HELSINKI, Finland—Tele2, the Swedish mobile telecom headquartered in Stockholm, has reinforced its mobile virtual network operator (MVNO) strategy in Europe through the launch of MVNO services in the Netherlands. Tele2 is purchasing network capacity from the Dutch mobile operator Telfort, which is a subsidiary of mmO2 Group.
This move into the Netherlands is Tele2’s second MVNO deal in 2001. The company already offers services in Denmark using the Sonofon network. Sonofon is jointly owned by the Norwegian telecom Telenor (53.5 percent) and BellSouth (46.5 percent).
“Our goal is simple and direct. Tele2 plans to become a mobile virtual network operator in all markets where it has existing fixed-line operations. At present, we are present in 18 countries,” said Peter Scrope, Tele2’s chairman. The company also holds licenses for wireless local loop (WLL) services in 10 countries in Europe.
Under Tele2’s five-year development strategy, announced in October, the company aims to focus on the seven key markets outside Sweden where it is the second-largest fixed-line operator after the incumbent. These markets include the Netherlands, where MVNO operations are already in operation, France, Norway, Switzerland, Austria, Luxembourg and Liechtenstein.
“Our approach is to talk to the third or fourth mobile operator in each market, and then agreeing on an MVNO arrangement. The smaller operators tend to be more in favor of opening their network to a third party,” said Scrope.
According to Scrope, incumbent operators that were initially suspicious or against forming deals they felt would devalue their own service offerings, are now seeing the benefits of using MVNOs to get into other markets.
In 2000, Tele2 won a license to provide third-generation (3G) mobile services in Sweden, Finland, Norway and Liechtenstein. However, Scrope said he is not optimistic that 3G services can be delivered any time soon. He also questions demand for 3G, which he said “is five years too early.”
Tele2 is a wholly owned subsidiary of the Swedish communications and financial services group Kinnevik. The telecom company works closely with Millicom International Cellular (MIC), which also belongs to the Kinnevik stable of companies. Tele2 concentrates on Europe’s mature fixed and mobile markets. On the other hand, MIC provides wireless services in emerging markets, such as in Latin America and Africa.
