BMI View: We have not made significant changes to the forecast outlook this quarter as the fixed andmobile markets continue to perform in line with our estimates. We remain of the opinion that the saturationin the market means that operators are looking to migrate customers to more premium services such asLTE, fibre and connected devices. This need for diversification from legacy products has driven M&Aactivity, with Com Hem acquiring Boxer to increase its penetration of detached housing, and Tele2 buyingTDC Sweden to improve its business offering in H216. However, bundling remains a minor part of themarket as consumers prefer the flexibility of stand-alone services. Looking ahead, we see mobile carriersactively deploying their 4G+ LTE-Advanced networks as they prepare for a 5G launch.
The Swedish mobile market reached 14.62mn subscribers in Q217.
The regulator PTS is slated to auction more spectrum in Q417 and Q118. Airwaves in the coveted700MHz LTE compatible spectrum and 450MHz wireless broadband are set to be auctioned in thecoming months.