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The Baltic Sea cable project approved by the European Commission

News 18.9.2014

The European Commission has approved the Finnish state’s capital investment on the project that will construct a direct high-speed telecommunications link between Finland and Central Europe. The procurement process has been started, and the construction work will begin next year.

Calls for bids for the Baltic Sea submarine cable project have been sent to contractor candidates. The decision on the contractor will be made in November, and the construction works will begin in 2015. The submarine cable project will be ready for service by late 2015 early 2016. A new company is responsible for carrying out the project under the ownership and operations of Corenet Oy , a limited liability company acquired by the Finnish state in November 2013 and used as an investment catalyst to boost building a strong digital cluster. The new company with rapid international expansion strategy is a significant actor in developing the speed and security of Finnish information networks.

"The new connection to continental Europe strengthens Finland’s position as a leading country in data centre investments. Building fast and safe international connections is a prerequisite for the growth of digital economy and industrial internet. This objective is also included in the Finnish government programme and a vital part of the Digital Europe strategy. Strengthening the backbone structures of digital economy is a precondition both for the emergence of new industry and for the development of our traditional industry. This enables the emergence of new business and employment opportunities", tells Ari-Jussi Knaapila, who is the Chairman of Board of Corenet and Group Ceo for the new company structure.

Building the submarine cable link is a critical project for the future of Finland and northern Europe since the need for connections has increased: Globally cloud services are expected to grow by an approximately 40 % yearly rate, and the telecommunications data volume is anticipated to be tripled by 2017.

Ongoing investor negotiations

"The submarine cable link connects Finland to European and global information networks enabling the emergence of strong cluster of cloud companies. Cyber safe and high-speed connections increase both the international interest in Finland and the Finnish competitiveness. We are discussing with several international players who are interested in the opportunities opened by the project", says Knaapila.

A fund raising to match the 20 million euro investment by the Finnish state with private investors has been initiated. The total financial package for the project realized as Public-Private Partnership is estimated to be in the level of 100 million euros. Finnish and international institutional and industrial investors, telecommunications operators, international cloud service and big data companies, as well as long-term infrastructure funds are invited to join the project and partnership in building a new digital economy.

More information and interview requests

Ari-Jussi Knaapila, chairman of the board, Corenet Ltd (interview requests: Kyösti Knuuttila, Manager, Pohjoisranta Burson-Marsteller, +358 50 5999 720 ,