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Regulator Rules on 3G in Sweden

25th October , 2005

Europe : PTS has decided that, in order to ensure that there are no adverse effects for the consumer, the 3G operators shall continue to use the same technology as previously for the 3G networks.

Inset is Katarina Kämpe, Deputy Director-General of Sweden's telecommunications regulator Post & Telestyrelsen ( PTS ).

The operators are also given an opportunity of developing their networks more cost efficiently. As the operators have not satisfied the population coverage that they have promised, PTS expects that during the spring of 2006 it will order the operators to complete the roll-out of the networks, subject to a fine for default.

PTS has today decided that the 3G operators Hi3G (3), Tele 2/Telia and Vodafone shall continue to roll-out 3G in Sweden without adverse effects for the consumer and with the same quality for everyone. In order to achieve this, the 3G operators must continue to use the same technology as previously, UMTS. Two of the operators have applied to use the alternative technology CDMA 450 for the remaining part of the roll-out.

PTS considers that it is currently not possible to cross UMTS with other technologies without this having adverse effects for the consumer. If these technologies are crossed, this would mean that the networks could not communicate completely with each other. Consumers using the different networks would consequently have restricted opportunities of using advanced mobile services, for instance video calls. Video calls are used within the medical care services, for instance.

Another advantage with UMTS is that the consumer can have one telephone, which can be used both in the 3G networks and the GSM networks. Telephones are currently not available that are capable of functioning with networks where UMTS and CDMA 450 are crossed, which means that the consumer would need two telephones.

However, the 3G operators have the opportunity of rolling-out the 3G networks more cost efficiently as a result of PTS reducing the requirement regarding signals from the base stations in certain areas where this can be done without having any adverse effects for the consumer. This relaxation means that the operators can reduce the number of base stations for the remaining roll-out by up to 25 per cent and thereby make savings.

PTS considers it important that the operators use their possibility to share masts, since co-location is beneficial both economically and regarding the natural and cultural environment. PTS has on several occasions proposed that the provisions on mast sharing should be reviewed, since the operators to very little extent has used the possibility to share masts and since PTS has limited possibilities to force the operators to share masts. By initiative of the Government, a commission of inquiry is now investigating this issue.

As the operators have not satisfied the population coverage of 8 860 000 people that they promised to achieve as of 31 December 2003, PTS expects that it will during the spring of 2006 order them, subject to a fine for default, to complete the roll-out of the 3G networks. The reason for the postponement of such an order until the spring results from the licence conditions needing to be adjusted owing to the reduction of the signal strength in the networks.

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