Permit issues could delay operator rollouts
HELSINKI, Finland-PTS, Sweden’s telecom regulatory authority, appears to have accepted the general position adopted by operators that meeting the 2002 deadline for rollout of third-generation (3G) services will not be feasible. The position taken by PTS is significant, as the authority had, at one stage, even threatened to revoke licenses if the 2003 deadline was not met.
In a new conciliatory twist, PTS has asked the Swedish government to grant the authority additional powers “to assist operators in meeting 3G mobile services rollout targets.” Operators have given a cautious welcome to the PTS proposal.
Their support appears conditional on the government stopping short of handing the PTS a legislative carte blanche, which the authority might use to penalize license holders. This danger is slight given that the PTS is anxious to ensure the 2003 rollout deadline is met.
“In Denmark and in Finland, telecom authorities have greater powers of intervention when operators cannot reach agreement on such matters as mast sharing or roaming,” said the PTS in a statement issued to coincide with its request for more powers from government.
The PTS’ request happens in a backdrop where some operators concede they will find it difficult to meet the 2003 deadline. Of particular concern is a stipulation contained in licenses issued that operators achieve full national coverage by year-end 2003.
Operators, including Vodafone Group, claim that delays are occurring because of problems associated with obtaining permits from municipalities for the construction of masts. Other problems relate to the availability of handsets and the need for long-term roaming agreements.
PTS said that it would also use the extra powers sought to “intervene and settle disputes” between operators. According to the PTS, the two key areas of dispute for the four license holders comprised the construction of masts and roaming agreements.
To reduce overheads, the license holders have formed two project groups to build joint networks covering rural areas. However, all four intend to build their own networks in Sweden’s biggest towns and cities. Some municipalities are decidedly reluctant to issue more than one building permit for new telecom masts needed, voicing concerns that thousands of new masts will impact negatively local environments.
Swedish municipalities want all operators to pool resources and share masts instead of building competing structures. Although discussions have been held, operators have failed to reach agreement on the terms under which this should or could be done.
Vodafone is cooperating with the French mobile operator Orange, the Hi3G consortium, the Hong Kong-based Hutchison Whampoa and Swedish investment company Investor. Tele2 is cooperating with Telia. The Swedish state-owned telecom did not obtain a 3G license but is anxious to become a significant virtual operator.
“We have encountered several problems with building permits, and if these problems continue, we will have difficulty with completing the rollout by December 2003,” said Vodafone spokesman Johan Holmgren.
The PTS wants the government to amend the Telecom Act, under which the four licenses were issued, to oblige operators to cooperate on mast construction. PTS also wants the power to act as mediator in the event that operators are unable to agree on the terms and conditions of any future agreements.
Controversially, the PTS also wants the power to decide on fees and other conditions concerning roaming among networks of different operators, again in the event that license holders cannot reach a settlement.
For its part, Orange insists the company has done everything possible to fulfill license conditions and meet the 2003 deadline. “We are fast approaching a stage where we will need to have serious talks with the PTS concerning the time schedule and license conditions,” said Jeremy Huxtable, head of Orange Sweden.
