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Ficora warns broadband providers on price hikes

Large broadband operators in Finland are raising their network rental prices by 10-20 percent. According to the Finnish Communications Regulatory Authority Ficora, higher rents could reduce competition and weaken competition in the broadband sector.

Laajakaistaliittymän johto on kytketty tietokoneen taakse.
Image: Yle

Ficora fears that the cost of broadband connections could rise because many of Finland’s biggest teleoperators plan to raise network rents by 10-20 percent in the autumn. That could in turn prevent new operators reaching the market, which would restrict customer choice in broadband providers.

Even before the increases, Finnish charges for broadband network use are among the highest in Europe. The EU average is 7.97 euros, while in Finland charges range from 11.90 euros to 13.99 euros.

Ficora Director-General Asta Sihvonen-Punkka told Yle that in her view the price rises reinforce the need for regulatory price limits. Sihvonen-Punkka says it is impossible to estimate how much the 10-20 percent increase in network charges will influence charges to customers.

Sources: Yle