A report indicates that the cost of fiber optic connections in Finland may increase significantly due to the dominance of closed networks compared to open networks.
A recent report on fiber optic networks in Finland, commissioned by fiber network company Valokuitunen and conducted by consulting firm Arthur D. Little, warns that the pricing model for fiber connections may lead to escalating costs. While Finland has made progress in expanding fiber network coverage comparable to other Nordic countries, it currently operates under a closed network model, unlike Sweden and Denmark, where open networks are the standard. This limited openness results in less price competition among service providers.
An open fiber network allows multiple Internet service providers (ISPs) to offer services to households through a shared infrastructure, fostering competition and potentially lowering costs for consumers. In contrast, a closed network is controlled by a single company that owns all layers of the network—cables, devices, and services—thereby limiting choices and competition. This model might provide more control over revenue but raises concerns about maintaining competitive pricing and innovation in the market.
The CEO of Valokuitunen, Heikki Ka, emphasized the risks associated with the closed model. If the trend continues without adjustments towards more open structures, the report predicts that consumers will face higher prices for internet services, diminishing access and affordability. As Finland navigates this crucial juncture in its fiber development, stakeholders are urged to consider the implications of their network structures on future pricing and accessibility.
