Iceland - Telecoms, Mobile and Broadband - Statistics and Analyses

Iceland - Telecoms, Mobile and Broadband - Statistics and Analyses

Iceland begins close-down of the PSTN

Iceland has one of the smallest yet most progressive telecom markets in Europe. The country in 2020 became the top in Europe for fibre penetration. It aims to provide a fixed broadband service of at least 100Mb/s to 99.9% of the population by the end of 2021, an ambitious target by international standards and one which it is likely to achieve given the progress which operators have made in extending the reach of fibre networks.

There is effective competition in the mobile and broadband markets, with a number of players having emerged to challenge the dominance of the two leading operators Síminn and Sn, which have interests across the telecom sectors. Sn was formerly Vodafone Iceland before being rebranded to reflect the company's move into broadband and broadcasting following its December 2017 acquisition of most of the telecoms and media interests of 365 Media. The new entrant, Nova, has become the leading player in the mobile market and has quickly expanded its presence in the fixed-line segment, particularly in fibre.

The telecom market has shown some resilience in recent years following the significant economic downturn a decade ago, supported by continuing investment in mobile and fixed-line broadband infrastructure by operators and well as by the government's Telecommunications Fund which is supporting Next Generation Access networks, particularly in rural areas.

Key developments:

Iceland becomes top-ranked European country for FttP penetration;
Sn signs sale and leaseback deal for its passive infrastructure;
Síminn contracts Ericsson to build its 5G RAN, aiming for national 5G coverage by end-2022;
Government adds ISK450 million to Telecommunications Fund for fibre network builds;
Farice contracts builder for the IRIS submarine cable to Ireland;
Síminn begins process to close down its PSTN;
Sn extends 500Mb/s FttP service to northern areas of Iceland;
Report update includes the regulator's market data to December 2021, operator data to Q1 2022, updated Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

Sn (Vodafone Iceland), Síminn, Nova, Tal, 365 Media.