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Swedish Orange to hand back 3G license?

November 19, 2002

Orange will most likely hand back its 3G license to the Swedish telecom authorities, according by recent reports. Its owner France Telecom may come to the conclusion that Orange might not attract enough customers in Sweden to justify continued investment. Orange has denied the stories.

The operator has spent an estimated €87 million on 3G networks in Sweden.

Operators in Sweden are struggling to meet the tough rollout deadline set by the telecom authorities. Orange had previously applied for an extension to the rollout date, but the application was rejected. The original rollout deadline under the terms of the 3G license was end 2003 with 99% coverage of the population. Orange wanted to move the deadline back to 2006. Some analysts believe that the troubled France Telecom may prefer to cut its losses and withdraw its offspring from the market.

Rival operator Europolitan, owned by Vodafone, have also handed an application for extending the rollout deadline. If the authorities accept the application, Orange may well decide to challenge the decision if it does not get an extension.

 


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