Tele2 Acquires 3G Network Operator

Tele2 says that it has acquired the remaining shares in Finnish 3G Suomen 3G Oy, which holds one of four 3G licenses in Finland. Tele2 previously owned 27.4% of the company.

Finnish 3G has already built 3G coverage in nine Finnish cities, and its licence requirements state that it is to have built 3G coverage in 18 cities in Finland by the end of 2003. However, it is possible that these requirements will be deferred. The acquisition price of US$9.1 million is equivalent to the proportion of the company's cash position acquired by Tele2.

Tele2 currently offers fixed line telephony and Internet services in Finland and is in the final stage of negotiating a MVNO agreement to offer GSM mobile services. Customers will subsequently be offered 3G services.

The acquisition is subject to governmental and regulatory approvals required under the laws of Finland and the European Commission.

Lars-Johan Jarnheimer, CEO of Tele2 said; "The takeover of Finnish 3G offers us the opportunity to develop a MVNO business in Finland at a low cost and with minimal capital expenditure requirements. It will also enable us to subsequently offer 3G services to our customers "."

Posted to the site on 13th May 2003