Building of broadband networks in rural areas is proceeding fast

Published 04.07.2014

Along with the Broadband 2015 project, the availability of 100 Mbps broadband subscriptions improved last year by over 30,000 households. The state aid for the project has enabled that a high-speed broadband subscription is available to a total of over 40,000 households.

By the end of 2013, FICORA and the Centres for Economic Development, Transport and the Environment had granted a total amount of EUR 38.4 million to broadband projects in rural areas. 27.8 million of this granted aid had been paid.

Majority of the new subscriptions in rural areas are 100 Mbps

By the end of 2013, over 6,000 kilometres of the broadband network had been built. This means that the length of the built network increased by about 3,800 kilometres during the year. Approximately 10,600 households or companies have acquired a subscription in the networks that have been built by means of the state aid. 55 per cent of the acquired subscriptions are 100 Mbps.

A high-speed fibre-optic broadband connection enables problem-free TV and Video-On-Demand services for several simultaneous users. In addition, high-speed and reliable connections enable that the operational preconditions for business activities improve.

Aid for building the network in rural areas is essential

The amount of the state aid or EU aid granted for the building of the network in rural areas was approximately EUR 6.4 per built network metre. In rural areas, subscribers live far away from each other. About EUR 6,700 of aid per subscription was targeted for the projects per one subscriber who had acquired a subscription and who was eligible for the aid.

"Without the state aid, the investment would probably cost many of the households too much for the use of information society services. Therefore, they might not acquire a subscription at all. The connection fees charged from the users varied mostly from EUR 1,000 to EUR 2,000 in the funded projects," states Päivi Peltola-Ojala, Chief at FICORA. However, some players provide subscriptions with a connection fee that is clearly lower. As a result, subscriptions are acquired more than the average in these projects.

Further information about the stages of the Broadband 2015 project

Further information:

Päivi Peltola-Ojala, Head of Broadband and Media Group, tel. +358 295 390 539
Harri Grönroos, Communications Network Specialist, tel. +358 295 390 608

On a yearly basis, FICORA monitors how the availability of high-speed broadband develops in the whole of Finland. FICORA published information on the availability of high-speed broadband on 17 March 2014.

Key words: Internet , Telephone , Availability , Broadband , Networks , News

LinkedIn Print