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Financial crisis gives Swedish broadband company a lift
 1.5 billion Euros of EU support for broadband development, aiming to reach full broadband coverage by 2010
 
The EU commission has decided to earmark 1.5 billion Euros to the development of open broadband networks in sparsely populated areas throughout Europe as part of the 200 billion Euros support package which was laid out by the commission in December, playing right into the hands of Swedish company Netadmin System.
 
Netadmin System develops operations and business processes automation systems for open broadband networks, a prerequisite for operating the new broadband networks about to sprout in Europe.
 
Netadmin System started a successful campaign on the European market last year and has already published more than a dozen major deals on multiple important markets.
 
“The decision made by the EU commission really plays right into our hands and will create a major growth market for us,” said Peter Lövgren, CEO of Netadmin System.
 
Background

The EU commission laid out a 200 billion Euros recovery program to stimulate European economy and prevent further spreading of the global financial crisis in December. The goal is to increase demand, create new jobs and recreate faith in the market. The plan will help long-term stimulation as well.
 
170 of the 200 billion support euros will be activated by EU member countries, and the remaining 30 will be taken from the EU budget through the European Investment Bank. Aggregate costs will account for 1.5 percent of the GNP of all EU nations. The program will run for a maximum of two years, 2009-2010.
 
On January 28th, the commission made the decision to use 1.5 billion of these Euros to develop and upgrade broadband networks in sparsely populated areas.
 
Broadband is an important prerequisite when creating growth and jobs in the EU, which is why the commission is taking measures to develop broadband use within the EU. The commissioners are suggesting measures in the areas of technical development, competition and regional support, and affirm that broadband plays an important role in the creation and support of a vivid countryside.
 
“Broadband access is a prerequisite for e-commerce and the creation of growth and jobs. Competition and open markets are definitely the best ways to extend broadband use in the EU,“ said Peter Lövgren.

 
Sweden in the frontline

Despite the fast broadband development lately, there are many less developed areas to which broadband use has not yet reached, and it remains to increase broadband use in such areas.
 
Sweden, however, is being named in an EU commission breakdown as the country with the best developed broadband networks, making it the most suited to reap broadband rewards in the future. The EU member nation rankings not only account for the number of existing broadband lines in relation to population numbers – where Sweden only reaches fourth – but also for how fast average broadband connections are, for countryside development and for internal market competition. Another factor is the IT knowledge of the general population. Second on the list is the Netherlands.
 
“Sweden and the Netherlands have advantageous socio-economic conditions and users who are inclined to take advantage of advanced services. The competitive environment allows for reasonable pricing and high speeds,” said Peter Lövgren.
 
Poland, Romania, Cyprus and Bulgaria come in last in the rankings.
 
The EU commission also wants to profile Europe before the transition to next-generation internet, or “Web 3.0” as it’s also called. As internet services for areas such as business and entertainment grow increasingly advanced, and as the margin between wireless and wired internet is being erased, the importance of being in the front edge of technology increases for the EU.