Press Release

TELE2 LAUNCHES A MOBILE TELEPHONY COOPERATION WITH ONE

• Contract on the joint utilisation of transmitter installations was signed
• Tele2 will be the first Austrian mobile virtual network operator (MVNO)

Tele2 and ONE embark on a trend-setting cooperation: In future, Tele2 will be entitled to use the ONE transmitter installations and offer its own mobile telephony services under the prefix 0688. The MVNO model has already been successfully employed throughout Europe.

ONE and Tele2 have recently concluded the first Austrian agreement on the joint utilisation of a mobile telephony network. With its well over 450,000 customers, Tele2 is market leader among the alternative fixed line providers in Austria and will enter the Austrian market as fifth mobile telephony provider in the next few months with the prefix 0688. The utilisation of the ONE transmitter installations makes this possible: Tele2 will become a mobile virtual network operator (MVNO) by renting the existing ONE mobile telephony network. The company has already been allocated a network code, and interconnection negotiations are under way.

Successful European model also adopted in Austria

This agreement between two successful Austrian companies represents a milestone in the liberalisation of telecommunications. ONE CFO Christian Schrötter, “The ONE network is the most modern and powerful mobile telephony network in Austria. Together with Tele2, we will transfer a model, which has already been employed successfully in other European countries, to the Austrian market.” The entry into the Austrian mobile telephony market is part of the European Tele2 strategy. Tele2 Managing Director Norbert Wieser, “We already work as mobile virtual network operator in several EU countries. In ONE, we have now also found a strong partner in Austria, who allows us to add mobile telephony to the services already offered to our more than 450,000 customers.”

The joint utilisation of the transmitter installations offers advantages to both consumers and providers

According to the agreement, ONE will provide mobile population coverage for the Tele2 customers. With the exception of the transmitter installations, Tele2 will also invest in a mobile telephony infrastructure and directly provide all components, such as server, switches, voicemail box, SMS, additional services, interconnection and roaming.

The joint utilisation of the mobile telephony network offers advantages for both providers and consumers: The network capacity will be better utilised, existing transmitter installations can be used more effectively. This saves infrastructure expenses and operating cost. A further consequence of the joint infrastructure utilisation is the fact, that despite an additional mobile telephony operator no further transmitter masts have to be built. Christian Schrötter of ONE, “At present, ONE already has a population coverage of 97 percent in Austria. High quality and, in this case, sufficient network capacities, have always enjoyed top priority at ONE. These capacities can now be used for additional revenues from Tele2, and will thus further corroborate our success.” As Tele2 and ONE have different market positions, it is to be expected that the two companies will largely attract different customer segments.

Mobile virtual network operator – a trend-setting model

The mobile virtual network operator model is regarded as an international trend-setter in the telecommunications business. Against a certain fee, a MVNO utilises the transmitter installations of an existing mobile telephony provider. The MVNO operates under its own brand name, sells its own mobile phones and SIM cards and separately bills its services. For macroeconomic reasons, the European Union also recommends the joint utilisation of telecommunications infrastructure. Such models have already been employed successfully in several European countries.

In case of questions, journalists contact:
Tele2:
Jürgen H. Gangoly, The Skills Group – Pro & Co, Fon: 01-595 21 10 17