Traficom has granted EUR 15 million for building optical fibre networks – South Savo and Pirkanmaa have received the most support so far

Launched in early 2022, the aid scheme has granted funding to a total of 16 broadband projects and seven network builders so far, with Traficom having issued government support decisions to Ikaalisten-Parkanon Puhelin Oy (IPP), MPY Telecom Oyj, Saimaan Kuitu Oy, Karelnet Oy, Siikaverkko Osuuskunta, Sunet - Suupohjan seutuverkko Oy and BLC Infra Oy. Support has also been applied for by KaseNet Oy and Vaaranvalo Osk, whose applications Traficom is currently processing. 

Fast optical fibre networks are being built with government support at least in the regions of South Savo, Pirkanmaa, North Ostrobothnia, North Karelia, South Karelia and South Ostrobothnia. The largest project in monetary terms is IPP’s planned optical fibre network building project in Vesilahti, Pirkanmaa, but from Traficom’s perspective, all of the funded projects are valuable. "The need for fast and reliable communications connections is constantly growing. Finland boasts extensive mobile network coverage, and household access to optical fibre has also been increasing in recent years. In spite of this development, only just over half of Finnish households currently have access to an optical fibre connection. Extensive and reliable connections enable fast digital services for households,” emphasises Deputy Director-General Jarno Ilme.

A prerequisite for the government support issued by Traficom is that the municipalities where the networks are constructed cover a share of the construction costs as defined in a Government decree. To get network building projects off the ground, it is essential for municipalities to have a desire to improve connectivity in their areas. 

Aiming for more extensive optical fibre coverage across Finland

The EU has set a goal of providing gigabit connectivity to everyone by 2030. Finland is committed to this goal and is doing its part in promoting the building of fast networks by supporting the building of optical fibre networks in areas where they would not be built on market terms alone. The government support must not disrupt competition in the market, which is why there are strict terms and conditions in place for its distribution. “The majority of the networks built in Finland are built by telecommunications operators without government support, but the support makes it possible to build optical fibre networks even in areas where the demand for fast connections is not high enough for networks to be built on market terms,” states Senior Specialist Aleksandra Partanen. 

Support still available, but time is running out

The support decisions issued by Traficom thus far have allocated EUR 15 million of the government support reserved for the building of optical fibre networks, which is just under half of the total appropriation of EUR 32 million. The support, which is financed by the EU Recovery and Resilience Facility (RRF), must be allocated to projects by the end of the year, as after this it can no longer be granted. “We are now urging regional councils – key operators in the support process – to launch tendering procedures in cooperation with municipalities without delay so that network builders can be issued support decisions before the end of the year,” states Partanen. To facilitate tendering, Traficom has carried out market analyses of the areas of over 90 municipalities.   

Extensive and reliable connectivity contributes to the vitality of municipalities and the business potential of companies. As such, municipalities should not hesitate to pursue optical fibre building projects eligible for the support. This holds especially true for rural municipalities, which scored an average of 2.5 stars out of five in Traficom’s most recent broadband rating published earlier this week.