Unhealthy competition hampers municipalities' digital development
Well-functioning competition is the engine for a digital Sweden at the forefront with more modern networks, more innovation, higher security and affordable services. Safeguarding competition and good cooperation between the private and public sectors are important goals in the government's broadband strategy. However, the reality faced by broadband operators in several municipalities contrasts with national strategies and guidelines.
In the report Unhealthy municipal competition from the Confederation of Swedish Enterprise, Almega and Visita, 37 entrepreneurs in 19 different municipalities state that municipalities' own activities in broadband and fiber are a competition problem. The companies' descriptions highlight both the fact that the municipality closes the possibility for private actors to build new infrastructure and that the municipality limits residents to only buying broadband services from the municipal company.
Through their many roles, municipalities play a key role in broadband and digital development. In their role as land and property owners, municipalities are important partners for those who want to bury fiber or establish mobile phone networks. As the owner of municipal companies, the municipality is an important customer base. Many private individuals and businesses turn to the municipality with questions about connectivity and digital services. In addition, municipalities are often the owners of their own urban network with broadband operations.
Municipalities that sit on several chairs need to clearly distinguish their different roles. By actively working for healthy competition and good conditions for the establishment of infrastructure, a municipality can drive digital development and benefit more from market investment and innovation.
"Municipalities that sit on several chairs need to clearly distinguish their different roles."
Some activities that can make a big difference to the digital development of a municipality are
Establish a strategy for broadband and digitalization with good conditions for investment as a basis and competition as a driver.
Ensure that municipal companies and administrations always procure broadband and digital services in competition.
Apply clear and good conditions for access to land and handle requests from all actors equally.
Promote the deployment of mobile phone networks such as 5G by leasing properties for the establishment of masts and antennas.
Instruct its own urban network company to promote good competition by giving service providers access to the network on good terms.
When communicating with residents and businesses, show the possibilities of different technologies that can help connect the whole municipality, do not reward a particular technology or supplier.
Robert Liljeström
Industrial policy expert