Guest blog from Stockholm Chamber of Commerce: The advantages of gigabit broadband

While most cities embarking on Gigabit City strategies are in their early stages, one striking example has 20 years of history from which we can draw some powerful conclusions about the long-term impacts of fibre infrastructure. In 1994, the Stockholm municipal government established a private company, called Stokab, to deploy and manage a city-wide fibre network available to all ICT market players on an equal, open-access wholesale basis. As construction starts on the Peterborough CORE, we spoke to Fredrik Sand from Stockholm Chamber of Commerce about the impact gigabit broadband has had in Stockholm. Stockholm and gigabit broadband Stockholm was an early adapter for gigabit broadband and the impact that it has had on the city has been impressive. It was one of the very first cities to embed the fibre optic infrastructure back in 1994. The thinking behind the implementation was to attract new businesses, retain local talent and become a tech hub. 20 years later, it’s evident that this thinking was justified and has certainly paid off as now every business in Stockholm has access to gigabit speed broadband. The advantages The expansion of the network began in the commercial area of Stockholm’s inner city and from there quickly spread into the larger industrial estates. The ultrafast internet has benefited digital start-ups as well as financial services, banking and R&D intensive organisations. The advantages of gigabit speed broadband are substantial for businesses in Stockholm. Many consumer services companies require ultrafast access to the internet to fulfil their business needs and on top of this, property in a gigabit area increases in value. Owing to the investment in fibre optic infrastructure, Stockholm has a higher proportion of people working in high-tech companies than any other European country with 18% of the region’s total workforce employed in science, technology, engineering and mathematics. Start-ups have also found a home in the city, as it was recently listed in Forbes as one of the world’s best cities for start-ups to build their businesses. Economic impact Telecoms have a crucial impact to Stockholm’s economy as it is one of the main considerations for businesses when deciding on where to establish their headquarters, offices and other facilities. Stockholm has now built up a reputation as a high-tech hub with tech giants like Ericsson and new innovators like Spotify, calling the city home. Perhaps due to the strong 4G coverage as well as other access to technologies, having a reliable, future-proof pure fibre network has proven invaluable. So far, it has saved the local government over €250m in IT and telecoms services, delivering an estimated €1.8bn return on investment.