Swedish telecoms operator Telia, which failed to win a licence to run next-generation mobile telephones in its home market, has formed a joint venture with telecoms group Netcom to build a UMTS network, Telia said today.
Telia, which holds a 14 per cent stake in eircom, will have equal access to Netcom subsidiary Tele2's Universal Mobile Telecommunications System (UMTS) licence under the joint venture.
Under the terms of the agreement, Telia and Tele2 will build a network to provide nationwide coverage in Sweden and the two companies will continue to compete individually for mobile customers with their respective offerings.
Telia chief executive officer Ms Marianne Nivert and Netcom chief executive officer and president Mr Lars-Johan Jarnheimer said in a joint statement the two companies would be able to together achieve a more rapid capital return.
The two companies will each own half of the joint venture company, which will build and maintain the UMTS network and own the UMTS licence that had been awarded to Tele2.
AFP