Svalbard

The archipelago may have been first discovered by Norse explorers in the 12th century; the islands served as an international whaling base during the 17th and 18th centuries. Norway's sovereignty was internationally recognized by treaty in 1920, and five years later it officially took over the territory. In the 20th century coal mining started and today a Norwegian and a Russian company are still functioning. Travel between the settlements is accomplished with snowmobiles, aircraft, and boats.

Coal mining, tourism, and international research are Svalbard's major industries. Coal mining has historically been the dominant economic activity, and the Spitzbergen Treaty of 9 February 1920 gives the 45 countries that so far have ratified the treaty equal rights to exploit mineral deposits, subject to Norwegian regulation.

Although US, UK, Dutch, and Swedish coal companies have mined in the past, the only companies still engaging in this are Norwegian and Russian. Low coal prices have forced the Norwegian coal company, Store Norske Spitsbergen Kulkompani, to close one of its two mines and to considerably reduce the activity of the other.

Since the 1990s, the tourism and hospitality industry has grown rapidly, and Svalbard now receives 60,000 visitors annually. The settlements on Svalbard were established as company towns, and at their height in the 1950s, the Norwegian state-owned coal company supported nearly 1,000 jobs.

Today, only about 300 people work in the mining industry. Goods such as alcohol, tobacco, and vehicles, normally highly taxed on mainland Norway, are considerably cheaper in Svalbard in an effort by the Norwegian Government to entice more people to live on the Arctic archipelago. By law, Norway collects only enough taxes to pay for the needs of the local government; none of tax proceeds go to the central government.

general assessment:

modern, well-developed (2018)

domestic:

• the Svalbard Satellite Station - connected to the mainland via the Svalbard Undersea Cable System - is the only Arctic ground station that can see low-altitude, polar-orbiting satellites;
• it provides ground services to more satellites than any other facility in the world (2018)

international:

• country code - 47-790;
• the Svalbard Undersea Cable System is a twin communications cable that connects Svalbard to mainland Norway;
• the system is the sole telecommunications link to the archipelago (2019)

note: the COVID-19 outbreak is negatively impacting telecommunications production and supply chains globally; consumer spending on telecom devices and services has also slowed due to the pandemic's effect on economies worldwide;

overall progress towards improvements in all facets of the telecom industry - mobile, fixed-line, broadband, submarine cable and satellite - has moderated