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National broadband strategy. Interim report III.
(24 October 2006)

The National Broadband Strategy focuses on promoting competition within and between all communications networks, promoting the provision of electronic services and content, stimulating demand for broadband services, and continuing the special development measures in those areas in which there is insufficient demand for the commercial supply of broadband facilities.

In approving the National Broadband Strategy, the Government at the same time approved the set of 50 measures set out within it. The Government's adoption of the subsequent Resolution brought with it a further nine measures together with plans to increase the resources for developing mobile broadband solutions that will complement and be interoperable with fixed network broadband services. The Government also called for the accelerated development of content and service production and for the removal of barriers to competition.

The targets regarding the number of connections and the availability of fixed network broadband services were attained in June 2005, six months ahead of schedule. Accordingly, the working group observed in its previous report that the strategy has already largely been implemented. The working group stressed that since the broadband strategy has proved successful, its principles should be maintained as the basis for broadband policy.

Implementation of measures has been continued, and official measures to open up competition have been enhanced. The growth in the number of broadband connections in Finland has been the third fastest in Europe. As in the previous year, the growth rate slowed during the summer but picked up again in the autumn. However, the saturation of the broadband market and recent price increases by operators have had a dampening effect.

There has been a continuous improvement in the regional availability of broadband. The bulk of the work to achieve this has been done by the municipalities and regional councils, whose regional broadband strategies are being put into effect in all parts of the country. Currently, access to fixed network broadband services is possible for 96 per cent of Finnish households, and, as the regional strategies are implemented, this will improve to about 98 per cent. Nevertheless, it is significant that only about 50 per cent of Finnish households have so far acquired a broadband connection.

The provision of wireless connections complementing the fixed network will allow the remaining households to be brought within reach of broadband. A total of 29 permits for regional radio systems for wireless networks have been granted for various parts of the country, and processing of new permits at FICORA will begin after November.

The Government's decision to grant an operating licence to Digita Oy for the construction of a national digital mobile network using Flash-OFDM technology will, on completion, bring broadband connections within reach of everyone throughout the country, even holiday homes in remote areas. However, construction of the network has been delayed by almost a year from the original timetable due to a complaint registered against the decision and to the undeveloped state of the technology. The network will probably be in widespread use by April 2007.

The original targets of the National Broadband Strategy have already been achieved. The target was to have 1,000,000 connections in Finland by the end of 2005. At the end of September 2006, the number of connections was 1,430,000. Also, the availability of fixed network broadband services was to have reached 95 percent; in September 2006, it was 96 per cent. The third target, namely that Finland should retain its fourth place in the EU broadband connection rankings, was met and exceeded, Finland ranking third in September 2006.

The National Broadband Strategy's remaining targets not yet fulfilled are that the most common broadband connection speed should be at least 8 Mbit/s by 2007, and that by the same year, 90 per cent of all Internet connections should be broadband connections. A further target is that Finland should become a world leader in the use of broadband services by the end of 2007.

The working group will produce a Final Report by the end of its term on February 28, 2007 to evaluate the need for and content of any future measures. The National Broadband Strategy has obviously proved successful, and there is still every reason to maintain its principles as the basis for Finland's broadband policy.

Covering letter to the Government

Summary of progress made in implementing the National Broadband Strategy in 2006

Progress report

Broadband distribution and availability in September 2006