Sweden (Country Regulation Overview)

During 2009, Sweden saw revenue growth in mobile and data services, while fixed service revenues declined. The country has one of Europe’s most advanced broadband markets with among the highest penetration rates and connection speeds. In order to tackle the increasing demand for mobile data and mobile broadband as well as higher fixed broadband capacity, the Post-och Telestyrelsen (PTS), the national regulator, has taken a number of recent measures to free up spectrum and stimulate competition in broadband access.

In 2009, the PTS completed allocation of additional spectrum in the 3.7GHz band and plans to allocate 800MHZ spectrum in 2011. It has also launched consulting on awarding licenses in the 10.5GHz, 2,010MHz, and 3.5GHz spectrum bands. All the licenses to be awarded are expected to be technology-neutral, which will enable the operators to choose the most cost-efficient technology and will allow them to launch services with a shorter time to market. This can help the operators to cut down the costs which could be translated into lower prices for the end user.

In addition to its focus on the mobile data market, the PTS made some key decisions in 2009 to develop fixed-line wholesale broadband markets in Sweden. It has finalized the markets for local loop unbundling and wholesale broadband access services and obligated the SMP-designated operator, TeliaSonera, to provide access to cable ducts and optical fiber, and also offer broadband services over fiber and cable-TV networks to alternative operators. This should help in encouraging healthy competition in these markets.

In 2010, the PTS launched a consultation with the operators on revising the hybrid LRIC model, based on which the fixed and mobile interconnection rates and wholesale access rates are determined. As a result the interconnection and LLU rates are expected to decrease, which might further pull down the retail fixed, mobile, and broadband tariffs which are already among the lowest in Europe.