Europolitan, HI3G combine 3G-forces

date: 23rd January 2001, source: FT.com

Europolitan and HI3G are joining forces to build third-generation networks for mobile communications in Sweden.

Europolitan, controlled by Vodafone, and HI3G, 60-percent owned by Hong Kong-based Hutchison Whampoa and 40 percent by Sweden's Investor AB, are two of the four winners of Swedish 3G-licences on December 16 last year.

Europolitan and HI3G are the two groups with the heaviest investment plans and both groups won licences after committing to build new networks for more than 30 billion kronor.

The winners are allowed to work together on up to 70 percent of the coverage, and that is the level this agreement is aiming for. That means building one instead of two networks outside Sweden's major cities.

Second Swedish link-up

No financial details of the deal were given.

Europolitan, HI3G and the Orange-consortium, the third winner, were put under pressure a couple of weeks ago when Telia and Netcom, controlled by the Swedish business man Jan Stenbeck, in a surprising move joined forces.

Netcom had won the fourth 3G- licence, leaving Telia without one in a shock decision by the Swedish government. Telia is majority-owned by the Swedish state.

Due to their investments in 2G-networks, Telia and Netcom will have the lowest costs for building a third generation network. The two also have almost 80 percent of today's about six million Swedish mobile customers.

Although different partnerships were expected to keep investments down, the Telia/Netcom deal was unexpected.

Today only the Orange-consortium, which includes the broadband provider Bredbandsbolaget, the construction group Skanska among others, remains without a partner.

The Swedish license for the 3G net runs from now until 2015. The first parts of the networks will be rolled out in 2002, and will be ready by 2003.

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