Last updated: 5 Jan 2011 Update History
Report Status: Archived
Report Pages: 87
Analyst: Henry Lancaster
Publication Overview
This report provides a comprehensive overview of trends and developments in Finland’s telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:
Researcher:- Henry Lancaster
Current publication date:- January 2011 (9th Edition)
Next publication date:- December 2011
Executive Summary
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 Finland.
Turnover in Finland’s telco sector fell in both 2007 and 2008 as the impact of the financial crisis affected consumers and telcos alike. Recovery was seen in 2009, which should continue steadily during the next few years: the key operators are committed to increasing investments in mobile and fibre networks, so allowing consumers to make greater use of IP-delivered content. More than half of total turnover is from the mobile sector, the remainder from fixed network operations, where revenue continues to fall in line with lower access and call charges, and lower use by consumers having switched to mobile-only and VoIP solutions.
Finland’s broadband penetration is far ahead of the EU average. The market is dominated by the main telcos TeliaSonera, Elisa and DNA. Wireless networks are provided nationally via MNOs and Digita Oy’s network (based on 450MHz spectrum), as well as regional WiMAX and WLAN networks.
Finland’s regulator closely monitors the country’s broadband development, comparing strategies with those of its neighbours Sweden, Denmark and Norway. This is partly to encourage regulatory and competition measures where they have proved successful elsewhere. The structure and prices of regional broadband markets also vary among the Nordic countries, with Sweden and Finland having the most favourable end-user prices regardless of connection speed.
The government’s Broadband Action Plan aims to deliver fibre-based broadband for all citizens by 2015. The Plan would deliver 100Mb/s services nationally, a significant improvement on the minimum 1Mb/s envisaged in 2004. To finance the State contribution the government auctioned frequencies in the 2.5-2.69GHz band at the end of 2009, with some of the proceeds going towards network rollout and the shortfall being met by a tax on telcos based on the number of their broadband subscriptions.
The number of fixed-line broadband subscriptions is likely to remain stagnant to 2012 as a number of consumers switch to mobile-only solutions. However, growth will steadily resume thereafter as fibre-based networks, supplemented by 100Mb/s or 200Mb/s DOCSIS3.0 offers from cablecos, are made more widely available.
The mobile sector has been equally successful, with penetration again above the EU average. Finland has one of the most advanced mobile markets in the world and has been an early adopter of emerging technologies: the country launched the world’s first commercial GSM network, it was the first in Europe to award 3G licences, and it has trailed only Norway and Sweden in launching commercial LTE services. The country has also been at the forefront in utilising sub-GHz spectrum for 3G.
There are around ten major mobile network operators or service operators in Finland, though 98% of the market (by subscribers) is controlled by a triopoly of the established players TeliaSonera, Elisa and DNA. These MNOs host several resellers and MVNOs, while Ålands Mobiltelefon operates a network in the Ålands area.
There are several mobile service operators which also provide mobile broadband services, as well as players offering mobile broadband together with fixed broadband services, but without mobile voice services. Market competition as well as regulatory measures have gradually reduced the price of mobile calls and services: indeed mobile call charges in Finland are the cheapest in Europe, while Finnish mobile broadband subscriptions are also among the least expensive.
Finland became the first country in the world to launch DTTV services based on the MHP, in 2001. The switchover from analogue to digital broadcasting was completed in 2007 – digital TV is now broadcasted in five national multiplexers with a varying coverage and channel offering. In 2009 DNA was contracted to build a network to transmit HDTV nationally, and to operate the two associated multiplexes. Signals are expected to reach 60% of the population by the end of 2011.
Key telecom parameters – 2009 – 2011
Sector |
2009 |
2011 (e) |
Broadband: |
||
Fixed broadband subscribers (million) |
1.45 |
1.45 |
Fixed broadband penetration rate |
38% |
45% |
Mobile broadband subscribers (thousand) |
410 |
660 |
Subscribers to telecoms services: |
||
Fixed-line telephony (thousand) |
908 |
1,850 |
Mobile phone (million) |
7.7 |
8.9 |
Mobile SIM penetration (population) |
139% |
144% |
(Source: BuddeComm)
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:
Data in this report is the latest available at the time of preparation and may not be for the current year.
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