2012 Finland - Telecoms, IP Networks, Digital Media and Forecasts

Last updated: 27 Aug 2012 Update History

Report Status: Archived

Report Pages: 93

Analyst: Henry Lancaster

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Summary
Table Of Contents

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:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major Players, Revenues, Subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile Voice and Data Markets;
Broadband (FttH, DSL, cable TV, wireless);
Convergence and Digital Media;
3G subscriber and mobile ARPU forecasts to 2015;
Broadband market forecasts for selective years to 2020.

Key developments:

Government begins licensing round to utilise capacity in the A, G, VHF A and VHF B multiplexes; DNA upgrades broadband network to 200Mb/s, launches pay-TV service; TV licence fee to be replaced with new tax from 2013; mobile subscriber base grows 7% in 2011; MNP conditions revised; TeliaSonera’s LTE network recording 48Mb/s; Russia and Finland negotiate roaming agreements; ITU releases 700MHz band for mobile broadband; Finland free to use 800MHz for LTE following spectrum agreement with Russia; 800MHz auction to be brought forward to early 2013; MTR reduction agreed to late 2014; DNA expands HSPA+/LTE to 50% of the population, LTE now available to more than one million Finns; Elisa launches LTE in Espoo; regulator’s 2011 market data update and reports to mid-2012; telco financial and operating data to June 2012; market developments to mid-2012.

Companies covered in this report include:

TeliaSonera, Finnet Group, DNA, Elisa, TDC Finland, Tele2, Digita, Helsinki Television, Sonera Cable, Canal+, Yleisradio Oy.

Researcher:- Henry Lancaster
Current publication date:- August 2012 (11th Edition)

Executive Summary

Finland’s 800MHz auction promises national LTE coverage by 2019

BuddeComm’s annual report, Finland - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the Finnish telecoms and digital media markets. The report includes the regulator’s 2011 market data update and reports to mid-2012; telco financial and operating data to June 2012; market developments to mid-2012.

Telecom market overview

Although Finland’s GDP dropped sharply in 2009 it recovered well in the two subsequent years though is expected to show growth of only 0.3% for 2012. These economic vagaries have been mirrored in the telecoms market, where revenue fell steadily from 2006 to 2009 before stabilising. In coming years, revenue growth is expected to be tempered by the effects of competition and regulatory measures. The largest share of turnover is from the mobile sector, while only a third is derived from fixed network operations. Turnover from fixed-line and mobile telephony has fallen steadily in line with lower access and call charges, though this decline in 2011 was offset by the 10% growth in revenue from TV and radio services.

Mobile market

The mobile sector is very significant in Finland, accounting for the largest proportion of sector revenue and accounting for 85% of voice traffic. High penetration rates have led MNOs to focus on mobile data services. These are set to develop swiftly from 2013: the availability of spectrum in the 2.6GHz band will be supplemented by spectrum in the 800MHz band. The regulator has determined that one of the licensees must provide 99% population coverage, while the others are expected to reach 97%. LTE services will become a dominant feature of the mobile landscape, supported by operators’ existing experiences in their Scandinavian markets.

Broadband market

Finland has been one of the more progressive countries for developing a fibre-based NBN infrastructure. The government has targeted 100Mb/s connections nationally by 2015. About 94% of premises will be within reach of the network, with the remainder to be provisioned with LTE. Government financing is being met from central funds as also the proceeds of spectrum auctions and a tax on operators. Self-build networks in rural areas are common, dramatically reducing the cost of engineering works and so speeding up network rollout. Collectively, efforts from the government, regulator, telcos and consumers will keep Finland at the forefront of new fibre infrastructure and place the country as an example for many others to follow.

Key telecom parameters – 2010; 2013

Sector	2010	2013
Subscribers by sector (million):
Fixed-line telephony	1.18	0.95
Fixed broadband	1.56	1.69
Mobile (SIM)	8.39	10.13
Mobile broadband	1.63	3.12
Penetration by sector:
Fixed-line telephony	25%	23%
Fixed broadband	28%	35%
Mobile (SIM)	141%	151%

(Source: BuddeComm)

Market Highlights

The largest cableco DNA has delivered wide-reaching 200Mb/s services and has trialled a 1.5Gb/s service, the world’s fastest thus far.
Long term spectrum licences in the 2.5-2.69GHz band has encouraged operators to invest in network upgrades. DNA offers a combination of HSPA+ and LTE, expected to reach two million Finns by the end of 2012.
The frequency coordination agreement reached between Finland and Russia in 2011 enables Finland to use the 800MHz band for LTE, fast-tracking mobile broadband to rural areas.
FttH has been stimulated by government intervention providing public funding for rural projects, which now benefit about 5% of the population.
Initially slow to develop large-scale fibre projects, the major telcos have recently stepped up their investment though concentrating on commercially viable areas, with LTE expected to fill gaps in rural areas
The auction of spectrum in the 800MHz band, expected in early 2013, will enable LTE to be available to 99% of the population by 2019.

