The way Icelanders communicate with each other and the rest of the world has evolved rapidly over the past century. At the heart of this transformation is Míla, a company responsible for the country’s extensive telecommunications backbone. Its story is entwined with Iceland’s own technological and regulatory journey, shaped by isolation, innovation and shifts in international policy.
A legacy rooted in early connections
Long before fibre-optic networks, Iceland’s first international connection began in 1906 with a single copper cable from Seyðisfjörður via the Faroe and Shetland Islands to Scotland. This primitive link, carrying about 120 words per minute under the best conditions, marked the country’s official entry into global telecommunications. Over the following decades, phone lines gradually reached even the remotest farms, with universal rural access completed by 1960. Notable milestones included the introduction of international telephony in 1935 and the country’s first digital telephone exchanges in the mid-1980s.
The first fibre-optic cable was installed between Reykjavík and Selfoss in 1985, dramatically increasing the volume of simultaneous calls. Soon after, the country began building a fibre ring following the national Route 1 (the Ring Road). This ring, constructed between 1989 and 1991 through cooperation with NATO and the Icelandic government, initially carried eight fibres; today, Míla owns five of those. The network continues to evolve, with most sections now upgraded or duplicated, providing robust connectivity even in Iceland’s challenging landscapes.
From state monopoly to network for the nation
For much of the 20th century, telecommunications and postal services operated together. This changed in 1998, when telephony was separated from postal operations. A major shift arrived in 2005 when the government sold its majority share in the telecom to private owners, then further divided operations: in 2007, the physical network infrastructure became Míla, while retail and other services remained under Síminn.
Míla’s current portfolio includes not just the historic copper network but also modern fibre-to-the-home infrastructure. Fibre optic lines now reach most towns and offer gigabit speeds to homes and businesses. In 2023, the company began deploying 10 Gbit/s services, and is migrating its operations entirely away from copper, aiming to close all DSL services by 2028.
As a wholesaler, Míla offers open access to its network for internet providers, mobile providers, and data centres. Iceland’s regulatory framework required more competition in telecommunications following European Economic Area agreements, which drove these separations. The national hringtenging (ring connection) remains essential for both redundancy and security, especially in a country where weather and vast distances could easily disrupt links.
Ownership shifted again in 2022, when Míla was sold to the French investment firm Ardian and some Icelandic pension funds. The company continues to develop 5G mobile service and high-speed fixed internet, contributing to a digital infrastructure that connects nearly every home, business and institution in the country.
Sources
- Wikipedia
- Wikipedia (Icelandic) in Icelandic
