IT&Telecom companies' views on the principles for municipal broadband initiatives: Municipalities' actions crucial to achieving broadband targets

Broadband Digital inclusion Digital infrastructure Competition

The principles for municipal broadband initiatives from 2010, which SALAR chose to abandon in spring 2016, are still relevant and appropriate. The fact that all municipalities benefit from the willingness of private actors to invest, instead of limiting them, is the key to ensuring that everyone throughout Sweden has access to a good and future-proof digital connection as soon as possible. This is emphasized by IT&Telekomföretagen in its response to the Swedish Post and Telecom Authority's request for comments on the principles.

In order to promote broadband development in Sweden's municipalities, the Swedish Post and Telecom Authority (PTS), the Swedish Association of Local Authorities and Regions (SALAR) and the Swedish Competition Authority (FCA) agreed in 2010 on a number of common principles for municipal initiatives in the broadband area. The starting point for the principles was to provide the country's municipalities with guidance to act in their various roles in accordance with current legislation, particularly in the area of competition law.

In the spring of 2016, SKL chose to withdraw from these common principles, which IT&Telekomföretagen, among others, believes has created unrest in a well-functioning market and contributed to some municipalities being reluctant to cooperate with private operators. This has both delayed broadband expansion and made it more difficult for residents and businesses in some municipalities to gain access to the fiber connection they so badly need, and led to a limited supply on the broadband market.

PTS and the FCCA share the view that the principles are still essentially appropriate and should apply. The authorities have nevertheless partially agreed with SKL by asking all stakeholders concerned to submit their views and proposals on how the principles can be clarified and made even more appropriate. The aim is that by following the principles, the municipalities will be guided to best protect the interests of their municipal members in the broadband area.

In summary, the views expressed by IT&Telecom in its response to the Authority are that the 2010 Principles for Municipal Action on Broadband are essentially very good and appropriate. The wording is still highly relevant to the various roles through which municipalities influence the market: as planners of broadband infrastructure, as providers of access to land and conditions for this, as network owners and operators, and as property owners. What we see is the problem of non-compliance: that in those municipalities that do not follow the principles, inefficiencies and unhealthy competition arise that do not promote broadband deployment and that this primarily affects the municipalities' residents.

The members of IT&Telecom who have actively chosen to support this consultation response are Colt Technology Services AB, Com Hem AB, IP-Only AB, Svensk Infrastruktur AB, Telenor Sverige AB and Telia Sverige AB.

- Our hope is that the authorities will take on board the comments now being received and then further clarify the purpose of the principles and why they must be complied with. Basically, it is about something as obvious as the laws and regulations that exist, and which aim to promote broadband expansion and the opportunities to achieve the government's ambitious broadband goals, must be followed," says Kajsa Frisell, industry policy expert in telecom and digital infrastructure at IT&Telekomföretagen.

- Our role as a trade association is to promote and create conditions for continued investment in digital infrastructure. The fact that all municipalities benefit from the willingness of private actors to invest, instead of limiting them, is the key to ensuring that everyone throughout Sweden has access to a good and future-proof digital connection as soon as possible. If we are to achieve the broadband targets, the actions of the municipalities are crucial, which is why the principles and compliance with them continue to be of great importance," says Kajsa Frisell.