State aid enables ultra high-speed internet connections in Sodankylä and Ranua

Covering fibre-optic networks are built in Sodankylä and Ranua. By means of the networks, ultra high-speed 100 Mbps broadband subscriptions are provided to inhabitants and companies in the area. FICORA has granted over EUR 6 million worth of state aid for the projects.

Tähtikuitu Oy builds an advanced broadband network which will cover the entire area of the municipality of Sodankylä. The estimated length of the network is quite something – 1,200 kilometres. The construction work has already begun. At the moment, the network is expected to be completed by the end of 2016. After the network has been completed, approximately 2,200 households and companies can have a high-speed broadband connection.

"By means of a reliable and fast information network, we want to improve appreciation and viability of remote villages and to promote inhabitants' opportunities to participate", maintains Jussi Rantamo, Managing Director at Tähtikuitu Oy.

In the area of the municipality of Ranua, the fibre-optic network is built by Ranuan Kuituverkot Oy. 900 kilometres of fibre network will be dug into the ground and it will provide services to approximately 1,200 households and companies. The purpose is that the network will be completed by the end of 2017. "Starting an own municipal corporation was primarily a matter of industrial policy. Good and modern telecommunications connections are essential to business activities. Good connections also help to maintain, or even to improve, the service level of inhabitants in the municipality", maintains Jukka Rinne, Managing Director at Ranuan Kuituverkot.

Fibre-optic networks offer unlimited possibilities now and in the future

The building of fibre-optic networks both in Sodankylä and Ranua is seen as a strategic matter from the viewpoint of both vitality and industrial policy. By means of a fibre-optic network and electronic services, distances can be made shorter and the regional equality can be improved.

"The network enables that the municipality will invest, in particular, in developing electronic nursing services and in the needs of businesses", maintains Rantamo.

From the viewpoint of both companies, optical fibre is the only technology that guarantees that the level of speed, reliability and available capacity is sufficient for many years to come. "Without proper connections, any municipality loses track of development. Therefore, both Ranua and Sodankylä has decided to invest in own fibre-optic networks", comment both companies.

Projects in Sodankylä and Ranua are funded by the state

In total, FICORA granted over EUR 6 million worth of state aid for the projects in Sodankylä and Ranua. The amount of state aid granted for Sodankylä and Ranua was EUR 3,7 million and EUR 2,3 million, respectively. The projects were also funded by the municipalities of Sodankylä and Ranua. The state aid has been granted as part of the Broadband 2015 project. "The projects in Sodankylä and Ranua are a good example of such broadband building where a municipality and local players took things forward themselves because nationwide operators were not interested in providing high-speed connections their area", maintains Päivi Peltola-Ojala, Head of Broadband and Media Group at FICORA.

The purpose of the Broadband 2015 project is to ensure that ultra high-speed internet connections are available in sparsely populated areas. The state funds the project with EUR 64 million, of which 70 per cent has been granted so far.

Tähtikuitu and Ranuan Kuituverkot have mentioned that without significant public aid the projects would have remained unmaterialised.

Further information:

FICORA: Sirpa Sillstén, Legal Counsel, tel. +358 295 390 542
FICORA: Päivi Peltola-Ojala, Head of Broadband and Media Group, tel. +358 295 390 539

Tähtikuitu Oy Sodankylä: Jussi Rantamo, Managing Director, tel. +358 40 7648 213,
Ranuan Kuituverkot Oy: Jukka Rinne, Managing Director, tel. +358 40 6484 525,

The text has been specified on 16 October at 2.00pm:
"approximately 2,200 inhabitants and companies" changed to "approximately 2,200 households and companies"
"approximately 1,200 customers" changed to "approximately 1,200 households and companies"

Key words: Internet , Broadband , Networks , News

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