HELSINKI, Finland-The shortage of UMTS terminals in Finland’s retail market is seriously hindering the construction of third-generation (3G) mobile networks. 3G license holders are warning that delays can be expected in the rollout of 3G networks.
“While the situation in Finland has not reached a complete standstill, there is no great enthusiasm on the part of 3G license holders to build expansive networks before commercial operations commence,” said Mika Matturi, vice president of Sonera’s Mobile Operations division.
Sonera is the only Finnish mobile operator to have set a date for the launch of commercial services on its 3G network. This will happen on 26 September, the same day Nokia is scheduled to launch its new and long-awaited 3G handsets.
Sony Ericsson is expected to release its new UMTS handsets in October or November. Nokia expects that it will be able to supply its new UMTS terminals to the wider market during the first half of 2003.
It is unclear how seriously the lack of UMTS terminals will impact the 3G rollout delays in Finland. Sonera believes the delay could be as short as three months, while other telecom companies, including Radiolinja, are forecasting a four- to six-month postponement.
Suomen 3G, owned by local and regional Finnish telephone companies, has opened pilot networks in 11 locations, most recently in Raahe and Ylivieska.
“The real commercial exploitation of the new UMTS networks will not happen before 2004 or 2005. New networks will be built and rolled out as demand requires,” said Matturi.
Unlike Sweden, regulators in Finland have not set a strict timetable for construction and rollout of 3G networks. One element working in Finland’s favor is that few objections have been lodged protesting the building of masts.
Four companies, including Sonera, Suomen 3G, Radiolinja and Telia, hold 3G licenses in Finland. Licenses were obtained via a “beauty contest,” unlike in Germany and the United Kingdom, which held costly auctions.
In the wake of Telia’s bid to take over Sonera, Telia has confirmed its intention to relinquish its Finnish 3G license. The Ministry of Trade & Industry must now decide whether to offer the license to an existing license holder or arrange a new competition.
