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PTS refuses license transfer from Orange

April 23, 2003

Swedish regulators Wednesday refused to allow Orange local unit to shift its 3G license to a subsidiary, saying they suspected the move would be a prelude to a sale of the subsidiary and the license.

Orange Sweden, which received its 3G license in late 2000, announced late last year that it would pull out of the country before ever launching services. It applied earlier this year to Sweden's Post and Telecoms Agency (PTS) for permission to shift its 3G license to a new subsidiary, GGG Licens AB.

Two other 3G license holders, Vodafone Sweden and Hi3G Access AB, asked the PTS to deny the request, saying they feared the maneuver could allow Orange to avoid contributing SEK3 billion to a company that the three operators formed to jointly build a 3G network in parts of Sweden.

Orange has said it plans to honor all of its financial obligations in Sweden.

Swedish law allows the PTS to block the transfer of the 3G license to a subsidiary.

Orange's options now include giving the license back to the Swedish government, Brandstroem said. The PTS wouldn't be able to block a sale of Orange Sweden that included the 3G license, although competition authorities might, he said.

 


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