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PTS broadband proposal misses the mark

It is expensive to expand the broadband network to sparsely populated areas and rural areas. Three billion is now being added to Sweden's broadband expansion, but it will not facilitate the expansion where the support is most needed. This is the opinion of the seven northernmost regions after having read the Swedish Post and Telecom Agency's proposal.

Male customer in a checkered shirt pays via card reader at a food truck.
Photo: Mascot Image Agency/Johnér Image Agency.

The Swedish Post and Telecom Agency (PTS) has submitted a report with recommendations on how the support, Focus on expanding broadband in areas with special needs challenges, should be used. In the report, PTS recommends that a model for broadband support that already exists should be used when the three billion is distributed.

In a letter sent to the Government Offices, the seven northernmost regions now oppose the authority's conclusions.

The recommended model does not solve the problem, they believe. It neither addresses areas with particular challenges nor takes into account higher development costs in sparsely populated and rural areas. That is what should be the focus of the funds to be distributed, say the seven northern counties, through their regional development directors.

In the letter, the directors highlight that the three billion comes from agricultural policy. The main purpose is therefore to create competitiveness and reduce socio-economic differences in rural and sparsely populated areas.

But this model is designed so that the support will miss that goal, the seven northernmost regions argue. The support will end up in large areas of competition, where the most cost-effective expansions are given priority.

Now PTS needs to receive new and clearer directives, the letter states. Areas that actually have special challenges must be defined. When distributing support, PTS must also take long distances into account, the regions believe.

Letter PTS' broadband model is not adapted for areas with low coverage (pdf)

Want to know more?

Please feel free to contact Roger Ylinenpää if you have any questions.
roger.ylinepaa@norrbotten.se