2009 Finland - Telecoms, IP Networks, Digital Media and Forecasts

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 markets in Ireland.

Finland’s telecom market is dominated by four providers: the Finnet Group, TeliaSonera, Elisa and DNA, founded in 2007 by six of the largest operators which broke away from the Finnet Group and which now controls Finnet’s mobile network business. The country has traditionally been at the forefront of telecom technologies and innovation, particularly in the mobile and broadband sectors.

Finland was one of the first EU countries to develop a national fibre network to future-proof the country’s requirements for telecom and IP-delivered services. Its aim to provide a 100Mb/s connection to all households and businesses by 2015, remains among the most ambitious in Europe.

Overall telecom market revenue has fallen steadily since 2007. Little respite is anticipated for operators in the fixed-line and broadcasting sectors in 2010. However, nearly half of all turnover is from the resilient mobile sector despite it having been affected most from regulatory measures and stiff competition. Turnover from fixed-line telephony will continue to fall in coming years in line with lower access and call charges, consumer migration to VoIP and the substitution of fixed-line for mobile telephony.

Nevertheless, there is considerable scope for further telecom development as the country moves towards a resilient All-IP future. The bulk of tangible investments in telecom networks has been in developing the mobile sector, which has been buttressed by technologies including LTE and HSPA+ as well as the allocation of sub-1GHz spectrum for 3G use.

Finland – key telecom parameters – 2008; 2010

(Source: BuddeComm)

Key highlights

·         The mobile sector share in overall revenue has been steady at about 48% in recent years. This share is unlikely to drop in future given the considerable investment in network upgrades. All three MNOs reported steady revenue in 2009, despite regulated measures affecting roaming and interconnection tariffs, as well as competition from number of MVNOs.

·         The mobile and mobile broadband sectors are excellently placed given Finland’s pioneering allocation of 450MHz spectrum for digital mobile services. All three MNOs have also used the 900MHz band to build out their 3G networks.

·         The government’s national Broadband Action Plan has set out one of Europe’s most ambitious fibre deployments, aiming to provide 100Mb/s to all citizens by 2015, part funded by public funds and part through an innovative tax on operator revenues. The success of this enterprise will in coming years provide a lesson for other European markets struggling with less ambitious policies.

·         Mobile broadband subscribers using operators’ HSPA networks have been the largest contributor to overall broadband growth in recent years. Excellent network infrastructure will be supplemented by LTE deployments during 2010 on the back of November 2009 launches by TeliaSonera in neighbouring Norway and Sweden. By 2011 about 30% of all mobile subscribers are expected to be on HSPA networks.

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