Ericsson may not deliver base-stations on time

date: November 26, 2001

Tele2, Sweden's second biggest operator believes telecoms equipment maker Ericsson may have problems delivering base stations for its 3G network in time next year, Tele2's chief executive said

Tele2 and Telia formed a joint venture to build the WCDMA 3G mobile network in Sweden to share the $1.3 billion require cost.

The consortium has chosen Ericsson, the world's biggest producer of mobile networks and third biggest handset supplier, as the sole supplier of the equipment.

Under the terms of the Swedish licenses for 3G telephony, which offers video on handsets, a limited 3G network has to be up and running from the start of next year and has to cover the whole of Sweden by the end of 2003.

"We have to install roughly 25 to 30 antennas a day to reach our target. If they (Ericsson) can't deliver, if they don't deliver on time, then each day will be very hard to compensate for before the end of 2002," said.Jarnheimer, CEO of Tele2

"I don't know any industry that has done that without any hiccups."

In accordance the final agreement between Tele2 and Telia gives equal access to the UMTS license awarded to Tele2. Each party obtains a 50 % ownership in the joint venture. The sole objective of the joint venture is to create a UMTS network supporting full coverage of Sweden. On the service side, the competition between Tele2 and Telia remains.

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