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.

1. Key Statistics
2. Telecommunications Market
- 2.1 Overview of Finland’s telecom market
3. Regulatory Environment
- 3.1 History
  - 3.1.1 New Regulatory Framework (NRF)
  - 3.1.2 Revised NFR
- 3.2 Regulatory authorities
- 3.3 Telecom sector liberalisation in Finland
  - 3.3.1 Privatisation of Telecom Finland
  - 3.3.2 Interconnect
  - 3.3.3 Access
  - 3.3.4 Number portability (NP)
  - 3.3.5 Carrier preselection
4. Fixed Network Operators
- 4.1 Overview and statistics
- 4.2 TeliaSonera
- 4.3 Finnet Group
- 4.4 DNA
- 4.5 Elisa Corporation
- 4.6 TDC Finland
- 4.7 Tele2
5. Telecommunications Infrastructure
- 5.1 National telecom network
- 5.2 Next Generation Network
- 5.3 International infrastructure
6. Broadband Market
- 6.1 Overview
  - 6.1.1 National Broadband Strategy
  - 6.1.2 Universal Service
  - 6.1.3 Broadband statistics
- 6.2 Cable modems
  - 6.2.1 DNA
- 6.3 Asymmetrical Digital Subscriber Line (ADSL)
  - 6.3.1 Very High-Speed Digital Subscriber Line (VDSL)
- 6.4 Fibre-to-the-Home (FttH) networks
- 6.5 Broadband Powerline (BPL)
- 6.6 Mobile broadband
- 6.7 Wireless broadband
  - 6.7.1 Wireless LANS
  - 6.7.2 WiMAX/WiFi
  - 6.7.3 Fixed Wireless Access (FWA)
7. Digital Media
- 7.1 Digital media Overview
  - 7.1.1 Key general trends
  - 7.1.2 Business models – bundled services
- 7.2 Digital TV
  - 7.2.1 Overview
  - 7.2.2 National licences
  - 7.2.3 Regional licences
  - 7.2.4 Digital dividend
  - 7.2.5 Broadband (IPTV)
  - 7.2.6 Cable TV
  - 7.2.7 Satellite-based digital pay-TV developments
  - 7.2.8 Free-to-Air (FTA) TV
  - 7.2.9 Digital Terrestrial TV (DTTV)
  - 7.2.10 VoIP
  - 7.2.11 Interactive TV (iTV)
8. Mobile Communications
- 8.1 Overview of Finland’s mobile market
  - 8.1.1 Mobile statistics
  - 8.1.2 Operator market shares
- 8.2 Regulatory issues
  - 8.2.1 Spectrum regulations and spectrum auctions
  - 8.2.2 Roaming
  - 8.2.3 Mobile Number Portability (MNP)
  - 8.2.4 Mobile termination rates (MTRs)
- 8.3 Mobile technologies
  - 8.3.1 Digital
  - 8.3.2 Third Generation (3G) mobile
- 8.4 Major mobile operators
  - 8.4.1 TeliaSonera
  - 8.4.2 DNA
  - 8.4.3 Elisa
  - 8.4.4 Mobile Virtual Network Operators (MVNOs)
- 8.5 Mobile voice services
  - 8.5.1 Prepaid cards
- 8.6 Mobile Messaging
  - 8.6.1 Short Message Service (SMS)
  - 8.6.2 Multimedia Messaging Service (MMS)
- 8.7 Mobile data services
  - 8.7.1 Overview
  - 8.7.2 General Packet Radio Service (GPRS)
  - 8.7.3 High-Speed Packet Access (HSPA)
  - 8.7.4 High-Speed Uplink Packet Access (HSUPA)
  - 8.7.5 Enhanced Data for GSM Evolution (EDGE)
  - 8.7.6 Long-term Evolution (LTE)
  - 8.7.7 Orthogonal Frequency Division Multiplex Access (OFDMA)
  - 8.7.8 Unlicensed Mobile Access (UMA)
- 8.8 Mobile content and applications
  - 8.8.1 Location based services
  - 8.8.2 Mobile TV
  - 8.8.3 M2M
9. Forecasts
- 9.1 Forecasts – Fixed-line broadband subscribers – 2009 - 2012; 2020
  - 9.1.1 Scenario 1 – higher broadband subscriber growth
  - 9.1.2 Scenario 2 – lower broadband subscriber growth
- 9.2 Forecasts - Mobile
  - 9.2.1 Forecasts – Mobile ARPU – 2009 - 2010; 2015
  - 9.2.2 Forecasts – UMTS subscribers – 2009 - 2010; 2015
10. Glossary of Abbreviations

