Nordic mobile strategy remains firm
Telia is analysing its UMTS application and appealing the decision made by the PTS - In the following text, Telia provides background information to explain its view of the PTS' refusal to grant Telia a UMTS licence and the actions that Telia has taken during the application period and since the PTS' announcement on December 16. An identical text was distributed today to all managers of the Telia Group.
Telia submitted its UMTS licence application to the Swedish National Post and Telecom Agency (PTS) on September 1 this year. After this date, Telia has answered the PTS' written and oral questions about the content of the application. The PTS did not indicate on any occasion that there might be a problem with the quality of the application.
The announcement made by the PTS on Saturday, December 16, was therefore a surprise, especially because Telia was refused a licence because of alleged "deficiencies in its technical implementation". Telia's application was consequently put to the side without complete evaluation.
In its decision, the PTS not only eliminated Telia but also several other operators with broad experience, competence and financial strength, preventing them from participating in the future rollout of UMTS networks in Sweden. The other operators included Deutsche Telekom, Sonera, Telenordia and Telefónica.
Immediately after the PTS' announcement, Telia formed four task forces that have been intensively working in a number of prioritised areas. These task forces have made a preliminary analysis of Telia's UMTS licence application and the PTS' grounds for not allocating a licence to Telia.
A comprehensive analysis has been made of the criteria that will impact Telia as a consequence of the PTS' solution. Analyses have been performed in the following four areas:
- The consequences for Telia Mobile's basic business strategy.
- The consequences and alternative action plans for the Swedish market.
- An analysis of Telia's licence application and the PTS' decision (two independent teams performed the analysis, of which one had not previously worked with the licence application).
- The strategy for the legal process that is expected when Telia appeals the PTS' decision.
In the results of the analysis, a number of important arguments have been strengthened and will provide the basis for Telia's appeal, among other measures:
- In Telia's application, Telia committed itself to provide UMTS coverage nation-wide in Sweden.
- Telia has used the same calculation model as the PTS (in the PTS' reasoning, it is alleged that Telia has applied its own model).
- Telia's proposed approach is the most cost-effective and will result in the lowest price for customers.
The analyses also confirmed that Telia's strategy for the Nordic region remains firm. Among other measures, the strategies for mobile operations with be focused on more sharply, based on the following orientation:
- Telia will continue to strengthen its position as the leading mobile operator in the Nordic region.
- Telia will offer mobile broadband services, including UMTS, at the same time as its competitors.
- Telia will utilise several alternative action plans to fulfil its strategy.
- Telia will appeal the PTS' licence decision.
Work will continue intensively prior to the appeal
The task forces will now finalise their analyses. Telia's Group Executive Management will then decide on its strategy for the appeal. The appeal will be made the first week in January.
While the appeal is being prepared, Telia cannot provide any more details about the task forces' work. When their reports are finalised, Telia will present the results at a press conference.
Telia's Press Office, phone +46 8 713 58 30.
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