Utfors Gets Injection for New Network in Sweden

Utfors AB received SEK 200 million (US$23 million) in a private placement to build a fiber network linking Stockholm to Oslo, Gothenburg, and Malmoe.

This network will be used for broadband applications by Utfors.

This first loop is the starting point for a network to encompass 3500 km in Sweden. The total investment for Utfors for building the fast access network is about SEK 2 billion (US$ 235 million).

The new loop network is expected to be operational by March.

This latest injection comes from two investment companies, Norsk Vekst and Littorina Kapital. Norsk Vekst is a Norwegian company and Littorina Kapital is backed by Swedish banks KF Invest and LRF.

The company said that the capital it has just received will make it possible to increase network speed and reach more customers, said Jan Werne at Utfors.

Utfors, founded in 1994, is a relatively new telecom and ISP known for its offering of free Net connections. Its new strategy is to build its own broadband network based on IP-technology, and to target corporate and private customers in Sweden.

Its rivals are not only the established telcos and ISPs, but also new operators such as Bredbandsbolaget who want to compete for faster connectivity in the Swedish market.