5G regulation and law in Sweden

1. What is the state of 5G deployment in your country?

5G deployment is underway. According to a report by the Swedish Post and Telecom Authority, more than one million mobile subscriptions used 5G networks during 2021, which was four times more than the year before. However, 95% of all mobile data traffic during 2021 ran on 4G networks.

The deployment is determined by the operators, as there are no general state requirements on where and when 5G should be deployed. However, Telia Sverige was awarded a licence in the 700 MHz band in exchange for an obligation to invest SEK 300m to extend coverage in certain areas. 

Tele2 Sverige aims to provide 90% of the population access to 5G by the end of 2023, and the remaining population in 2024. Telenor Sverige aims to provide 99.9% of the population access to 5G in 2023, although the final deployment will likely continue into 2024. Telia Sverige’s goal is to reach more than 90% of the population by 2023, and 99% of the population by 2025. 

2. Are telecoms companies monetising 5G investments - or are the services provided to consumers at similar prices to 4G? 

Telenor Sverige and Telia Sverige provide subscriptions compatible with 5G services at higher prices than 4G services. These 5G subscriptions also include benefits such as insurance, streaming services or more/unlimited data. 

Tele2 Sverige and Hi3G Access only provide subscriptions compatible with 5G services, and it is no longer possible to sign up for 4G-only subscriptions.

3. Has 5G been launched for industrial purposes? For which sectors?

5G has launched for industrial purposes. 

For example, telecom and technology providers have partnered on 5G for: 

  • Industrial productivity solutions (Atlas Copco)
  • Research and innovation (KTH Royal Institute of Technology)
  • Power grids (ABB Power Grids)
  • Remote controlled machines and automations (Volvo CE)
  • Mines (Boliden)
  • Sawmill production (Fiskarheden)
  • Bearing production (SKF)
  • Paperboard mill (Holmen Iggesund)
  • Electric boat factory (X Shore) 

4. What is being done to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies?

Starting 1 January 2023, companies may apply for local licences to use radio transmitters in the 3.7 GHz and 26 GHz bands, which may be used for 5G. This enables local 5G networks in industries, mines, harbours, hospitals and other special premises. 

In the 700 MHz band, which is compatible with 5G, Telia Sverige has an obligation to use SEK 300m of the licence fee to extend coverage in certain areas specified by the Swedish Post and Telecom Authority. These areas are characterised by their current lack of coverage for call and data services (lower than 10 Mbit/s) and their location, such as roads, housing areas and leisure areas. 

5. What public tenders have awarded spectrum licences? 

In addition to the 700 MHz auction completed in December 2018, the auction for spectrum licences in the 3.5 GHz band (which includes 3.4-3.8 GHz) and the 2.3 GHz band took place in 2020-2021. 

An auction for spectrum in the 900 MHz, 2.1 GHz and 2.6 GHz bands is underway and expected to complete by the third quarter of 2023. 

5.1 What were the criteria for awarding each of the tenders?

The 700 MHz auction 

To participate in the auction, applicants had to apply no later than 5 November 2018.  Other criteria was: 

  • that the applicant was not insolvent,
  • that bids entered in the auction originated from the applicant,
  • that the applicant was not closely related to another applicant, and 
  • that, at the time of the application and during the auction, the applicant complied with relevant provisions in the Swedish Post and Telecom Authority’s regulations and the general invitation. 

The 3.5 GHz and 2.3 GHz auction 

To participate in the auction, applicants had to apply no later than 30 June 2020. Other criteria included: 

  • that the applicant was not insolvent,
  • that bids entered in the auction originated from the applicant,
  • that the applicant was not closely related to another applicant, 
  • that at the time of the application and during the auction the applicant complied with applicable provisions in the Swedish Post and Telecom Authority’s regulations and the general invitation, and 
  • that it could be assumed that radio use was not going to harm Sweden’s security interests.

The 900 MHz, 2.1 GHz and 2.6 GHz auction

Due to amendments to the Swedish Electronic Communications Act, the open invitation is divided into two parts. Part one contains information regarding the protection of Sweden’s security when using radio transmitters, the Swedish Post and Telecom Authority’s consultation with the Swedish Security Services and the Swedish Armed Forces and the requirements to apply. Part two will contain rules regarding the auction procedure and the conditions that will be combined with the licences to use radio transmitters. 

