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

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Last updated: 27 Aug 2012 Update History

Report Status: Archived

Report Pages: 93

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.

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