Ms. Suvi Lindén, Minister of Communications, Finland - Global Economic Summit on Trade and Investment, Mumbai, India, January 21, 2010

Session III on Development of Integrated Infrastructure : Telecom

Honourable Participants,
Ladies and Gentlemen,

Thank you very much for the opportunity to speak at this summit. My speech will concern telecom infrastructure, and in particular how we can enable growth for businesses and enhance equality among citizens by means of communications policy.

First of all, I will describe some of the latest developments in the use of radio spectrum and explain how it has influenced the spectrum policy in Finland. Secondly, I will discuss broadband policy, and finally, I will say a few words about the importance of research and development.

The role of communications policy in general

Over the past two decades we have seen amazingly fast growth in wireless communications. Progress has been primarily based on the development of wireless technologies and a variety of intelligent terminal devices.

Spectrum policy

In the field of wireless communications spectrum policy plays a significant role. It is particularly important to ensure adequate access to spectrum. The prior aim in Finland has been to allocate new frequency ranges to mobile communications. Mobile communications have the highest demand for spectrum. In 2007, the digitalisation process was completed and analogue television transmissions were switched off in Finland. The Finnish Government decided to allocate part of these invaluable frequencies – the so called 800 band - to mobile communications.

The “digital dividend” is a topical issue in many countries, and we hope that a similar solution will be adopted as widely as possible in the world.

Spectrum policy should also be used to ensure that there are enough frequencies for mobile communications in the future. Various alternatives should be considered with an open mind.
I believe that television programmes will gradually be delivered through new distribution channels, particularly through high-speed broadband networks. This will provide an opportunity to reassess the actual size of the digital dividend.

In addition to assisting to optimise spectrum availability, spectrum policy can also influence the terms under which frequencies are used. Finland has been a forerunner in this field: we were the first in the world to approve the use of the GSM 900 frequency range in third generation mobile communications. Since spring 2009, Finland has allowed use of the fourth generation LTE technology in the GSM 1800 range. These decisions have aroused international interest and many countries have followed our example.

The next great shake-up in the use of spectrum will probably occur with the arrival of Cognitive Radio. As well as changing the use of frequencies, it is likely that Cognitive Radio will also bring changes to spectrum management. In a world of frequency-agile technologies and terminal devices, operating licences like the ones currently in use will not necessarily be needed anymore.

Finland wants to be among the pioneers in taking this leap into the unknown. We are aiming to start extensive testing of Cognitive Radio on our television frequencies as early as this year. Such spectrum policy decisions open up opportunities and enable growth.

Universal service

Thinking in terms of democracy, the greatest benefit in the society that the development of wireless communications can provide is to ensure basic communication services for everyone. Finland is a very sparsely populated country. The area of Finland equals approximately to 10 percent of the area in India, but our population equals to only less than 0,5 percent of the Indian population.

Largely due to the wireless networks, we have been able to set a 1 megabit per second broadband service as the basic service. Since July 2010, every Finn will be ensured the possibility to access 1 megabit broadband at a reasonable price in their permanent place of residence. This enables basic services, such as access to information, e-mail and e-banking, among many others.

High speed broadband and
integrated construction of networks

In the longer term, of course, a speed of 1 Mbit/s will not be enough. The aim of our national action plan – Making Broadband Available to Everyone – is that the entire country will be covered by 100 megabit high-speed networks by 2015. Both wireless and fibre solutions will be used to achieve this objective.

In built-up areas telecom operators are expected to build high-speed connections on market terms. Extending the coverage to nearly 100 percent will require the use of public subsidies in the remotest areas.

In June 2009 the Finnish Government expressed its strong support for joint construction of networks. When transport infrastructure, water management networks, electric cables and communications cables are constructed at the same time, the costs for digging may be divided between network operators. In the overall costs of communications connections, digging works may amount to as much as 80 percent.

Why do we need 100 megabit connections? I believe – like many others in Finland – that faster and more symmetrical connections will be needed – and upstream rates need to be high as well in the future. In the coming years population ageing will be faster in Finland than in most other countries. This change in the population’s age structure is a major challenge for the sustainability of the public economy, since in the future a smaller working-age population has to bear responsibility for an increasing number of economically non-active people. Increased use of ICT has been proved to have an important role in the economic growth and increase in productivity. I believe that future well-being of our society highly depends on how businesses, public administration and private citizens seize the opportunities provided by new applications in information and communications technology. And future applications call for faster communications speeds.

Let me give you one example on the future applications. A rate of 100 megabit per second will provide better opportunities for real-time collaboration, for example. Advanced videoconferencing systems, often called “telepresence” make participants feel they are literally in the same room together, giving a new meaning to “face-to-face” communications.

Telepresence systems can connect businesses, schools, hospitals and homes. Access to best teachers, professors and medical specialists will no longer be dictated by location.

Research and development

Technological development calls for continuous efforts in research and product development. With regard to spectrum research it is essential that we are able to allocate frequencies to be used also in research, testing and education, as well as for commercial utilisation. Finland has a long tradition of radio technology research, both in universities and in businesses.

We want to make sure that we continue to offer a favourable environment for long-term research in the future. A sparsely populated country such as Finland is more suitable for frequency testing than other, more densely populated countries, because there is less interference caused to the activities of commercial telecom operators.

In March 2009 the Finnish Government decided that local restrictions for reasons of research, testing and education can be imposed on all significant mobile communications frequencies.
I hope that this decision will attract new research and product development activities to Finland.

Conclusions

Ladies and Gentlemen,

Communications technologies continue to make triumphant progress. It is a challenge for politicians and administrations to create favourable conditions for businesses to do business and for citizens to use new services, which will improve their quality of life. Developments in technologies and markets finally determine the actual shape the future will take.

In this Global Economic Summit we have an excellent opportunity to hear many interesting speakers from many countries and continents. I am convinced that that the Summit will give us all a lot of fresh ideas about how to promote new generation networks and services for the benefit of creating economic growth and jobs.