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3G rollout problems challenge Swedish government

date: 14th March 2001, source by: Total Telecom

The Swedish government's ambitious plan to ensure that all homes have access to a 3rd generation mobile phone network by 2003 has run into trouble.

Key players, including Skanska Telecom, complain that the situation is now "chaotic," with no moves made to acquire the land needed for the infrastructure or to set about forming a blueprint for the project.

Operators are concerned that the Ministry of Trade and Industry (MTI) has been slow in producing a blueprint, while the MTI has accused the operators of sluggishness in purchasing land to house masts and base stations. The MTI asserts that operators already have a clear blueprint, and the onus is on them to move the project forward.

The MTI disputes the contention that it is dragging its heels. "We are constantly discussing financing, infrastructure and technology issues with operators. There is only so much the MTI can do. We want to meet deadlines, and we are making progress. I still believe we can meet these deadlines if all parties involved pull their weight," said the Minister for Trade and Industry, Bjorn Rosengren.

Skanska, a company that will play a key role in building the physical networks, contends that the situation is fast becoming chaotic. The company denies that any conflict exists between operators, but argues that the MTI needs to play a strong leadership role.

"When one builds a house the owner buys a site, the architect designs the house, and a construction firm builds it. What we currently lack is the land and a blueprint. The operating groups have not completed detailed plans to allow them to sign contracts with construction companies," said Antti Kuivalainen, managing director of Skanska Telecom Networks.

The four groups that have secured 3G licenses plan to construct some 40,000 to 60,000 radio base stations nationwide at a combined cost of 50 billion Swedish krona (US$6 billion). The first phase of the rollout is scheduled to be ready by January 2002.

"It is up to the operating groups to accelerate the pace of progress. If the first phase is to be ready by January 2002, construction must start now. But the prospect of this happening is extremely slim," said Kuivalainen.

Skanska's fears are echoed by Europolitan Vodafone and Orange, both of which anticipate delays in the establishment of a Swedish 3G network.

Sweden's Post and Telecom Authority (PTS) awarded four UMTS licenses in December to:

- Europolitan, part of U.K.-based Vodafone;

- Orange consortium, comprising the mobile arm of France Telecom, Bredbandsbolaget, Framtidsfabriken, Skanska, NTL and Norwegian broadcasting company Schibsted;

- Tele2, the cellular arm of Netcom, which bid together with Societe Europeene de Communication

- Hi3G Access group, comprising Investor and Hutchison Whampoa.

Swedish incumbent Telia failed to win a license, but has since linked up with Tele2 to jointly build a 3G infrastructure.

 

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