Effective competition the key tool to reach broadband targets

Gunnar Asp and Mikael Philipsson reported on Friday in Dagens Samhälle that broadband is more important than roads and healthcare for growth, according to Novus Opinion, which was commissioned by IP-Only to ask the Swedish people what they consider most important for growth in sparsely populated areas. They said that Sweden's municipalities are currently divided into two teams: those that have functioning broadband and those that are left without. The debaters put their finger on something that we as an industry organization also think is very important - that it is high time that the government set a target for broadband expansion that includes everyone, i.e. not just 90% of Sweden's households and businesses, and that the municipalities' actions in the expansion are of great importance.

Given how crucial good broadband connectivity has become for citizens to be able to participate in society, it is the government's duty to now formulate a clear broadband target that applies to 100% of Sweden's population, regardless of where in the country you are.

Asp and Philipsson write that it goes without saying that all of Sweden should have access to the opportunities of digitization. In addition, we believe that it is also a prerequisite for digitization to reach its full potential in Sweden that everyone has the opportunity to participate in the connected society that is now emerging through a good digital connection. The sooner Sweden can take advantage of the opportunities offered by digitization, the less risk there is that we will lose international competitiveness. Ensuring a well-developed and future-proof digital infrastructure in all parts of the country is therefore a very urgent and central issue for Sweden and a prerequisite for good growth, a functioning and innovative business community and continued welfare.

I've said it many times before, but it bears repeating: the consequences of not having access to a good digital connection are becoming more severe and the risk of exclusion greater. The digital divide risks becoming a social divide. In addition to access to connectivity, the demands on network capacity are increasing rapidly, making it even more urgent to have a future-proof digital infrastructure in place in all parts of the country. The Government therefore has a responsibility, through the broadband strategy that is now being updated, to ensure digital and social inclusion throughout Sweden, not least in less densely populated areas.

The role of the public sector should be to build digital infrastructure where the market lacks commercial conditions, to stimulate market investment and the construction of digital infrastructure, and to make the market-based investments suffice as far as possible. Functioning competition is the primary means of ensuring a choice of high-quality and affordable services for Sweden's consumers, businesses and authorities and thus the single most important tool for achieving the broadband goals. We and the government agree on this. Yet we now see that this competition, and the necessary interaction between market and society, is not really working in several cases.

At present, there is no lack of capital or willingness to expand the infrastructure on the part of market players. However, the rate of expansion is hampered by shortcomings in the municipal licensing processes and the fact that some municipalities do not give equal terms to private operators and municipally owned urban network companies. IT&Telekomföretagen's member companies report several recent examples of this.

Public actors should not engage in commercial activities in competition with private actors, as there is a risk of distorting competition, which the government's current broadband strategy is clear about. IT&Telekomföretagen naturally agrees and would like to emphasize the importance of municipalities also understanding what this means. The country's municipalities decide for themselves how they want to ensure a well-developed and future-proof digital infrastructure for all their citizens. It is therefore of the utmost importance that they choose the right actor to cooperate with and that they place high demands on this actor.

The ability of all players to compete on equal terms is one of the cornerstones of a healthy market. However, when it comes to access to land agreements, master plans, alternative laying methods, reasonable compensation for restoration to the municipalities, not all municipalities live up to this. I believe that in order for everyone in Sweden to be able to participate in the connected society that is now emerging, municipalities must give all actors the opportunity to build our digital infrastructure on equal terms.

So that all of Sweden can access the opportunities of digitalization in the best, fastest and most cost-effective way.