STOCKHOLM, Sweden-Telia, which recently was passed over for a Universal Mobile Telecommunications System license in Sweden, signed an agreement with NetCom and its Tele2 subsidiary to form a joint-venture company that will build and operate a UMTS network. Under terms of the agreement, both Telia and Tele2 will have equal access to the UMTS license awarded to Tele2.
The newly established network company aims to build a UMTS network providing nationwide coverage in Sweden. However, the two companies, which both currently operate second-generation networks, will continue to compete individually for mobile customers through their respective service offerings.
Sweden’s National Post and Telecommunication Agency did not award Telia a UMTS license in December, although it is the current 2G market leader. The agency cited a lack of technical feasibility among its reasons for not awarding Telia a license.
Each company will own 50 percent of the new venture.
Telia said last week it is appealing the Swedish telecom agency’s decision not to award it a UMTS license.
