Despite continued investment from industry in addition to public subsidies, the PTS believes that it will be difficult to meet all of the Government’s objectives
The Government wants to see the whole of Sweden have access to high-speed broadband by 2025
On 19 June 2024, Sweden’s Post and Telecom Authority (PTS) published its annual report on progress against the objectives of the Government’s national broadband strategy, including forecasts for broadband network development and assessments of the country’s likelihood of meeting domestic and EU-level connectivity goals. According to our Broadband and USO Tracker, Sweden has three targets for 2025:
98% of all households and businesses should have access to a 1Gbps connection;
A further 1.9% should have access to a minimum 100Mbps connection; and
The remaining 0.1% should have access to a minimum 30Mbps connection.
Despite the availability of broadband subsidies and investment in expanding 5G coverage, the PTS states it will be difficult to fulfil all three of the Government’s targets and therefore its overarching ambition that by next year all of Sweden should have access to high-speed broadband.
Network investment continues to be high but achieving nationwide coverage of 100Mbps broadband is unlikely
The regulator states that the goal for 98% coverage of gigabit-capable broadband was achieved in October 2023 and that it will be possible to ensure universal coverage of 30Mbps broadband by leveraging satellite technology to connect the final 6,000 premises. However, delivering 100Mbps broadband to 99.9% of the Swedish population is unlikely to be achieved (whether via fixed, mobile or satellite services), with the PTS projecting that coverage will reach 99.3% in 2025. It does not suggest this is due to a drop-off in private or public investment, which has remained high and will stay at broadly the same level through 2025. Total network investment decreased in 2023 by 2% to just over SEK12bn (£898.7m), with an 11% increase in mobile network investment all but offsetting the 7% reduction in fixed network capex. Continued public funding for broadband – of which SEK813m (£60.9m) will be awarded later this year – and the ongoing expansion of 5G networks will maintain a consistent level of total investment, according to PTS estimates..
It will also be difficult to meet the EU’s 2030 targets for digital infrastructure
Under the Digital Decade policy programme, the EU aims to ensure, by 2030, that all households across the bloc are connected to a gigabit-capable broadband network and that all populated areas have 5G coverage. According to the PTS, Sweden will meet the target for 5G coverage, with 90% of households enjoying access as of October 2023. However, it will be difficult for the country to reach nationwide 1Gbps availability by the deadline. The EU has adopted a stricter definition of gigabit broadband coverage compared to the Swedish Government’s strategy, counting only those premises with an actual connection to suitable infrastructure, as opposed to simply having access. The PTS states that the costs of expanding gigabit-capable networks to the remaining unconnected households would be very high. While public funding will be allocated over the coming years, the regulator does not consider that this support will be of a sufficient scale to achieve the target.
