HELSINKI, Finland—Skanova, the wholesale division of the Swedish state telecom Telia, signed a letter of understanding to sell network capacity to Svenska UMTS-net, a company that is building a Universal Mobile Telecommunications System (UMTS) system for Telia and the Sweden-based European mobile telephone operator Tele2.
Skanova’s management described the deal as “an agreement on call.” Svenska UMTS-net was formed in 2001 as a joint venture between Telia and Tele2. The company is responsible for the construction of a shared third-generation (3G) network for the two operators in Sweden.
Svenska UMTS is on course to finalize construction of the network by year-end 2003. By this stage, the network is expected to have reached between 95 percent and 100 percent of the Swedish population.
During the fourth quarter of 2001, Skanova secured a deal from 3G Infrastructure Services (3GIS) to provide 3G backbone capacity. 3GIS is building Hi3G’s and Europolitan Vodafone’s shared network.
In typical Scandinavian fashion, Svenska UMTS-net chose to award its infrastructure supply contract to Ericsson. 3GIS is expected to name Nokia as its main supplier.
Orange, the other Swedish UMTS license holder, is engaged in talks to join the 3GIS partnership. Telia failed to win a UMTS license during the 2001 licensing auction and partnered with Tele2 to take advantage of its rival’s license.
