA+ is available in around 200 locations across the country.
• In a boost to DTTV, the government planned in 2014 to allocate terrestrial TV network licences which will hat enter into force in 2017.
• The Broadband 2015 plan for more than 99% of the population to have access to a fibre or cable network connection has been made practicable by amendments to legislation regarding broadband construction aid, allowing state aid to be paid to applicants before networks have been built.
• In mid-2013 DNA hired Swiss financial services company UBS to lead the sale or listing of its shares. A number of investment houses have progressed to a second stage of the sale process.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Finland. It provides further information on:

• Market liberalisation and regulatory issues;
• The impact of the global economic crisis;
• Telecoms operators – privatisation, acquisitions, new licences;
• Mobile data market developments in coming years in light of spectrum auctions and new license awards;
• 3G developments, regulatory issues and technologies including HSPA and LTE;
• Broadband migration to an FttH architecture;
• Historical and current subscriber statistics and forecasts;
• ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.