Icelandic government agrees with 25 municipalities on nationwide fiber optic network completion by 2026

The Icelandic government has confirmed a significant agreement with 25 municipalities aimed at completing the nationwide fiber optic network by 2026. The deal, signed by ministers of infrastructure and innovation, is intended to enhance telecommunications security across the country, with a state commitment of approximately 340 million ISK.

This agreement marks the conclusion of a project designed to bolster community infrastructure, create job opportunities, and ensure improved connectivity throughout Iceland. According to the Minister of Higher Education, Industry, and Innovation, these efforts are part of one of the largest development initiatives in recent years.

Earlier this summer, an announcement highlighted a decision to accelerate the fiber optic rollout by two years, with the goal of increasing the proportion of connected households from 80% to 100%. Despite the ambitious goal, a recent survey revealed that telecommunications companies’ and public entities’ plans would not reach 4,438 addresses in 48 municipalities.

However, the Telecommunications Fund’s proposal led to offers that encompassed 4,251 addresses, achieving approximately 96% participation. Various factors contributed to the remaining households not being included, such as a small number of unconnected residences and some residents declining the service.

Overall, this agreement represents a major step forward in Iceland’s connectivity landscape, underscoring significant collaboration among residents, municipalities, telecommunications firms, and the government.