From greenfield to just green

20 December 2002 By Paul Raynes

From greenfield to just green

20 December 2002 By Paul Raynes

Orange’s Swedish exit means Hutchison is the only 3G startup left in the EU. So much for E21bn of licence fees. And so much for greater competition. Having shrunk by 15% in a year, the market has a bit further to consolidate.

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Orange has announced its plans to withdraw from the Swedish market. The mobile subsidiary of France Telecom has been in dispute with the Swedish telecoms regulator over the pace at which it is required to roll out its 3G network, as have Vodafone's and Hutchison's Swedish operations. Orange, which has no conventional mobile offering in Sweden, acquired a 3G licence for negligible consideration, but in return for commitments to the rate at which it would achieve network coverage in the country. The operator recently announced that it would be reining in its international ambitions in order to help to improve its cash generation, as part of the France Telecom group's overall effort to reduce its borrowings.

At the start of 2002, there were 64 mobile operators in the EU and Switzerland. Of the 60 with 3G licences, eight have exited that business in the course of the year. The list includes Quam and Mobilcom in Germany, IPSE in Italy, Xfera in Spain, ONIWay in Portugal, Telefonica in Switzerland and Austria, and now Orange in Sweden. In total, this group paid E20.5bn for their licences to operate. Italy's Blu, which did not have a 3G licence, has also been liquidated.

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