TeliaSonera breaks out network unit

Swedish-Finnish operator TeliaSonera said Monday it is going to separate out its network into a fully-owned telecom infrastructure subsidiary in Sweden.

The company will cover copper and fibre networks and trenches, and sell its products on equal terms to TeliaSonera’s wholesale customers.

The move seems to be in pre-emption of legislation being introduced by the government. TeliaSonera said it wants to continue to invest in the Swedish telecommunications infrastructure, “but must also be able to manage these investments within the scope of the requirement for equal treatment.”

The company opposes the proposal of the Swedish National Post and Telecom Agency (PTS) for an act on so-called “functional separation”. The problems of the broadband market are not the kind that require such far-reaching legislative action.

“The proposal regulates in detail the operations of a listed company in a manner which is unacceptable to us”, said Anders Bruse, head of the Broadband Services business at TeliaSonera. “With our market-based plan, we are able to solve the problems of the broadband market on voluntary basis and much faster than by legislative means.”

The new infrastructure company is estimated to launch operations in the fourth quarter.