Table 1 – Country statistics – 2012 (e)
Table 2 – Telecom revenue and investment statistics – 2011
Table 3 – Telephone network statistics – 2012 (e)
Table 4 – Internet user statistics – 2011
Table 5 – Broadband statistics – 2012 (e)
Table 6 – Mobile statistics – 2012 (e)
Table 7 – National telecommunications authorities
Table 8 – Telecom revenue – 2003 – 2012
Table 9 – Telecom revenue, fixed-line and mobile – 2006 - 2012
Table 10 – Price differential for data and voice services – 2007 - 2009
Table 11 – Household penetration rate of select telecom services – 2009 - 2011
Table 12 – Telecom investment by sector – 2009 - 2012
Table 13 – Telco operator assets and network investments – 2003 - 2008
Table 14 – Share of consumer telecom spend by sector – 2007 - 2011
Table 15 – TeliaSonera LLU accesses – 2006 - 2012
Table 16 – Cumulative fixed numbers ported – 2006 - 2009
Table 17 – Fixed-line operators’ market share – 2005 - 2011
Table 18 – Fixed-line connections and traffic in minutes – 2006 - 2014
Table 19 – TeliaSonera (Finland) mobile and broadband revenue – 2006 - 2012
Table 20 – TeliaSonera (Finland) subscribers by sector – 2002 - 2012
Table 21 – DNA financial data – 2008 - 2012
Table 22 – DNA revenue (consumer and business) – 2008 - 2012
Table 23 – DNA subscribers by sector – 2007 - 2012
Table 24 – Elisa fixed network subscribers by sector – 2004 - 2012
Table 25 – Elisa revenue by sector – 2004 - 2012
Table 26 – Elisa Group financial data – 2008 - 2012
Table 27 – TDC Finland financial data – 2007 - 2012
Table 28 – Fixed lines in service and teledensity – 2000 - 2012
Table 29 – Broadband market share by operator – 2006 - 2011
Table 30 – Fixed-line broadband speed by rate (market share) – 2007 - 2011
Table 31 – Broadband market share by sector – 2008 – 2011
Table 32 – Internet users and penetration rate – 1995 - 2013
Table 33 – Broadband subscribers by platform; cable, DSL – 2000 - 2012
Table 34 – Housing corporation broadband subscribers (regulator data) – 2006 - 2013
Table 35 – Broadband penetration by technology – 2004 - 2011
Table 36 – Proportion of broadband connections by data rate (%) – 2011
Table 37 – Broadband household penetration by type of connection – 2010 - 2011
Table 38 – Proportion of broadband connections by data rate (%) – 2011
Table 39 – Demographic profile of broadband penetration by type – 2011
Table 40 – Broadband subscriber market share by platform – 2011
Table 41 – Broadband subscriber market share by operator – 2011
Table 42 – DNA broadband subscribers – 2007 - 2012
Table 43 – Elisa broadband subscribers – 2007 - 2012
Table 44 – TeliaSonera internet and broadband subscribers – 2002 - 2012
Table 45 – TeliaSonera broadband ARPU – 2006 - 2012
Table 46 – Forecast broadband delivery by technology – 2015
Table 47 – Fibre broadband subscribers – 2009 - 2013
Table 48 –BPL subscribers – 2004 - 2011
Table 49 – Mobile broadband subscribers – 2007 - 2013
Table 50 – Demographic profile of mobile broadband penetration – 2010 - 2012
Table 51 – WLAN subscribers – 2004 - 2013
Table 52 – Digital TV subscribers and penetration rate – 2003 - 2012
Table 53 – Digital TV reception by technology – 2008 - 2011
Table 54 – TV and radio revenue – 2003 – 2012
Table 55 – Cable TV subscribers and penetration – 1995 - 2012
Table 56 – Sonera Cable TV subscribers – 2008 - 2012
Table 57 – Elisa cable TV subscribers – 2005 - 2011
Table 58 – DNA cable TV subscribers – 2005 - 2012
Table 59 – Satellite TV subscribers and penetration rate – 1995 - 2012
Table 60 – Mobile revenue as proportion of total telecom revenue – 1998 - 2012
Table 61 – Mobile network revenue – 2006 - 2013
Table 62 – Mobile operators, subscribers and annual change – Jun 2012
Table 63 – Mobile subscribers and penetration rate – 1995; 1997; 1999 - 2013
Table 64 – Calls and call minutes originating in mobile networks – 2006 - 2013
Table 65 – Mobile operators – monthly ARPU – 2004 - 2012
Table 66 – Mobile market share by operator (regulator data) – 2006 - 2011
Table 67 – European roaming charges – 2007 - 2011
Table 68 – European roaming call charges (€ cents) – 2012 - 2014
Table 69 – European SMS roaming charges (€ cents) – 2012 - 2014
Table 70 – European data roaming charges (€ cents) – 2012 - 2014
Table 71 – Annual mobile numbers ported – 2003 - 2011
Table 72 – MTRs by operator – 2006 - 2012
Table 73 – TeliaSonera Finland mobile financial data – 2005 - 2012
Table 74 – TeliaSonera Finland blended ARPU – 2003 - 2012
Table 75 – TeliaSonera Finland mobile subscribers – 2002 - 2012
Table 76 – DNA financial data – 2008 - 2012
Table 77 – DNA annualised monthly ARPU – 2007 - 2012
Table 78 – DNA mobile subscribers – 2007 - 2012
Table 79 – Elisa mobile financial data – 2004 - 2012
Table 80 – Elisa mobile subscribers in Finland and Estonia – 2004 - 2012
Table 81 – Elisa mobile operating statistics – 2008 - 2012
Table 82 – Elisa annualised ARPU – 2008 - 2012
Table 83 – SMS messages sent and annual change – 1999 - 2013
Table 84 – MMS messages sent and annual change – 2003 - 2013
Table 85 – Mobile data sent – 2006 - 2014
Table 86 – Proportion of mobile subscribers by data rate – 2011
Table 87 – Annual growth in mobile data sent – 2009 - 2014
Table 88 – Forecast fixed-line broadband subscribers – higher market growth scenario 2010 - 2012; 2020
Table 89 – Forecast fixed-line broadband penetration – higher market growth scenario – 2010 - 2012; 2020
Table 90 – Forecast fixed-line broadband subscribers – lower market growth scenario 2010 - 2012; 2020
Table 91 – Forecast fixed-line broadband penetration – lower market growth scenario 2010 - 2012; 2020
Table 92 – Forecast mobile ARPU - 2005 - 2010; 2015
Table 93 – Forecast UMTS subscribers – 2006 - 2010; 2015

