The Finnish regional network operator PyhäNet plans to double its customer base within five years, driven by public funding and a targeted rural rollout strategy. The company, based in central Finland, focuses on connecting sparsely populated areas that are underserved by national operators. In this TP:Talks we are joined by Eetu Pekola, CEO of PyhäNet and vice-president of the Finnish Regional Networks Association. PyhäNet is owned by the municipality of Pyhäjärvi and two neighboring towns, and currently serves approximately 2,600 paying customers through a 3,000-kilometer trench network. "Our ambition is to grow that to 5,200 customers in the coming years," says CEO Eetu Pekola. "But due to the depopulation of rural areas, we also need to constantly look for new regions to expand into."
Public funding essential for rural deployment
Rolling out fiber in Finland’s vast and rocky terrain is expensive. Pekola estimates an average cost of EUR 3,000 per customer connection. To offset this, PyhäNet relies on public funding for projects in less commercially viable areas. "We receive up to 65 percent of the project cost through government and EU grants, provided that at least 25 percent of the households in the area pre-register," Pekola explains.
Pre-registration is a critical part of the strategy. "During rollout, we connect those who register first at no extra cost. Those who come later may face higher fees, as we need to bring in digging equipment again," he says. The company has also invested in a chain trencher to reduce costs for latecomers.
Network sharing and competitive pricing
Despite being a small player, PyhäNet operates under Finland’s open access regulation. "By law, all fiber owners must offer access to others. In practice, we mostly act as the incumbent on our own network, but we are open to renting out capacity," Pekola notes. Pricing remains competitive. A 100 Mbps connection costs EUR 40 per month, and 1 Gbps is offered for EUR 60. Additional IPTV services are available for a surcharge. "We recently removed the pre-registration fee to make it easier for customers to sign up," Pekola adds.
Challenges of rural demographics and seasonality
One of PyhäNet’s unique challenges is the declining rural population. "We estimate that 10 to 20 percent of our connected homes will become unoccupied in a few years due to aging residents moving or passing away," Pekola says. This trend forces the company to expand strategically to maintain growth. Seasonal factors also influence operations. "Our rollout window is from May to October. In winter, frozen soil makes digging expensive and inefficient. Even if we start in winter, we must return in spring for restoration," he explains.
Vision for growth and consolidation
Finland has around 80 small fiber network operators, most with fewer than 4,000 customers. While some face operational limits, PyhäNet aims to consolidate. "We don’t aggressively pursue acquisitions, but if smaller operators struggle to continue, we are ready to help. We have the resources and experience to support them," says Pekola. As vice president of the Finnish Regional Network Association, Pekola advocates for cooperation and system efficiency. "We are a small team—only five employees—so we rely on good processes and systems to manage rollouts, monitor progress, and respond to customer inquiries effectively."
Fiber enables remote working, but uptake is gradual
Pekola observes a modest trend of remote workers moving to rural areas, enabled by reliable fiber connections. "We already have customers who work remotely for companies abroad. It’s not yet widespread, but fiber makes it possible," he notes. Finland's national goal is to provide 100 Mbps connectivity to all households by the end of this year, via any technology—fiber, DOCSIS, or fixed wireless. Pekola acknowledges that fiber may not reach every home, especially in remote regions, but says PyhäNet is committed to covering as much as possible: "We aim to serve areas where national operators won’t go. That’s our mission."
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