Anyone wishing to participate had to apply no later than 30 September 2022. Other criteria was: 

  • the applicant was not insolvent, 
  • the application must meet the requirements in the open invitation, 
  • the application must not contain any false information,
  • the application must be signed by an authorised signatory or holder of a power of attorney, 
  • an application may not be closely related to another applicant, 
  • two or more applicants may not coordinate applications or otherwise cooperate during the auction procedure (from submitted application to concluded auction), and
  • it could be assumed that the radio usage will not cause harm to Sweden’s security. 

5.2 What are the conditions of the spectrum licence? 

The 700 MHz auction 

The licences were accompanied by partially different conditions, although many were alike. Some of the conditions are mentioned below. 

  • Shared use. The frequency space awarded may be shared with others, provided that the licence holder is not exposed to harmful disturbance.
  • Providers may not cause any interferences, and must remedy any interferences reported by permanent residents to their terrestrial television in the 470-694 MHz frequency band. 
  • Coordination with the Swedish Armed Forces when building new or changing current installations. 
  • Telia Sverige’s licence was combined with an obligation to extend coverage for call and data services to at least 10 Mbit/s in areas specified by the Swedish Post and Telecom Authority (see answer to question 4). 

The 3.5 GHz and 2.3 GHz auction

The licences had partially different conditions depending on their frequency ranges. Many of the conditions are the same, and include: 

  • Shared use. The frequency space awarded may be shared with others, provided that the licence holder is not exposed to harmful disturbance.
  • The licence holders may not cause harmful disturbance to radio use according to existing licences.  
  • Products from Huawei or ZTE are not allowed in central functions for radio use in the frequency bands. Functions in the radio access network, transmission network, core network, operation and maintenance network are considered central functions.

The 900 MHz, 2.1 GHz and 2.6 GHz auction 

The Swedish Post and Telecom Authority has yet to publish conditions for spectrum licences. Those will be included in the second open invitation. 

5.3 What is the price and how is it calculated?

The 700 MHz auction 

The auction was performed in two stages. In the main stage, the licences were auctioned without specific frequencies. In the assignment stage, the frequencies were specified in a concluding single placement round. The lowest bid for FDD 2x10 MHz with coverage obligation was SEK 200m and SEK 100m for FDD 2x5 MHz. The outcome of the auction was: 

  • Telia Sverige: 2 x 10 MHz FDD with coverage obligation for SEK 1,383m in the frequency range 713-723 MHz and 768-768 MHz. 
  • Net4Mobility: 2 x 5 MHz FDD for SEK 721m in the frequency range 723-728 MHz and 778-783 MHz. 
  • Net4Mobility: 2 x 5 MHz FDD for SEK 721m in the frequency range 728-733 MHz and 783-788 MHz 

The 3.5 and 2.3 GHz auction 

The auction had two phases. In the first phase, the 3.5 GHz was divided into 16 blocks of 20 MHz and auctioned in a clock auction. The lowest eligible bid for a block was SEK 100m. The second phase determined which specific frequency range each licence would have. The outcome of the auction was: 

  • Hi3G Access: 100 MHz for SEK 491.25m in the frequency range 3400-3500 MHz.
  • Net4Mobility: 100 MHz for SEK 665.5m in the frequency range 3620-3720 MHz.
  • Telia Sverige: 120 MHz for SEK 760.25m in the frequency range 3500-3620 MHz. 

The auction in the 2.3 GHz band was performed as a second price auction with a minimum bidding requirement of SEK 400m. If there were several eligible bids, the tenderer with the highest bid would win. The outcome of the auction was. 

  • Teracom: 80 MHz for SEK 400m in the frequency range 2300-2380.  

The 900 MHz, 2.1 GHz and 2.6 GHz auction 

The price calculation will be included in the second open invitation (see answer to question 5.2). The price of the licences will be available when the auction is over and the licences have been awarded. The auction is expected to be completed by the third quarter of 2023. 

6. Is there a long-term spectrum plan or announcements for future tenders? 

The Swedish Post and Telecom Authority has presented a targeting plan for spectrum management, which states that it expects to award spectrum in the coming years. 

The award of spectrum licences in the 1500 MHz, 1800 MHz (for licences expiring on 31 December 2027) and the 26 GHz band (25.1-27.5 GHz), is planned for 2025 or later.

The Swedish Post and Telecom Authority has also adopted a spectrum plan for non-commercial wide-scale 5G testing. Companies may apply for a test licence in certain frequency bands.  

7. If 5G specific rules are drafted, what do they say?

There are no specific 5G rules drafted.

8. Are there any issues in the implementation of the 5G projects? Have there been any decisions regarding non-compliance with 5G concessions’ obligations?

There have mainly been delays to the implementation of 5G projects. 