Chart 1 – Telecom revenue and annual change – 2003 - 2012
Chart 2 – Telecom revenue, fixed-line and mobile – 2006 - 2012
Chart 3 – Fixed-line operators’ market share – 2005 - 2011
Chart 4 – Fixed-line connections and traffic in minutes – 2006 - 2014
Chart 5 – TeliaSonera (Finland) mobile and broadband revenue – 2006 - 2012
Chart 6 – TeliaSonera (Finland) subscribers by sector – 2002 - 2012
Chart 7 – DNA financial data – 2008 - 2012
Chart 8 – DNA revenue (consumer and business) – 2008 – 2012
Chart 9 – DNA subscribers by sector – 2007 – 2012
Chart 10 – Elisa cable TV and broadband subscribers – 2004 - 2012
Chart 11 – Elisa revenue by sector – 2004 - 2012
Chart 12 – Elisa Group financial data – 2008 - 2012
Chart 13 – TDC Finland financial data – 2007 - 2012
Chart 14 – Broadband market share by operator – 2006 - 2011
Chart 15 – Broadband market share by sector – 2008 - 2011
Chart 16 – Internet users and penetration rate – 2003 - 2013
Chart 17 – Broadband subscribers and penetration rate – cable, DSL – 2002 - 2013
Chart 18 – Cable TV subscribers and penetration – 2002 - 2012
Chart 19 – Satellite TV subscribers and penetration rate – 2003 - 2012
Chart 20 – Mobile subscribers and penetration rate – 2003 - 2013
Chart 21 – Calls and call minutes originating in mobile networks – 2006 - 2013
Chart 22 – Mobile market share by operator (regulator data) – 2006 - 2011
Chart 23 – MTRs by operator – 2006 - 2012
Chart 24 – TeliaSonera Finland mobile financial data – 2005 - 2012
Chart 25 – DNA financial data – 2008 - 2012
Chart 26 – DNA mobile subscribers – 2007 - 2012
Chart 27 – Elisa mobile financial data – 2004 - 2012
Chart 28 – Elisa mobile subscribers in Finland and Estonia – 2004 - 2012
Chart 29 – Elisa annualised ARPU – 2008 – 2012
Chart 30 – Forecast broadband subscribers – higher market growth scenario – 2010 - 2012; 2020
Chart 31 – Forecast fixed-line broadband subscribers – lower market growth scenario 2010 - 2012; 2020

Exhibit 1 – EU –NRF
Exhibit 2 – Access and the local loop
Exhibit 3 – Overview of digital media
Exhibit 4 – 2.6GHz auction results – 2009
Exhibit 5 – Sample 3G infrastructure suppliers in Finland
Exhibit 6 – Premium SMS market overview – 2005

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