Fast Broadband Project Helps Build 25,000 Kilometres of Fibre Networks
The Finnish Transport and Communications Agency (Traficom) has granted a total of 76 million euros in state aid to help build fast broadband networks, with 48 aid recipients and some 190 broadband projects funded. All supported networks are fibre-based, enabling reliable broadband connections with symmetrical transfer rates and speeds of 100 megabits per second.
By the end of 2019, state aid granted in the context of the Fast Broadband project had helped build 25,000 kilometres of fibre networks. This figure is expected to increase, as about 50 projects are still ongoing.
The Fast Broadband project has made state aid available to help cover the costs of building fast broadband networks since 2011. The purpose of granting the aid is to ensure that fast broadband networks are built in areas where their commercial availability is unlikely. Applications for aid from the current scheme were open until the end of 2018, with the final aid decisions made in 2019.
2019 was a year for active construction and subscription sales
2019 saw a marked increase on the previous year in subscription sales as well as kilometres of networks built. Some of this growth can be attributed to the beneficial impact of the legislative changes that took effect in July 2017. The aid scheme had previously been exclusive to areas whose population density was such that a maximum of 5,4% of the population resided in equally or more sparsely populated areas. Eligibility criteria were also modified, decreasing the length of ineligible local loops from 2 kilometres to 100 metres. Furthermore, it is possible that the approaching deadline at the end of 2018 prompted applicants to action before the scheme expired, with 27 new applications submitted in the last few months of availability.
Some 3,200 km of networks were built in 2019, while the equivalent figure for the previous year was 1,400 km. The Fast Broadband project saw its most active years following its launch in 2013 and 2014, when up to 6,000 km of networks were built per year. The lowest number, 700 km, came in 2017, as aid applicants waited for the legislative changes expected to enter into force that year.
Constructors of broadband networks receiving state aid sold almost 14,500 new fibre subscriptions in 2019, up from only 6,500 the previous year. The total number of subscriptions sold in the context of the Fast Broadband project currently stands at about 53,200. As subscription sales begin while the network is still under construction, all sold subscriptions are not yet in use. Of all sold subscriptions about 40,000 were covered by networks on which construction was completed by the end of the year, with some 32,500 ready for use.
The above statistics are based on the Fast Broadband project annual survey of 2019. The survey was sent to all the companies that received aid from the scheme.
Preparation work ongoing on an extension of the aid scheme
The Ministry of Transport and Communications is currently preparing an extension of the state aid scheme for broadband construction. The aim is to reopen aid applications in early 2021. Eligibility for the aid would be based on the lack of commercial availability of fast broadband before 2025.
The extension of the aid scheme is among the objectives set out in the Government Programme. The General Government Fiscal Plan earmarks five million euros for the aid scheme in 2021.
For more information on the progress of the preparatory work, see the Government’s website (External link) (in Finnish).
Enquiries
Aino Äijälä, Legal Counsel, tel. +358 29 534 5220, aino.aijala(at)traficom.fi (on leave from 1 to 9 April 2020)
Essi Hytti, Communications Market Specialist, tel. +358 29 539 0535, essi.hytti(at)traficom.fi