The first awarded spectrum, in the 700 MHz band, was delayed due to a change in legal conditions by the government. 

The Swedish Electronic Communications Act was then amended to protect Sweden’s national security interests, delaying new spectrum licences in the 3.5 GHz band. 

Telecom operators have also encountered delivery problems, causing further delays to 5G implementation. 

There are no known decisions regarding non-compliance with 5G concessions obligations. 
However, the Swedish Post and Telecom Authority have previously initiated a supervision in connection with 5G deployment, as described below.

In May 2020, Tele2 Sverige launched its 5G network in the three largest cities. After receiving notification that the launch might constitute an unauthorised transfer/lease of awarded licences to use radio transmitters under the previous Swedish Electronics Communications Act (2003:389), Chapter 3 Section 23-24, the Swedish Post and Telecom Authority initiated supervision. 

Net4Mobility, owned by Tele2 Sverige and Telenor Sverige, provided Tele2 Sverige with network capacity by using radio transmitters in the 3.4-3.8 GHz band. Since licences to use radio transmitters in the 3.4-3.8 GHz band had not been awarded for Net4Mobility but solely for Tele2 Sverige (3640-3660 MHz), Telenor Sverige (3620-3640 MHz) and Celestine Hill Communications (3660-3680 MHz, 3680-3700 MHz and 3760-3780 MHz), Net4Mobility were informed that its actions might be in breach of the previous Swedish Electronics Communications Act (2003:389). Shortly thereafter, the licence holders submitted applications for the leasing/transfer of the licences to Net4Mobility. The applications were later approved by the Swedish Post and Telecom Authority.

See also answer to question 12. 

9. What focused 5G network or spectrum sharing regulation exists? What are the latest developments in the thinking of the regulators about 5G shared infrastructure ownership or use?

According to the Swedish Electronics Communications Act (2022:482), Chapter 3 Section 12 Paragraph 5, a licence to use radio transmitters may oblige the applicant to share frequency space with others. 

For example, for licences in the 3.5 GHz band, the licence holder has priority in the allocated frequency space over licence holders who may be added later. In addition, the frequency space is shared with others on the condition that the applicable licensee is not subject to harmful interference. 

No focused 5G network or spectrum sharing regulations exist. 

There has not been any specific thinking about 5G shared infrastructure ownership or use. 

Some telecom operators have enabled network slicing, such as Telenor Sverige for the KTH Royal Institute of Technology. 

10. Are 5G network sharing or spectrum sharing agreements in place?

There are no known 5G network sharing or spectrum agreements in place. 

However, Tele2 Sverige and Telenor Sverige established Net4Mobility in 2009 to jointly build and operate a national 4G network. They chose to continue and further develop their partnership to include 5G. 

11. What are or will be the rules for granting competitors access to new 5G networks once they are deployed?

General rules for granting competitors access to 5G networks appear in the Swedish Electronics Communications Act (2022:482). 

According to the Swedish Electronics Communications Act (2022:482), Chapter 5 Section 1, an operator of a public electronic communications network must negotiate interconnection in good faith with a company that provides or intends to provide publicly available electronic communications that are not number-independent interpersonal communications services. (A number-independent interpersonal communications services means an interpersonal communications service which does not connect with publicly assigned numbering resources, namely, a number or numbers in national or international numbering plans, or which does not enable communications with a number or numbers in national or international numbering plans. In short and for example, messaging services in internet-based applications or linked to social media.)  

If the negotiations do not result in an agreement, the company must approach the Swedish Post and Telecom Authority for dispute resolution in accordance with the Swedish Electronics Communications Act (2022:482), Chapter 11 Section 14. In such cases, the Swedish Post and Telecom Authority would likely set binding terms and conditions between the parties.  

12. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

5G security concerns and the possible use of Chinese technology have been raised.

In a ruling on 22 June 2022 (Kammarrätten i Stockholm, mål nr 5222-21, 5223-21), the Administrative Court of Appeal upheld the Swedish Post and Telecom Authority’s decision to combine licences to use radio transmitters with a ban on using Huawei products in fundamental functions in the 5G network. Products from ZTE were also banned. 

The Swedish Security Service and the Swedish Armed Forces told the Swedish Post and Telecom Authority that using Huawei Technologies products in 5G infrastructure could cause considerable and manifest risks to national security. 

According to the Swedish Regulation on Electronic Communications (2022:511) Chapter 3 Section 13, the Swedish Post and Telecom Authority must consult with the Swedish Security Service and the Swedish Armed Forces on matters relating to radio transmission licences.