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Swedish Government Mulls 3G Delay

December 19, 2002 - source: BWCS

The Swedish Posts & Telecom Agency (PTS) appears to be considering a u-turn on the issue of delaying UMTS network rollouts. According to the Swedish daily newspaper Svenska Dagbladet the country’s communications minister, Ulrica Messing has said that she is willing to discuss a slower 3G rollout. However Messing said that there would be no compromise on the provision of nationwide 3G coverage.

Back in October the PTS threw out an appeal by Orange and Vodafone for a two or three-year extension to the existing 3G national coverage deadline. Although the Swedish government did not charge high 3G licence fees when it sold off four franchises in December 2000, it did set stringent network rollout conditions requiring nationwide 3G coverage by the end of 2003. Orange and Vodafone have claimed that slow processing of planning applications for mast erections by local municipal authorities is pushing back their rollout schedules.

Last month it was reported that Orange was considering pulling out of Sweden all together due to the government’s unwillingness to compromise on the coverage deadlines. Orange has teamed up with Vodafone’s subsidiary Europolitan and Hutchison-basked Hi3G to provide UMTS coverage in rural areas of Sweden. Should Orange be forced to withdraw from the market it could have a knock-on effect for the three-way venture, 3G Infrastructure Services AB.

Despite the problems encountered by Vodafone and Orange, Sweden’s fourth 3G licensee, Tele2 is reported to be on target to complete its 3G rollout on schedule. Tele2 has teamed up with national telco Telia in a 50/50 UMTS joint venture called Svenska UMTS-nät AB. In September the two companies secured a SEK11 billion (€1.2 billion) revolving credit facility to fund the rollout of their Swedish 3G network.

 


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