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Swedish 3G-license holder takes on second license

STOCKHOLM, Sweden-Swedish company Svenska UMTS-nat AB, jointly owned by TeliaSonera and Tele2, has agreed to purchase the fourth third-generation license in Sweden from Orange Sverige. Svenska already owns a UMTS license in Sweden, and TeliaSonera and Tele2said the new license will not change the cooperation.

The two operators agreed to partner for UMTS services after TeliaSonera did not receive a 3G license in the country’s “beauty contest” in 2000 for UMTS licenses, while Tele2 did receive a license. Orange previously announced it did not plan to roll out 3G services in Sweden.

To comply with the terms of the new license, Svenska will expand its network in Sweden’s metropolitan areas, and the cost for the license, which was not disclosed, and the extra buildout costs will be covered by its existing loan facility.

“We believe the mobile Internet-e-mail and Web surfing from mobile phones-is going to go over big with our customers,” said Marie Ehrling, chief executive officer of TeliaSonera Sweden. “And when it does, we will need the extra capacity that this license gives us.”

Closing of the deal is contingent on the approval of the transaction by the authorities and by the boards of the involved companies.

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