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Network Outsourcing may be Benefit Says Head of Telia

date: September 17, 2001

Kenneth Karlberg, head of the biggest Nordic telecoms operator Telia said that profitability would benefit from efficiency measures, such as the outsourcing of the running of the 3G mobile telephony network, which Telia was building together with its competitor Tele2 and which will be operational from the start of next year.

"Because we are going to share the network with our competitors, network access and quality will not be a point of differentiation between operators,'' Karlberg said. "It will be the services offered. Therefore it makes sense to outsource the running and maintenance of the network,'' he added

He predicted that network outsourcing would allow the Telia to make substantial savings.

In July, Telia's wholy-owned Norwegian subsidiary, NetCom ASA, has completed the first UMTS phone call to be made in the new network. The call was carried out in cooperation with Siemens.

Last November, Netcom won one of four lisences to build UMTS networks in Norway. The new network, will be incrementally opened in certain parts of the country starting in December this year.

 



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This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

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