3g-g
5th May 2005, 10:17 AM
It seems like Tele2 are making headway throughout Europe either in a MVNO formation or rolling out their own networks where possible. They're actively sourcing their own licences where possible and utilising their MVNO where a new network is not possible. Taken from the Budapest Business Journal (http://www.bbj.hu/?module=displaystory&story_id=247071&format=html) I've put the relevant Q&A's below.
Q: Tele2 and HTCC separately bid unsuccessfully for a 3G mobile license late last year. That could have led to Tele2 introducing standard 2G mobile services. Why was your bid rejected?
A: Our biggest problem was that there were no guarantees offered to the newcomer that it would be able to use national roaming. Without this the license was too risky economically, and hence less valuable from an economic standpoint.
Naturally, throughout the duration of the license we would have built a network, but to start up with no guarantees that you could really start up the operation, while paying a huge upfront fee, is economic nonsense.
We raised this question during the consultation period, but it didnt go through in the tender.
Q: When do you next expect the opportunity to offer mobile telephony in Hungary? Will it be possible to enter as a mobile virtual network operator (MVNO)? If so, when? Does the regulatory environment permit it?
A: In Europe, there is no MVNO legislation as such. Where it exists is in a commercial agreement between operators. Its in Tele2s interests to make it happen, but it really depends on a lot of factors, and I cant predict when it will happen.
If you look at the growth path of Tele2 in many countries, we always start with fixed-line and generate
a solid customer base, which we can then address with different products, like dial-up, ADSL [internet] and mobile later on. While were still building up the basis, we can start to look at offering additional products.
Q: Whats Tele2s strategy in mobile infrastructure development?
A: It depends on the country.
In Russia, we have 11 licenses spread all over the country, and there we have our own [regional] network. In Sweden, we have our own network and host an MVNO, as well as being an MVNO ourselves. In Luxembourg, we have our own network, while in Austria we are an MVNO.
We were granted a GSM/UMTS license in Croatia last year, and are now building our network. Wherever it makes economic sense, we investigate the possibility of having our own infrastructure.
Q: Meaning wherever there is a lack of competitors? How does Hungary size up?
A: In Hungary, the fixed telephony market is in a mature stage, and before Tele2 entered the market there was no visible competition in the residential segment.
I dont want to sound big-headed, but if Tele2 hadnt entered this market last year, Matáv could have done anything. Why wouldnt they have? If theres no competition, then the prices stay the same.
Q: But there has been some competition in the corporate segment.
A: That affects a tiny amount of people but, of course, a large amount of revenue. But Tele2 is in no way interested in the big corporate users.
Q: Do you see competition from your old employer, UPC, in telephony?
A: Looking at UPCs market, they have a limited footprint. Tele2 has much larger market potential with every available fixed line.
In the short term, I think we can coexist on the market. Long-term, voice over IP is a technology that people are putting big hopes in.
There are some barriers to change in the customers mind. I strongly believe that all technologies will live together, but with changing market shares. I dont agree with those who say fixed-line telephony will not exist in ten years. There will be new forms of technology that we havent even dreamed of yet, which will peacefully coexist.
People will always want to call cheaper, and Tele2 is there to satisfy this need. We never aim to be the highest technology company; we aim for the cheapest per-minute fee. For the customer, it doesnt matter whats behind the handset.
Q: Tele2 and HTCC separately bid unsuccessfully for a 3G mobile license late last year. That could have led to Tele2 introducing standard 2G mobile services. Why was your bid rejected?
A: Our biggest problem was that there were no guarantees offered to the newcomer that it would be able to use national roaming. Without this the license was too risky economically, and hence less valuable from an economic standpoint.
Naturally, throughout the duration of the license we would have built a network, but to start up with no guarantees that you could really start up the operation, while paying a huge upfront fee, is economic nonsense.
We raised this question during the consultation period, but it didnt go through in the tender.
Q: When do you next expect the opportunity to offer mobile telephony in Hungary? Will it be possible to enter as a mobile virtual network operator (MVNO)? If so, when? Does the regulatory environment permit it?
A: In Europe, there is no MVNO legislation as such. Where it exists is in a commercial agreement between operators. Its in Tele2s interests to make it happen, but it really depends on a lot of factors, and I cant predict when it will happen.
If you look at the growth path of Tele2 in many countries, we always start with fixed-line and generate
a solid customer base, which we can then address with different products, like dial-up, ADSL [internet] and mobile later on. While were still building up the basis, we can start to look at offering additional products.
Q: Whats Tele2s strategy in mobile infrastructure development?
A: It depends on the country.
In Russia, we have 11 licenses spread all over the country, and there we have our own [regional] network. In Sweden, we have our own network and host an MVNO, as well as being an MVNO ourselves. In Luxembourg, we have our own network, while in Austria we are an MVNO.
We were granted a GSM/UMTS license in Croatia last year, and are now building our network. Wherever it makes economic sense, we investigate the possibility of having our own infrastructure.
Q: Meaning wherever there is a lack of competitors? How does Hungary size up?
A: In Hungary, the fixed telephony market is in a mature stage, and before Tele2 entered the market there was no visible competition in the residential segment.
I dont want to sound big-headed, but if Tele2 hadnt entered this market last year, Matáv could have done anything. Why wouldnt they have? If theres no competition, then the prices stay the same.
Q: But there has been some competition in the corporate segment.
A: That affects a tiny amount of people but, of course, a large amount of revenue. But Tele2 is in no way interested in the big corporate users.
Q: Do you see competition from your old employer, UPC, in telephony?
A: Looking at UPCs market, they have a limited footprint. Tele2 has much larger market potential with every available fixed line.
In the short term, I think we can coexist on the market. Long-term, voice over IP is a technology that people are putting big hopes in.
There are some barriers to change in the customers mind. I strongly believe that all technologies will live together, but with changing market shares. I dont agree with those who say fixed-line telephony will not exist in ten years. There will be new forms of technology that we havent even dreamed of yet, which will peacefully coexist.
People will always want to call cheaper, and Tele2 is there to satisfy this need. We never aim to be the highest technology company; we aim for the cheapest per-minute fee. For the customer, it doesnt matter whats behind the handset.