The Swedish phone company, Telia, has become the first former European phone monopoly to miss out on a permit in its own country. The company said it will appeal the decision not to award it a licence to set up a high-speed wireless network in Sweden.
Telia, which along with Dutch operator KPN owns 35 per cent of Eircom, failed to fulfill requirements for coverage and capacity, according to Sweden's Post and Telecom Agency.
The four licences were awarded to Europolitan Holdings and NetCom - both Swedish mobile phone operators , as well as groups led by France Telecom and Hutchison Whampoa.
The agency head Mr Nils Gunnar Billinger said he was "surprised" at the application Telia submitted. "Telia underestimated the opposition." The decision is a blow to Telia, which is still 70 per cent owned by the government after a June initial share sale, upsetting the company's plan of focusing on mobile services in the Nordic and Baltic states.
Ms Marianne Nivert, president of Telia Group, also expressed her surprise. "Telia is the leading mobile operator in the Swedish market. It is very peculiar that PTS does not seem to believe we are worthy of a licence."
"If this is the final decision, we'll have to review our strategy and direction within mobile telephony," said Mr Kenneth Karlberg, head of Telia's cellular unit, adding that the company has no alternative plan for now.
"We are extremely surprised since we fulfill all the important criteria. We will review our application once again and then make an appeal."
