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Network cooperation will save billions in Sweden - report
February 22, 2003
Telecoms operators planning to build WCDMA 3G networks in Sweden
would be able to save a total of five billion crowns ($590 million)
if they cooperate, according to a report published on Thursday.
The construction of Swedish 3G networks is expected to cost four
operators around 24 billion crowns, but this sum could be reduced
to 19 billion if rival firms work together, the report by the Chalmers
technical university showed.
The report, produced for the Swedish telecoms authority PTS, also
showed that the costs for each individual 3G operator were lower
in Sweden than in several other countries, despite tough rules which
expect the networks to cover remote areas.
"In Sweden the investment costs are estimated to be around 35 crowns
($4.13) per person and (per) year during a 20-year period. In Germany
the respective sum is around 55 crowns and in Britain more than
65 crowns," the PTS said in a press release.
According to rules binding the operators, the 3G networks have
to cover 8.86 million people, almost all of the inhabitants of Sweden,
a vast country which is sparsely populated outside its capital Stockholm
and a few other big cities.
The PTS lat year stressed that Europolitan, Tele2, Orange Sverige
and Hi3G face fines of up to SEK1bn from the Swedish PTS if they
fail to roll out Swedish services on time. "The fine will equal
the amount the company saved by not adhering to its undertaking",
said PTS lawyer Mikael Grap. He also said fines were likely to be
higher the greater the portion of the network that remains incomplete.
The operators maintain that the network will be completed on time,
meaning full 3G network coverage for 99 per cent of Sweden by January
1, 2004.
The full report can be view at
here (417KB)
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