Telia and NetCom to build joint UMTS network

Telia AB and its wholly owned subsidiary Telia Mobile AB have signed an agreement in principle with NetCom AB and its wholly owned subsidiary Tele2 AB to form a 50-50 joint venture company that will build and operate a network for the next generation of mobile telephony, UMTS ( Universal Mobile Telecommunications System). According to the terms of the agreement, Telia and Tele2 will have equal access to the UMTS license that was awarded to Tele2. The newly established network company aims to build a UMTS network providing nation-wide coverage in Sweden. In the market, Telia and Tele2 will continue to compete individually for mobile customers with their respective service offerings.
"Through creating a joint UMTS network revenues from the new infrastrucure will arise more rapidly. As a result Swedish mobile telephony customers are eligible to use each operator's services to lower prices than otherwise would be possible and Sweden will remain a world leading market within telecommunication." said Telia's President and CEO Marianne Nivert, and NetCom's President and CEO Lars-Johan Jarnheimer, in a joint statement.
Telia was one of the applicants that was not awarded a UMTS license by the Swedish National Post and Telecommunications Agency (PTS) on December 16. Telia has been evaluating several alternative courses of action since the PTS' allocation of licenses three weeks ago and finally chose to collaborate with NetCom and Tele2.
"Telia's substantial attraction lies in our strong infrastructure and distinct presence in the Swedish market, which have naturally been of value in our negotiations. In the market, Telia and Tele2 will continue to compete against each other for customers, just like before," commented Marianne Nivert.
Telia and NetCom AB intend to investigate the possibilities of establishing a similar joint venture in Norway. The final agreement is subject to approval by competition authorities and PTS. The agreement in principle is valid irrespective of the outcome of Telia's appeal with the county court system.
In connection with the newly reached agreement, Telia AB and NetCom AB will hold the following press conference today, January 8:
Press Conference
Time: 11:00 a.m.
Location: Norra Latin, Pelarsalen.
Attending will be Marianne Nivert, Telia's President and CEO, and
Lars-Johan Jarnheimer, NetCom's President and CEO.
Telia's Press Office, phone +46 8 713 58 30
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