Rural areas lose out - Government broadband target risks becoming a numbers game

Fast and secure broadband is a necessity for every citizen and essential for people to live and work across the country.
- People and large parts of our country risk being left out of our smart, connected society and all its opportunities. New broadband investments of SEK 42 billion are needed, including SEK 21 billion in rural areas," says Åsa Zetterberg, Director of IT&Telecom.

IT&Telekomföretagen's new report, Fast broadband for jobs and growth throughout Sweden , shows that Sweden will lose 28,000 new jobs and SEK 11.5 billion in additional tax revenue if people in rural areas are not also connected with fast broadband. Today, almost nine out of ten households have access to 100 Mbit/s in urban areas, but only four out of ten households in rural areas.

Rural areas prevented from joining the digital age

- This is far from the goal of a fully connected Sweden. And it is an unacceptable difference. A rural area without access to fast broadband means that people and businesses cannot exist and develop there like society at large. We now need to take joint action not to leave rural areas alone to their fate, but rather to strengthen their attractiveness. We need to ensure that the infrastructure of the future is available throughout the country for the benefit of welfare, jobs, competitiveness, tourism and climate adaptation," says Åsa Zetterberg.

- The government's broadband target risks becoming a numbers game. The goal, that 95 percent of households and businesses in Sweden should have access to 100 Mbit/s by 2020, can be achieved if densely populated areas reach 100 percent and sparsely populated areas only 46 percent, says My Bergdahl, industry policy expert, IT&Telecom companies.

Concrete political decisions are now needed

Broadband expansion cannot take place without market investments, but these need to be supported by concrete political decisions. During the period 2014-2018, the government allocated around SEK 5 billion through broadband support, compared with investments in traditional infrastructure such as roads, railways and shipping totaling SEK 700 billion over ten years.
- "It's time to start looking at digital infrastructure in the same way as traditional infrastructure. Anything else is unsustainable," says My Bergdahl.