Sweden has world-class telecom networks - but the future must be earned
A strong digital network infrastructure with secure, modern and well-developed fiber and mobile networks is a crucial prerequisite for the whole of society to be able to take full advantage of the opportunities of digitization and AI. TechSverige's report Billions of Reasons for 5G shows that the digital transformation enabled by new 5G networks with, for example, automated factories and smart infrastructure has the potential to contribute to an annual GDP increase of SEK 126 billion, corresponding to 2 percent of GDP.
However, it is often said that Sweden is lagging behind and that we are behind in the 5G race - but this is no longer true. On the contrary, several international comparisons show that Sweden has mobile networks and 5G of high international class. To make wise decisions about the digital infrastructure of the future, we need to start at the right end: with facts. By understanding where we actually stand today, we can also see more clearly what is needed to be even better tomorrow and strengthen our position as a global leader in connectivity.
Despite its large size and challenging geography, Sweden has strong fiber and mobile networks, as shown in many measurements and international comparisons. The fact that Sweden fell behind in the initial upgrade of mobile networks to 5G was mainly due to a delay in the allocation of important frequency bands based on security considerations from the responsible authorities. After several years of extensive investments and modernization of the networks, this delay has largely been caught up, which is now increasingly reflected in the often lagging statistics.
A better investment climate is necessary for Sweden to be a leading global network nation in the long term."
In the European Commission's follow-up for 2024, the Swedish network infrastructure with fiber and mobile networks is highlighted as a strength for Sweden. 5G in the high frequency bands, which provide the highest speeds, covers 64.5% of households in Sweden compared to the EU average of 50%. A recent survey showed that Stockholm, together with Porto in Portugal, has the best 5G experience among major European cities surveyed. Statistics also show that users in Sweden and the other Nordic countries are least dependent on the old 2G and 3G networks thanks to well-developed 4G and 5G networks.
However, global competition is becoming increasingly tough and demands on the networks are growing. A better investment climate is necessary if Sweden is to be a leading global network nation in the long term. Measures are needed to facilitate the expansion and development of the networks, but above all to stimulate the use of the public networks, which is the basis for effective market-driven development. TechSverige proposes the following measures for Sweden to become a leading network nation.
- Position Sweden as a leading 5G and 6G nation by strengthening Swedish research and innovation and taking a leading role in international contexts.
- Promote public-private cooperation for socially beneficial 5G solutions for e.g. healthcare, emergency services, defense, transport and energy sectors.
- Increase take-up by ensuring that public authorities always interact with the market as the first choice and use the commercial networks. When the public sector builds its own solutions, it creates a fragmented market and a distortion of competition that crowds out private investment.
- Implement a vigorous simplification of the current EU regulatory framework without duplication, micromanagement and requirements that burden the industry and hamper investment.
- Facilitate licensing processes for mobile network investments and develop government broadband support so that it can be used for both fixed and mobile networks to reach more businesses and households.
Sweden is well placed to continue to be a globally leading network nation and digital pioneer. But this requires clear ambitions, an improved investment climate and that we take advantage of the potential of the networks.
Robert Liljeström
Industrial policy expert