PTS confirmed Orange has asked for 3G delay

date: August 8, 2002

The Swedish Post and Telecom Agency (PTS) confirmed Orange Sverige of Sweden has made a request for the amendment to the licence conditions for 3G UMTS development in Sweden.

Orange requested slower rate of network development to be completed by 31st December 2006 instead of the 31st December 2003. And also less population coverage of 8.3 million instead of 8.86 million.

PTS will deal with the matter and will make a decision during the autumn 2002.

PTS can decide to amend the licence conditions, but the Authority may also reject Orange's request. If Orange does not satisfy the licence conditions, the company may be ordered to satisfy the conditions subject to a default fine.

Orange’s reasons for the request for amendment to licence conditions:

- The start of the development of the UMTS network in Sweden was postponed as a consequence of Telia choosing to appeal against PTS’s decision regarding the allocation of licences.

- Collaboration between Telia and Tele2 means that, in practical terms, five UMTS operators (with two completely new actors) have been created in Sweden.

- The processing of building permits for masts has, in the majority of municipalities, proved in practice to be entirely dependent upon the coordination or sharing of masts between the various UMTS operators, which does not function in practice. The building permit processing procedure is long.

- The market for national roaming has reduced and does not function.

- The existing radio mast infrastructure is not available for shared use on fair and reasonable market terms.

- Technical equipment is not available for commercial use to the extent required in conjunction with the development of a completely new and comprehensive radio infrastructure.

- Demand for mobile data services has proved to be virtually non-existent.

- The financial market for telecommunications have experienced an incredible decline.

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