Telenordia Challenges Telia’s Monopoly in Sweden

Swedish ISP and telco Telenordia introduced high speed wireless connection service in the city of Malmoe at SEK 200 (US$23) per month, a move that could prove to be a minor revolution for the Swedish telecommunications market.

Telenordia wants to own the access provided to its customers. By introducing a wireless environment, the telco could quickly build and control a network without being dependent on the monopoly that Telia still holds in Sweden. Telia currently owns the wires connecting each home and office.

Telenordia will use the wireless broadband technique called LMDS (local multipoint distribution service) from Newbridge. LMDS is scalable and gives users practical communication solutions, regardless of the size of the operation.

Telia has a practical monopoly on Internet access through its singular control of the network. Building an alternative fiber network would be costly for any potential competitor. Through LMDS, rival telcos can take control of the entire chain, up to the customer.

The LMDS technology offers a entirely new option by which other telcos can offer new services and realistically compete, said Erik Heilborn, Telenordia’s CEO.

When LMDS is fully built, Telenordia can offer end users a connection to Internet that is 30 times faster than current modem technology at nearly half the current monthly cost.

The quality of the LMDS network service is equal to fiber, and holds the advantage of its ability to reach all buildings in a city. New services are expected to run at speeds up to 155 megabit per second without requiring any new hardware.

“Now we can talk about broadband to the people,” said Heilborn.

LMDS reaches 80 percent of the city of Malmoe through one base station. Telenordia expect to expand the use of LMDS technique to all major cities in Sweden within next two years.

Telenordia was formed in 1995 by owners British Telecom, Tele Danmark and Telenor (Norway).