Broadband in Sweden, 2003 - PTS-ER-2003:27

30/08/2003

PTS has been assigned by the Government to monitor the development and accessibility of IT infrastructure with high transmission capacity, in everyday language, broadband. This includes networks based mainly on optical fibre cable, coaxial cable, wireless links and copper cable (to the extent it is upgraded to ADSL or other DSL technology). The objective of the Riksdag (Swedish Parliament) regarding accessibility is that households and businesses in every part of Sweden should have access to IT infrastructure with high transmission capacity. This objective will be achieved by development primarily through the market. In areas where it is considered that the development is not attained on a market basis, the municipality may receive government support for the development of IT infrastructure.

The municipalities have made great advances in the production of an IT infrastructure programme. The foundations are thereby laid to proceed to the next phase of the Government broadband initiative. Between 20-30 percent of the municipalities have been granted or have applied for support for the development of interurban networks and area networks respectively. The municipalities that have applied for support at an early stage often have experience of other forms of support and have established forms for local collaboration.

The development of IT infrastructure with high transmission capacity is proceeding. Networks based on fibre and radio have increased by almost 10 percent since March 2002 to January 2003 and amount to 175 000 km. This increase entirely relates to the fibre cable network. There are links to a national backbone network in all municipalities and over 90 percent of Swedish localities have links to a interurban network. The number of localities with area networks in some part of the locality has increased and comprise approximately 50 percent of Sweden’s localities, which is an increase of 40 percent since March 2002. It is mainly localities with less than 1000 residents that are entirely without area networks. There are also differences between various forms of housing, where multiple occupation properties have access to broadband to a greater extent than detached houses. The number of households that in January 2003 were able to connect to some form of IT infrastructure with high transmission capacity can be estimated to be between 1.1 to 1.2 million, which corresponds to a fourth of the number of households in Sweden. The number of private customers with links to the Internet via some form of high transmission capacity amounted to 654 000 in December 2002.

The objective of access to IT infrastructure with high transmission capacity in all parts of Sweden has not yet been satisfied. The development of the market is governed to a great extent by demand from both households and businesses and also the public sector. However, it is not normally broadband as such that is in demand, but the services that can be supplied via broadband. Developments are therefore dependent on the development of affordable services. Other factors that influence both accessibility to existing IT infrastructure and development of new IT infrastructure are pricing, both in relation to the end user and the operator, technical requirements and other terms and conditions. There are many factors that influence the rate of development and it is therefore difficult to assess when the objective that households and businesses in all parts of Sweden will have access to IT infrastructure with high transmission capacity will be satisfied.