Telecommunications infrastructure is the backbone of the digital economy. Advanced network technologies that support high capacity, security and resilience have brought and will continue to bring substantial benefits to Danish consumers and businesses. While Denmark currently fares well in international comparisons regarding the rollout and take-up of high-speed fixed and mobile connectivity, more remains to be done as the sector undergoes important transformation. Policymakers need to consider how best to fine-tune policy conditions to empower further competitiveness in this sector and thus achieve enhanced and future-proof digital infrastructure.
In this study, we first assess the economic contribution supported by the operations and investments of the telecommunications sector to the Danish economy. Secondly, we investigate how the well-developed digital infrastructure enables wider socio-economic benefits for the Danish economy and society. Thirdly, we examine why further investments are required and assess how the continued development of the digital infrastructure will continue to enable wider benefits for the economy and society. Lastly, we discuss how policymakers can support continued investment while achieving other policy objectives to ensure that future benefits materialise.
The telecommunications sector plays a vital role in the functioning of society and contributed DKK 45.1 billion to the Danish economy through its operations and investments (equivalent to 1.6 per cent of Danish GDP). Futureproof digital infrastructure also boosts productivity across the economy and enables additional economic gains, estimated to be in the range of 11 to 17 billion in GDP annually between 2014 and 2023 (equivalent to up to DKK 2,800 per citizen).
The telecommunications sector generates wider socio-economic benefits by enabling the green transition and mitigating potentially substantial costs related to cyber breakdown.
However, continued investments are essential to make digital infrastructure future-proof. This includes further deployment and upgrading of fibre and mobile networks to meet increasing data needs, provide sufficient capacity, latency, resilience, and security for innovative technologies, support the green transition, and ensure network resilience while mitigating growing threats to cyber security and digital fraud.
Operators in Denmark may face challenges that weaken their ability and incentive to invest due to administrative barriers, low return on investments in digital infrastructure and lack of scale.
The report was commissioned by the Danish Chamber of Commerce (Dansk Erhverv).
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