Wireless broadband the most economical option in sparsely-populated areas
- 2008-11-07 10:06 UTC
As of the beginning of 2009, Sonera adjusts the pricing of fixed broadband connections to better match their costs. The changes are the result of increased maintenance and installation costs of the extensive fixed-line network. The charge for the one megabit wireless broadband connection remains the same, that is, EUR 39.90 per month. The corresponding wire connection in sparsely-populated areas will cost EUR 49.90 per month as of the beginning of next year.
Wirelessly to the Internet in almost all of Finland
At the beginning of next year, Sonera will change the prices of fixed broadband to better correlate with the costs. For some customers in urban areas the price will be lower, for some higher. In sparsely-populated areas, the fixed one megabit broadband will cost EUR 49.90 per month in the future, whereas wireless broadband in Digita’s @450 network costs EUR 39.90 per month. Digita’s network coverage is 97% of the Finnish population. For those who move on to wireless broadband, Sonera offers a 50% discount on the modem.
Broadband in the fixed network unprofitable for Sonera
“At the moment, consumer broadband business operations are unprofitable for Sonera. This is due to higher installation and servicing costs and due to Sonera having a vast number of fixed-line network connections in sparsely-populated areas where customer loss has been the greatest, and a small number in towns where the broadband business is the most profitable,” says Juha-Pekka Weckström, in charge of broadband business operations in Finland.
Sonera aims to restore its broadband business operations in Finland to a sound basis by investing in a fibre-optic network and wireless broadband, because maintaining an outdated pole network or investing in it is no longer financially sensible. The fixed-line network in sparsely-populated areas, more than half of which is vacant of customers by now, causes the company the annual losses of EUR 30 million. Sonera’s broadband strategy additionally supports the Finnish state’s target of everyone having access to one megabit broadband in 2010 and one hundred megabit broadband in 2015.
“We have worked with determination to promote wireless solutions so that it would be possible to provide broadband services all over Finland at a reasonable price. We have now reached the technology crossover point where wireless broadband becomes the most economical option for customers in sparsely-populated areas to obtain an Internet connection for their homes," Weckström continues.
Vice President Juha-Pekka Weckström, TeliaSonera, Broadband Services Finland
Tel. +358 400 564 754
Vice President Jussi Salminen, TeliaSonera, Broadband Services Finland, Home Services
Tel.: +358 40 834 5818