From National Broadband Plans towards Broadband Ubiquity – Finland’s Experiences Speeding up NGN ubiquity: a pillar for digital growth Athens, 13-14 February.

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From National Broadband Plans towards Broadband Ubiquity – Finland’s Experiences Speeding up NGN ubiquity: a pillar for digital growth Athens, February 2014 Olli-Pekka Rantala, Director of Communications Market Unit

www.lvm.fi 2 Mobile broadband is crucial - More spectrum is needed for mobile communications networks  Of all EU countries, Finland has the highest mobile broadband penetration.  The geographical coverage of mobile broadband connections provided through the market is improving all the time. The Finnish Government is making efforts to promote mobile phone reception by making new frequency bands available to telecom operators.

www.lvm.fi Penetration rate Source: European Commission 3

www.lvm.fi Mobile broadband is crucial - More spectrum is needed for mobile communications networks  The 800 MHz frequency band is well-suited for the expansion of broadband coverage, particularly in sparsely-populated areas.  In Finland the 800 MHz Frequency band was allocated to high- speed mobile communications networks in In 2013 operating licenses for the mobile broadband network were granted by means of a spectrum auction.  The mobile communications network must be constructed to cover 95 per cent of the population in mainland Finland within three years of the start of the license period and 97 or 99 per cent of the population in mainland Finland within five years of the start of the license period.  Telecom operators have announced that network cover is going to be 80 per cent by the end of

www.lvm.fi Mobile broadband is crucial - More spectrum is needed for mobile communications networks  In February 2012 WRC-12 decided that the 700 MHz band, currently used by television operators, should be made available to wireless broadband after  In September 2012 the Finnish government decided that the 700 MHz frequency band will be allocated to wireless broadband in

www.lvm.fi High-speed fixed broadband supplements mobile connections  The Government Program of Finland's present Government includes a target according to which "the provision and use of high-speed broad-band connections will be promoted to make Finland the leading European country in terms of broadband access". As far as mobile broadband is concerned, Finland already is the top European country, but in the uptake of superfast fixed connections, Finland has fallen behind the leaders.  The aim is that by the end of 2015 practically all (more than 99 percent of population) permanent residences and permanent offices of business or public administration bodies will be no more than within two kilometres’ reach to an optical fibre or cable network permitting 100 Mbps connections.  In built-up areas telecom operators are expected to build high-speed connections on market terms. This will achieve a population coverage of around 95%. Extending the coverage to 99% will require the use of public subsidies in funding high-speed connections to around 130,000 households in non-built-up areas. 6

www.lvm.fi High-speed fixed broadband supplements mobile connections  In subsidized rural areas’ 100 Mbps projects –Telecom operator pays at least one third –Public aid – two thirds – in rural areas will be provided by the state, municipalities and the EU.  State budget 66 million euros  EU 25 million euros  Municipalities 41 million euros  Some 200 projects are under implementation 7

www.lvm.fi High-speed fixed broadband supplements mobile connections  High-speed broadband development program was completed in the end of 2012 and the measures listed in it are under implementation. The measures include, for instance, utilising new and cost-efficient practices for optical fibre-laying and promoting a joint and forward-looking construction of society’s basic functions in collaboration with cities, towns and municipalities. 8

www.lvm.fi 1 Mbps universal service  A reasonably priced 1 Mbps broadband connection was made everyone’s basic right in Finland as of July 1st Mbps is fast enough to allow use of basic services of internet.  Telecom operators defined as universal service providers have had to provide every permanent residence and business office with access to a reasonably priced and high-quality connection with a downstream rate of at least 1 Mbps.  Dynamic concept: The possibility and need of bringing the speed for the universal broadband service up to ten megabits per second is to be studied. 9

www.lvm.fi 10 In the broadband market the supply is much bigger than the demand Households % An estimation of the broadband supply and demand on the 31 Dec % 32 % 44 % 5 % 13 % Fixed + mobile supply Fixed demad Source: supply – operators / use - Ficora

www.lvm.fi 11 Digital content and services bring the real value to the network connections  Finland's future is in digital services  G-I-D-E stands for Growth, Innovation, Digital Services and Evolution  Its aim is to promote the growth of digital services by increasing public-private cooperation  To draw up a roadmap for the digital economy in which the challenges of society have been converted into opportunities with ICT  Strategic partners, researchers, entrepreneurs and young people are called to join in