Investing in broadband reduces the urban-rural divide

It is imperative that broadband is rolled out across the country. New technological advances are being made all the time, but without the right conditions, these advances risk widening the gap between urban and rural areas.

New broadband investments of SEK 42 billion, of which SEK 21 billion in rural areas, are now needed for the whole country to live.

Today, almost 9 out of 10 households and businesses in urban areas have access to a 100 Mbit/s connection, but in sparsely populated areas the figure is barely 4 out of 10. IT&Telekomföretagen recently released a report - Snabbt bredband för sysselsättning och tillväxt i hela Sverige - on the lack of investment in broadband expansion.

Individuals may find that current connection speeds are sufficient for browsing Instagram or watching Netflix, but the issue of digital infrastructure is about much more than everyday needs.

It is about what the future society will look like. If there is no high-quality and robust infrastructure, the great technological advances of digitization will never be made available to the entire population of Sweden.

Digital infrastructure is a prerequisite for municipalities and regions to be able to cope with the welfare of the future.

A concrete policy is needed for the era of digitalization

Establishing high-speed connectivity throughout the country can be compared to the development of mainline railways more than 100 years ago. At that time, there was an active policy to break up settlements and to bring the whole country to life. Today's policy needs to be characterized by similar visions, but for the age of digitalization.

Expanding broadband throughout the country will improve conditions for business. The work of existing companies will be made easier and the thresholds for companies considering moving to another location will be lowered.

Rural areas need to be seen as a shared challenge

In our report, we conclude that Sweden will lose 28,000 new jobs and SEK 11.5 billion in additional tax revenue every year if sparsely populated areas are not also given access to high connection speeds. Market players are prepared to continue making major investments. But the government must also be prepared to assist with support money.

The report also provides examples of data for smaller municipalities around the country. One of these is the municipality of Berg.

Extending broadband to everyone in the municipality is estimated to have a one-off cost of between SEK 60 and 80 million, but would increase annual tax revenues by SEK 20 million. At the same time, the expansion would create between 50 and 60 new jobs.

Investments in broadband are both necessary and beneficial. The public sector now needs to do its part to reduce the gap between urban and rural areas. Expanding broadband throughout the country is the right thing to do to make all of Sweden live.

Åsa Zetterberg, Association Director, IT&Telecom Industries

My Bergdahl, Industry Policy Expert, IT&Telecom Industries