TeliaSonera to build 4G – next generation mobile network

TeliaSonera has been awarded nationwide 4G frequencies to build a next generation super-fast mobile network in Sweden. This became clear when the Swedish Post and Telecom Agency, PTS, today announced the winners of the now concluded auction. The commercial launch will take place in 2010 and the network will provide customers with access speeds of more than 100 Mbits/second.

“We are naturally very pleased to receive this 4G licence,” says Håkan Dahlström, President of Mobility Services, TeliaSonera Sweden. “Above all, the licence is important for our customers, who will have access to even faster mobile broadband.”

The 4G network will be rolled out gradually in Sweden. A number of test periods with selected customers will be performed, and TeliaSonera estimates to be able to provide services over the new network to both consumer customers and businesses in 2010.

“The need for capacity and speed in the mobile networks is increasing all the time. I think we will see even more capacity-intensive entertainment and communication services in future, and I believe that the customers to a larger extent want to be able to use these services via a laptop or mobile phone, regardless of where they are,” says Håkan Dahlström.

The frequencies now received will enable TeliaSonera to build a mobile network that is more than 10 times faster than today’s networks. The license received is not subject to any conditions regarding the timetable of the network build-out or population coverage in Sweden.

“To begin with, we will build the network in densely populated areas, particularly in large cities,” says Håkan Dahlström. “We expect to have a population coverage of approximately 60 per cent in 2011.”

The license is valid for 15 years and the cost for 4 frequency blocks totaling 2 x 20 MHz in the 2.6 GHz band are SEK 563 million. The payment will be made to the Swedish Post and Telecom Agency in the second quarter of 2008.

In TeliaSonera´s Interim Report January-March 2008, the Group outlook for 2008 was reiterated and capital expenditure is expected to be around SEK 15 billion in 2008, however, the Swedish frequency auction price of SEK 563 million is not included in the expected capital expenditure figure.