No amended 3G conditions for HI3G or the Tele2/TeliaSonera company Swedish UMTS-licens AB

14/05/2003

The National Post and Telecom Agency (PTS) has today decided to reject HI3G’s and Svenska UMTS-licens’ applications for amended 3G conditions. Svenska UMTS-licens is owned by Tele2 and TeliaSonera.

PTS considers that there is a risk that the operators will not satisfy the requirements for coverage on 31 December 2003. However, there is no reason to give the operators a general extension of the period for the rollout, i.e. even in municipalities where the operators have or will receive building permits. The licence conditions do not specify the geographical areas in which there should be coverage. This is one of the reasons for there not being cause to allow an extension already at this time in some municipalities. Another reason is that the operators to some extent can achieve coverage by utilising existing buildings and masts if they do not receive a building permit in a municipality.

In the beginning of 2004, PTS will investigate whether the operators’ rollout satisfies the requirements for coverage. If it then transpires that the operators have exhausted the possibilities of covering certain areas, the authority may not impose a default fine on the operators to cover these areas. PTS may not impose a default fine if the operators do not have any possibility of complying with the order.

PTS also considers that it must already have been clear for the operators before they applied for 3G licences that 3G technology was in a developmental phase and that there may thereby be certain inadequacies. However, in the assessment of PTS, the technical equipment required to satisfy the licence conditions exists.

HI3G applied in November 2002 and Svenska UMTS-licens in April 2003 for an amendment of the 3G licence conditions. HI3G wanted the time when the coverage requirements should be satisfied to be postponed by one year, from 31 December 2003 to 31 December 2004. Svenska UMTS-licens applied for a postponement of two years, until 31 December 2005.

As reasons, HI3G stated that it first had not received building permits for 3G masts in some municipalities, second that it had taken over a year to arrange a contract for mast sharing with Tele2 and TeliaSonera. Svenska UMTS-licens was of the view in its application among other things that the processing by the municipalities of building permits took longer than could have been anticipated and also that the technical problems and inadequacies with 3G telephones mean that the market is not yet mature.

Decision Hi3G (pdf 254 kB)
Decision SULAB (pdf 179 kB)

Contact person Ann-Marie Engvall, Director of the Telecom Department, tel. +46 8-678 56 58.

The Post and Telecom Agency works to ensure that everyone in Sweden should have access to efficient, fairly priced and secure communications within the telecommunications, IT, radio and postal sectors.