Governmental Policies in Finland

Finland's government supports and encourages the free competition of the telecommunications field. The government does not have any authority over the level of rates charged by the telos, or over cross-subsidization between customers in different geographic locales. Tariff structures are not subject to regulation. Finland's government DOES CONTROL Telecom Finland, which dominates the international call market with a 95% share. The Telecommunications Act of 1987 was amended twice. The amendment in 1990 modified the Act to cover all telecommunications networks and services. The 1992 amendment liberalized data communication by eliminating the requirement for licenses for switched data communications. The government promotes development of a properly functioning information society.

The Ministry of Transport and Communications and the Ministry of Education have both taken the initiative in projects related to the "information highway." The basic connection in Finland, a goal to be reached by 2000, will be ATM technology.

Finland's government developed the "Government Radio Project." This billion dollar project would combine the networks of police, coast guard, customs, aviation and railways. The project was expected to begin in 1996 depending on government funding.

Finland's R&D in signal processing and software technologies is internationally known. The development of ATM technology in the 1990s has been rapid. ATM networks have been launched by both major operators. There are national R&D programs in multimedia and another targeting SMEs in the telecommunications industry. R&D is funded both by national and internation projects and include universities, industry, operators and research centers.

As reported in CSC News, October 1996, Finland's National Outlines are as follows:

• Information technology and information networks to serve as tools in private and public sector renewal.
• Information industry to become an important sector of economic activity.
• Professional expertise in information and communications technology to be maintained at a high overall level, with selected peaks.
• Everyone allowed the opportunity and basic skills for using services of the information society.
• Finland's information infrastructure to perform in all aspects as competitive and capable of providing high quality services.

Finland's National Multimedia Program, financed by TEKES and companies, is an initiative carrying out the above outline. Scheduled to conclude in 1997, it began as a consortium of telecommunications companies, teleoperators and media houses. Research institutes and universities have joined in the program. The program consists of eighteen projects coordinated by Nokia Research Center. Its main object was to prepare the telecommunications cluster for oncoming changes. Competition with foreign firms had to be maintained in the following areas:

1. telecommunications and terminal technologies
2. develop and introduce new infrastructures
3. develop devices for content producers and service providers
4. research and development

The program aims to affect standardization, legislation and general development by setting goals and guidelines. It plans to develop technologies needed in transmitting the applications and services on different technical platforms (ATM, Cable-TV, Cellular, Digital Audio Broadcasting) and the tools for controlling transmission.

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Last Update: 5 May 1997