Telecommunications operators' investments in fixed networks grew by a whopping 88% in 2023 compared to the previous year. Telecommunications turnover increased by 2.7% last year. The data is based on income and in-vestment data collected annually from telecommunications operators by the Finnish Transport and Communications Agency Traficom.
Telecommunications operators invested 88% more in fixed broadband in 2023 than the year before. The investments can be divided into material and immaterial in-vestments, of which the material investments are primarily those in the actual net-work infrastructure. The combined total of material investments in mobile, fixed and TV and radio networks grew by a total of 40% in 2023 to EUR 711 million, com-pared to EUR 507 million a year earlier.
The investment rate in telecommunications also rose and was 20% for material in-vestments, compared to 15% in 2022. The investment rate indicates how much in-vestments were made in relation to the turnover. Thus, telecommunications opera-tors made more investments than before, even though turnover did not grow in the same proportion.
Construction of fibre optic accelerated fixed network investments
The amount of material investments by telecommunications operators in fixed net-works grew by 88% from the previous year. In 2023, the fixed network material investments amounted to a total of EUR 385 million compared with EUR 205 million last year.
The amount of material investments in the mobile network increased by only 6% in 2023 compared to the previous year, totalling EUR 292 million. The volume of in-vestments in TV and radio operations increased by 32%, and the total investment amounted to EUR 35 million.
"The growth in fixed-network material investment by telecommunications operators is due to investments in the construction of the fibre optic network. The hundreds of millions of euros in funding packages previously announced by companies for op-tical fibre construction are now beginning to show in the amount of investment,” states Special Adviser Leo Sievänen.
Telecommunications turnover increased slightly
Telecommunications turnover grew by 2.7%, to slightly over EUR 3.5 billion in 2023. Correspondingly, mobile network turnover grew by 3% and fixed network turnover by 5%. In contrast, the turnover of TV and radio operations decreased by 8% from 2022.
Elisa Corporation is the largest telecommunications operator in terms of telecommunications turnover with a 37% share. Telia Finland's share was 29% and DNA Plc's 23%. The combined share of other telecommunications operators in the turnover of telecommunications was 11% in 2023.
The combined wholesale and retail revenues of fixed and mobile networks grew by 2.7% from the previous year, totalling EUR 3.1 billion in 2023. Mobile retail revenues increased by 4%, fixed wholesale revenues by 4% and fixed retail revenues by 1%. In contrast, wholesale mobile network revenues decreased (-10%).
(-10 %).
Further information
Telecommunications turnover (External link)
Investments in telecommunications (External link)
Special Adviser Leo Sievänen, p. +358 29,534 7300, leo.sievanen@traficom.fi
Background
The Finnish Transport and Communications Agency Traficom collects annual income and investment data from telecommunications operators.
Tangible investments in telecommunications are indicated as gross investments in euros, including, e.g., real estate, vehicles and office equipment supporting the business in each subcategory. All fibre investments, including backbone fibre, are included in fixed network investments. If it is not clear whether an investment (for example an equipment room) should be included in figures for the fixed network or mobile network, it is included in fixed network investments. The investments include invested broadband aid. The investment rate in telecommunications is calculated by dividing total investments in telecommunications by the total turnover of the telecommunications industry.
The total telecommunications turnover is presented in nominal value. In the statistics, the turnover also includes revenues from operators’ TV and radio content services that are not considered actual telecommunications operations. Retail revenues from telecommunications operations include aggregated data on revenues from telecommunications services sold to end customers (businesses or consumers). Wholesale revenues form telecommunications operations include revenues from telecommunications services that telecommunications operators sell to each other. These services are used for the provision of other telecommunications services to end customers.