Sweden

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Telecommunications Regulation SWEDEN Vinge KB, Advokatfirman CONTACT INFORMATION Carl Johan af Petersens Vinge KB, Advokatfirman Smålandsgatan 20 Box 1703 111 87 Stockholm +4686143000 [email protected]

1. What is the name and nature of the regulatory body(ies) in your jurisdiction? To which bodies (if any) are decisions appealed? The Swedish Post and Telecom Agency (Post- och telestyrelsen; “the PTS”), state authority. The PTS decisions are appealed to the administrative courts. The Stockholm county administrative court is the court of first instance. Leave to appeal is necessary in order to appeal to the Stockholm Administrative Court of Appeal and the Supreme Administrative Court. 2. Has your jurisdiction adopted the WTO Basic Telecommunications Agreement? If yes, with what exceptions, if any? Yes, Sweden has adopted the WTO Basic Telecommunications Agreement with no exceptions. (http://www.regeringen.se/content/1/c6/01/71/97/9f05a0c2.pdf)

3. Are operators in your jurisdiction privately or publicly/state owned?

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Sweden

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Operators in Sweden are privately owned except for the incumbent TeliaSonera AB which is partly state owned, and various municipally owned operators such as AB Stokab, Fastbit AB, Sollentuna Energi AB and Gävle Energi AB. 4. What are the primary differences between the regulation of wire line, wireless, satellite, cable and VoIP providers? The Swedish Electronic Communications Act applies to providers of electronic communications networks and communications services, regardless of what type of infrastructure is used. Hence, the regulation (as regards electronic communication) is in many aspects the same. The main difference between the mentioned providers is that the use of radio frequencies (i.e. wireless communications) as a main rule requires a license. 5. Are broadcasters regulated separately from telecoms? The content of television broadcasting is regulated in the Swedish Radio and Television Act, but the use of radio transmitter is regulated in the Swedish Electronic Communications Act. 6. How are satellite earth stations and submarine cable landings regulated? Satellite earth stations in Sweden are regulated in the Swedish Space Activities Act. Submarine cable landings in Sweden are inter alia regulated in the Swedish Environmental Code, the Swedish Rights of Way Act and the Swedish Continental Shelf Act. In addition, the Swedish Electronic Communications Act applies to provision of electronic communication services. 7. How is the radio spectrum generally regulated? The use of radio spectrum is subject to a licensing requirement. Licenses are granted by the PTS following an open invitation to apply if it may be assumed that there is a shortage of frequencies. In the event of competition for spectrum, licenses are granted according to either a comparative selection procedure (beauty contest), following a tender procedure or following a combination of these proceedings. Licenses are granted for a fixed period. 8. Are any operators granted exclusivity? No.

9. Are anti-competitive practices subject to regulation or general competition (e.g., antitrust) laws?

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Sweden

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Power) operators. Such obligations include application of non-discriminatory In order to establish efficient competition, specific obligations shall, according to the Swedish Electronic Communications Act, be imposed on SMP (Significant Market conditions and satisfaction of reasonable requirements on access to and the use of the network and associated facilities. Also, the Swedish Competition Act, which is generally applicable, includes two primary prohibitions that are practically identical to Articles 81 and 82 in the EC Treaty: a ban on anticompetitive agreements or concerted practices and a ban on the abuse of a dominant position. 10. What services have been liberalized or designated as competitive services? The entire telecom market has been liberalized. 11. Are there regulated tariffs or price lists? If so, for what types of services? Not with respect to end-user prices, except for regulated end-user prices that may be levied by mobile operators for the provision of EU wide roaming services for voice calls, SMS messages originating and terminating within the EU and for data communication services used by roaming customers pursuant to the EC Regulation no 544/2009. 12. Are there restrictions on foreign investment in any types of communications companies? If so, what are the restrictions? No. 13. What are the approval processes for mergers and acquisitions? Do these vary by type of operator? Telecom licenses will not be affected by a stock sale, as long as the legal entity remains the same (i.e. no transfer or assignment will be needed). The transfer of a license to another legal entity (i.e. in an asset sale) requires the prior approval by the PTS. Mergers and acquisitions may also be subject to prior approval by the Swedish Competition Authority (or the European Commission) under the applicable merger control rules. 14. Is interconnection between carriers mandatory? There is a mandatory obligation for operators to negotiate regarding interconnection and possibility for the PTS to order an operator, which control access to end-users, in return for fair market price, to conduct interconnection or implement other measures that are required to ensure that end-users can reach each other. The PTS is also empowered under the Swedish Electronic Communications Act to e.g. order SMP operators to conduct interconnection and to apply cost-oriented or other pricing

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Sweden

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15. Are interconnection fees/rates regulated? The PTS is empowered under the Swedish Electronic Communications Act to order SMP operators to apply cost-oriented or other pricing for specified types of interconnection and other forms of access. 16. Must carriers make available network components to competitors? If so, what are fees/prices based on cost, or market rates? The PTS may impose obligations on SMP operators to inter alia provide network access on a cost oriented basis. 17. Is there an obligation to serve all customers? If yes, is there a fund to subsidize eligible carriers? Which carriers contribute to the fund? Which carriers are eligible to receive these funds? Are broadband services subsidized or otherwise promoted through tax or other incentives? No, however the PTS may order appropriate operator(s) to provide universal services at an affordable price. There is no fund established under Swedish law. If the obligation to provide universal services is unduly burdensome, the services can be procured with state funds. 18. Are there mandatory requirements to customer agreements (subscriptions, etc.)? Yes, agreements with end-users must contain information regarding e.g. level of quality, period of supply and conditions of extension and termination of the agreement. 19. Are there any general or telecommunication specific requirements as to data retention? No, but the Data Retention Directive (2006/24/EC) is expected to be implemented in Sweden on 1 January 2010. 20. Is number portability mandatory? If so, for which types of carriers (e.g., wireline, wireless, voice over internet protocol)? Number portability is mandatory for providers of electronic communications services that involve the possibility to call up or receive a call via one or several numbers within a national or international numbering plan, including emergency calls.

21. Is “equal access” dialing selection mandatory? If yes, for which types of carriers? Equal access is mandatory for fixed telephony carriers.

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Sweden

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22. Is access or other contributions (“ADCs”) required of new entrants? No. All social policy objectives are publicly financed. However, all companies (not only entrants) with a business which is subject to notification obligation and which exceeds SEK 30,000,000 shall pay an annual emergency surcharge to PTS. This charge amounts to 0,150 per cent of the annual turnover of the business subject to the notification obligation. 23. Is VoIP regulated? If yes, to what extent? The Swedish Electronic Communications Act applies provided the supplier of VoIP has the right to control the transmission of signal (by possession or agreement). 24. Are any major changes to telecommunications laws expected in the near future? Yes, the implementation of the Data Retention Directive (2006/24/EC) will affect telecommunications law in the near future. 25. Is resale of telecom services permitted? If yes, is this activity regulated? What is the process to become a reseller? Are foreign companies permitted to be resellers? Yes. Depending on the circumstances the operations of the reseller may be subject to a notification requirement. Foreign companies are permitted to be resellers.

2100 West Loop South, Ste. 1000  Houston, Texas 77027  USA  Tel: 1.713.626.9393  www.lexmundi.com