Information Technology in Sweden   
 
 
 Telecommunications Infrastructure 
 
 
  

    Introduction   

    Sweden is one of the world's leading nations for the production of telecommunications equipment as well as a leader in telecommunications infrastructure. In particular, the country is one of several Scandinavian countries paving the path for the rest of Europe in wireless technologies.   

    Teledensity   

    There are approximately 68 telephone lines per inhabitant in Sweden, which makes Sweden, the world's most telephone intensive country.  Almost  99% of the country has access to a telephone.  In addition, the country is one of the world's largest users of wireless services, with more than 24 subscriptions per 100 inhabitants.   

    Wireless Services   

    Swedish cellular phone users constitute approximately 18.8% of the countries telephone users, compared to an average of only 5.6 % for the rest of Europe.  This is due in large part to the geography of the country, which favors a need for the ability to communicate from remote and isolated locations.   

    Infrastructure   

    Sweden has exceptional domestic and international telecommunications facilities.  Domestically, the country relies upon coaxial and multiconductor cable to carry most of the nation's voice traffic.  In addition, a parallel microwave radio relay network carries additional channels.  Internationally, the country is connected to Europe and the rest of the world by 5 submarine coaxial cables and 3 satellite earth stations.  Satellite services include the following:    

     
    Satellite Service
    Service Coverage
    Intelsat Atlantic Ocean region 
    Eutelsat European continent region
    Inmarsat Atlantic and Indian Ocean regions
      
    Sweden has 5 major AM broadcast stations, and 360 FM broadcast stations (mostly repeaters).  It is estimated that there are 7.272 million radios.  In addition, there are 880 television bradcast stations (mostly repeaters) and approximately 3.5 million televisions. (Source: CIA World factbook) 

    Telecommunications Marketplace 
     
    The Swedish telecommunications market is one of the most open in the world.  There are no restrictions protecting Swedish interests or restricting foreign corporations from establishing themselves in Sweden. It is a mature, well developed and demanding market with a high per capita rate of telephone ownership.

    According to the British telephone supervisory authority, Oftel, costs for business telephony, ISDN, mobile telephony, calling cards and international telephony in Sweden are among the lowest in the world. (Source: ITA)

    Major Providers and Producers   
     
    By far, the largest telecommunications service provider  in the Swedish marketplace is Telia, the former government owned National Post Telegraph and Telephone (PTT) operation until deregulation in 1993. 

    Sweden is also the home of one of the leading telecommunications companies in the world, Ericsson, a supplier of equipment for telecommunications systems and related terminals. The Company produces advanced systems and products for wired and mobile communications in public and private networks.  Ericsson had 100,774 employees at year-end 1997. Net sales amounted to SEK 167,740 million and order bookings to SEK 179,770 million in 1997.  

    The Company's history goes back to 1876, when Lars Magnus Ericsson opened a repair shop for telegraph equipment. He soon realized that there was a need for improvements in the telephones then available, and therefore began manufacturing them himself. In 1892, Ericsson launched its first major international product - a table-top device with a separate hand-held microphone. Since then, the Company has been one of the world's leading manufacturers of advanced telephone equipment, with a very large percentage of sales outside Sweden.  Ericsson is developing telecommunications solutions for customers in more than 130 countries.  (Source: Ericsson

    Telecommunications Equipment  
     
    The dominating company on the Swedish market is Ericsson. Others are Nokia, Motorola, Lucent, NorTel, Alcatel, Siemens.  Internet is the segment, among all categories, which is showing the largest growth, with a 300% increase from last year. There are 500 companies involved in the Internet market in Sweden with annual sales of USD 145 million. 
     
    Telecommunications equipment is an important component of the Swedish gross domestic product.  In fact, the industry which has the largest proportion of national production is communications equipment, where radio communication equipment are responsible for 38% and telecommunications for 25% of the nations manufacturing production. (Source: Swedish Trade Council

    Swedish made telecom  products with good sales prospects are dual band (GSM/DCS 1800) phones and accessories, cordless phones, high capacity routers, and broadband communications networks for high speed data.  
    (Source: ITA
     
     

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This site was developed for the Impacts of National Information Technology Environments on Business course at the Kogod School of Business, American University, Washington, DC.
For problems or questions regarding this site please e-mail the author: jeffrey_walpole@sra.com.  
 
This page was last updated: December 14, 1998
  
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