Quick View: 3 Sweden Left With Limited Options After Failure In 5G Spectrum Auction

摘要

Implications: The three main operators reinforced their positions within the market by securing important frequencies for the upcoming launch of 5G services. Being a mature and saturated market, Sweden presents few opportunities for organic growth and high levels of competition. Due to the limited adoption of bundled services (not particularly popular in the country), growth will be driven by the surging usage of mobile data, which we forecast will spike around 2022 with a year-on-year (y-o-y) growth of 30% as the uptake of 5G will gain momentum. Telia, Tele2 and Telenor’s recent investments in spectrum and networks highlight how the focus of the competition among operators will increasingly be on 5G and latest technologies. Meanwhile, Three sees its position significantly weakened having failed to secure frequencies in the 700MHz band. Already the smallest player in the market, the company now has limited options to compete on a level playing field in Sweden. The moderate success of bundling in Sweden suggests that this would be not a safe bet to ensure new sources of growth, while consolidation is not a viable option as there is no other player that Three would be able to buy or merge with.