Debate: Let the market drive digitization

Unfortunately, concerns have been raised that have made municipalities reluctant to cooperate with market players in broadband expansion. We now urge the new Minister for Digitalization, Peter Eriksson, to take greater advantage of the willingness to invest that exists in the market so that Sweden gets back on track, write Anna-Karin Hatt, CEO of Almega, and Caroline af Ugglas, Deputy CEO of the Confederation of Swedish Enterprise.

The ongoing digitalization knows no boundaries and involves a revolutionary structural transformation in most areas of society. A basic prerequisite for us to be able to take full advantage of the power of digitalization is that we have a well-developed and robust digital infrastructure, which is accessible to everyone, in all parts of the country.

Our call to the government is to take greater advantage of the willingness to invest that exists in the market and of the power of effective competition to improve the conditions for business throughout the country and at the same time accelerate the digitization of Sweden.

In early March, the Swedish Association of Local Authorities and Regions (SALAR) chose to unilaterally terminate the agreement on principles for how municipalities should act in their various roles in the broadband area. The agreement was concluded in 2010 between the Swedish Post and Telecom Authority (PTS), the Swedish Competition Authority (KKV) and SKL and is fully in line with the government's broadband policy. SKL's actions are worrying.

This has created unrest in a well-functioning market and contributed to some municipalities now being reluctant to cooperate with market players. Some municipalities have gone so far as to completely exclude private actors from investing in broadband expansion, in order to promote their own municipal broadband operations instead. This has not only delayed and made it more difficult for residents and businesses to get access to a long-awaited fiber connection, but also led to a limited supply.

If this trend continues, it will effectively slow down the pace of broadband deployment, reduce the willingness to invest and ultimately hamper growth and innovation, and lead to a halt in the efficiency of the public sector while making it more difficult to run businesses in all parts of the country.

For the digital infrastructure to be able to reach all households and businesses in Sweden, well-functioning cooperation between private and public actors is required, as well as healthy competition that encourages and stimulates continued large investments from market actors. The current Swedish broadband policy - which is based on the idea that it should primarily be market players who are responsible for the expansion of broadband and the provision of services, and that the public sector should only step in when the market does not work - has served and continues to serve Sweden very well.

This is demonstrated not least by the high rate of expansion of both fixed and mobile broadband in recent years. Today, market players are investing heavily in expanding the digital infrastructure, with over ten billion every year. These players want nothing more than to continue expanding. But for them to be able to do so, the rules and conditions provided by the state must be both good and predictable. And this requires Sweden's municipalities to actively affirm and promote effective and functioning competition.

Peter Eriksson: as Sweden's very first Minister for Digitization, you are responsible for and should make it your top priority to get Sweden back on track on this important issue for the future. Take advantage of the market players, instead of limiting them.

Caroline af Ugglas, Deputy CEO Confederation of Swedish Enterprise

Anna-Karin Hatt, CEO Almega