STOCKHOLM, Sweden-Tele2 AB has given up on the Finnish market, where it has operated a mobile virtual network operator service since 2003, due to competitive and regulatory challenges. The carrier, which holds a third-generation license in the country, also will end its fixed telephony service in Finland
The carrier will stop marketing all telephony services in Finland, and the administration of Tele2’s existing Finnish customers will be transferred to Sweden.
“Given the current market environment, we see better opportunities elsewhere,” said Lars-Johan Jarnheimer, chief executive officer of Tele2. “It is of course unfortunate that we need to end our operations in Finland, which began in 2000. However, we still are not able, for example, to sell local calls there. Given this situation, we have decided to end any further marketing investments in Finland.”
In 2003, Tele2 acquired all the shares of Finnish 3G Suomen 3G Oy, which held one of four 3G licenses in Finland, for $9.1 million. The carrier had built out some 3G coverage in Finland.
3G licenses in Finland were awarded through a “beauty contest,” and the prices paid were much lower than in other European countries where auctions were held.
