Press release

No.: 61/02
Date: 21.05.02

Mobile communications in Norway: A more competitive market

The Norwegian Government will allow network sharing for the UMTS licencees.

The vacant UMTS licence will be awarded by means of auction.

Access for mobile virtual network operators to the networks of operators with significant market power will be mandated. For the time being these rights are only relevant for the GSM market.

These are some of the key proposals in the Government´s white paper concerning the situation in the Norwegian mobile market. The white paper was forwarded to the Norwegian Parliament (Stortinget ) on 15 May 2002.

- To achieve fundamental objectives in the telecommunications policy, namely basic telecommunications services for all citizens at reasonable prices and of high quality, it is important to prepare for effective competition in the mobile market. This calls for business conditions which ensure the establishment of competitive and independent mobile operators, says the Minister of Transport and Communications, Mrs. Torild Skogsholm.

Access for mobile virtual network operators

- The Government proposes that operators with significant market power will be required to grant access for mobile virtual network operators (MVNOs) upon request. Such access should be subject to commercial and non-discriminatory terms, says Mrs. Skogsholm.

Even if the main challenge is to prepare for the establishment of several competitive and independent operators, the Government sees mandated access for MVNOs to the existing mobile networks as useful and supplementary to the overall competition in the mobile market.

Network sharing oppurtunities for the UMTS licencees

The Government also proposes to allow network sharing for the UMTS licencees in order to fulfil their roll-out requirements. The licencees will be able to reduce their roll-out costs by means of network sharing, states the white paper.

The coverage obligations for each individual licencee remain unchanged. Furthermore, the Government sees no reason to postpone the original roll-out obligations. If a licencee is obliged by its licence terms to a more extensive roll-out than achieved by network sharing, it must build its own additional network to fulfil the terms.

Although the Government regards network sharing as facilitating network roll-out, it is still important that separate networks are established in the most densely populated areas. This is important  to the prospects of long term sustainable competition. The white paper states that it is most suitable to allow network sharing in areas where competing separate networks probably will not be commercially viable, for instance outside the minimum coverage requirements in the original invitation to tender for UMTS licences, that is approx. 40 pct. of the population.

The National Post and Telecommuncations Authority will outline how network sharing may be accomplished, while at the same time safeguarding long term competition.

Invitation to tender for the vacant UMTS licence

In the white paper the Government proposes to award the vacant UMTS licence as soon as possible by auction starting at a minimum fee of 200 million NOK. The coverage requirements will be as in the original invitation to tender: The tvelwe most densely populated areas must be covered within five years. Additional coverage may be achieved in cooperation with the other licencees, cf. the network sharing proposal.

For further questions concerning the white paper, please contact The Ministry of Transport and Communications, Postal Services and Telecommunications Department, tel. +47 22 24 83 53.