Brief History of Telecommunications
The first telephone lines were built in Finland in 1877 when Finland was still under Russian control. Entrepreneurial individuals began building telephone lines between harbors, railroad stations and warehouses to improve communication. Licenses for operation were only granted to local companies that were outside the control of the Russian government.
During these times the number of small telephone companies grew all over Finland. In 1938 there were 815 local telephone companies operating in Finland. Practically every village in Finland had their own telephone company. This number has steadily decreased (see table.)
| 1938 | 1950 | 1955 | 1960 | 1965 | 1970 | 1975 | 1980 | 1985 | 1990 | 1995 | |
| Number of Telephone Companies in Finland |
815 |
687 |
557 |
201 |
88 |
73 |
62 |
61 |
58 |
51 |
49 |
Since July 1994, there has been free market competition for virtually the entire spectrum of telephone communication. Finland's state owned PTT, Telecom Finland, and 49 local telephone companies, the Finnet Group, which operate in regional areas, currently compete for market share. Competition, automation, increased investments needs and technical standards have forced many of the local companies to merge. Data communications are now provided by the operators of public telecommunications services.
Key Players in the Finnish Telecom Market
Telecom Finland, is the state owned telecommunications service provider. It is part of the Finnish PTT and is the largest government owned telecommunications operator. Telecom Finland was part of the Ministry of Transport and Telecommunications until 1990. Telecom Finland provides long-distance, international, telex, data and mobile networks throughout Finland. Thirty percent of the population receives local telephone services from Telecom Finland. Telecom Finland's main advantage was that it possessed the sole full operators license for international calls. However, with competition expected to begin in 1994 for international calls, local calls and trunk traffic, this advantage could slowly disappear. Stat-USA groups the services offered by Telecom Finland into the following categories:
* Local Network Services
* Long Distance and International Network Services
* Mobile Communications
* Business Services
* Sales of Customer Equipment
The Finnet Group (telcos) is composed of 49 local telephone companies and several new, jointly owned companies. Telcos provide local communication services. The Telco Groups are not controlled by single entities but are linked through mutual business agreements. Stat-USA groups the main business areas of the telcos into:
* Telephone Services
* Data Communication Services
* Cable-TV Services
* Terminal Equipment, Sale, Rental and Maintenance
ATM is expected to be offered as a basic connection for households by the year 2000.
Fiber Optics in Finland
Telecom Finland and Intertelecom, a Russian company, began service with the fiber optic cable running between Helsinki and St. Petersburg on 18 May 1993. The new cable, known as the Finland-Russia Line (FRL) is the first western cable to terminate in the heart of St. Petersburg. Unlimited capacity and improved communications between Finland and Russia will be the products of the FRL. Finland is also positioning itself as a gateway for telecommunications traffic between Russia and the remainder of the world.
Statistical Information on Telecommunications in Finland
(The figures were obtained from Statistical Abstract of the World, Second Edition, 1996.)
(These figures were obtained from The Seventh Annual Computer Industry Almanac 1994-95.)
According to Statistics Finland ; every fourth Finn has a mobile phone and over 90% of Finnish households are equipped with some kind of telephone. Statistics Finland also provided a table on Communication Statistics in Finland. Click for the table.
Finland's Cellular Network
Helsinki became the first capital city in the world to introduce the Digital European Cordless Telecommunications (DECT) in November 1994. This system allows callers to carry their phone into restricted areas and still make and receive calls almost as cheaply as from a fixed line.
The White Book of Telecommunications, published by the FINNET Group states that there are currently over one million mobile phones in Finland. In 1985 only 68,000 mobile phones, or 3% of the total telephone and mobile phone connections, were connected. In comparison, the figure for 1995 escalated to 27% of total connections.
A 7 April 1997 article in Business Week places Finland on the cutting-edge of technology;
"This country...has the highest penetration of wireless phones in the world - 30% vs. 17% in the US - and the highest rate of Internet usage, 6%. Its phone network is 100% digital, and a steady stream of new services are tried here first, from wireless Internet Webcasting to electronic cash systems."
For information on Television, Radio, Cable, Satellite TV and more click into
FINFO: FINLAND: Land of newspapers and modern communications technology
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Last Update: 1 May 1997