Tele2 in Croatia Improves 3G Network, Launches First Exclusively 4G Network in the Netherlands

Our stance is that there is no need to rush with the 4G network in the Croatian market. We have decided to further invest in our 3G network, which will also enable us a simpler transition to the 4G network that we will launch when we believe it is the right time for it.

Thus said Allison Kirkby, the new CEO of the Tele2 Group, who took on this role on September 1 of this year, reiterating the company’s position on investing in the next-generation mobile network in Croatia. Kirkby assessed that the Croatian market is very demanding, particularly emphasizing the lack of predictability regarding taxes and regulations. 

– I am very proud of how our local team operates despite the fact that it has the weakest network in the country, but that will soon change. We see growth in the Croatian market, and that is why we have decided to invest this year and next. We are looking positively at Croatia again – said Kirkby.

They do not plan to enter new markets but will focus on strengthening their position in existing ones. Tele2 is currently investing the most in Kazakhstan and the Netherlands. At a press conference in Amsterdam, their new 4G network was presented, the first in the world that is exclusively 4G, making Tele2 the first “4G only” mobile operator providing data services, and from next year also voice services over the 4G network without the need for the old 2G/3G infrastructure.

Tele2, which already has a developed fixed network in the Netherlands, decided on this leap and investment of around 400 million euros after the Dutch regulator decided in 2009 to open the market for a fourth mobile operator with the aim of lowering prices.

– Tele2 has always been and will always be a challenger – said Kirkby.

Tele2’s mission in the Netherlands is to have excellent coverage and speeds at the lowest price.

– We are entering a data war and want to shake up the Dutch market – said Jeff Dodds, CEO of Tele2 Netherlands.

They are confident that they have a network that will change the market. Currently, the coverage of this network in the Netherlands is 65 percent indoors, and the plan is for it to be around 90 percent by the end of next year. With the LTE Advanced network, speeds of up to 225 Mbps are achieved. During the press conference, a video download was demonstrated, which took three to four minutes on the 3G network, 11 seconds on 4G, and eight seconds on LTE Advanced. Users in the Netherlands will pay 35 euros for 24 GB of traffic with unlimited calls and SMS per month. Tele2’s goal is to capture 20 to 25 percent of the market.

However, for Croatia, as emphasized by Kirkby, and then Malin Holmberg, CEO of Tele2 Croatia, nothing changes regarding investment in the 4G network. It is still on hold, although the time when Tele2 will be ready for that investment is “approaching.” What needs to change for that to happen?

– When we launch the 4G network, it will have to be for a large part of the market with a relevant offer. We are not only interested in theoretically extreme speeds in one city. For us, it is a mass market, and when we see sufficient demand, we will invest in the 4G network – said Holmberg, adding that it is not a problem for them that the main competitors, HT and Vipnet, are already heavily investing in the 4G network.

Tele2 has so far invested in the 4G network in six countries. Regarding Croatia, investments are underway to upgrade the 3G network, which were announced in February this year and are expected to last two years. So far, several hundred million kuna have been invested, said Holmberg, with the first focus on the coastal area and then along the highways. As previously announced, the investment in network upgrades in 2015 will reach the total amount invested in the network over the past six years in Croatia.

In addition, Tele2, which is globally recognized as a provider of M2M (Machine to Machine) and IoT (Internet of Things) services, will increasingly focus on this segment and business users in Croatia. Tele2 counts M2M clients in over 50 countries worldwide, and connectivity solutions used in fleet management, automatic meter reading, security solutions, remote system management, and monitoring are part of that product portfolio. In Croatia, they currently have two M2M service users – Solvis, a global manufacturer of solar cells and panels, which required connectable solar panels to always optimize their performance and quickly resolve any issues that may arise, and the startup Pet Finder, which allows pet owners to find their pets in real-time using a smart collar and GSM/GPS locator.

– Tele2 is also a price leader in this segment, said Adrian Garrett, a member of the Management Board and Chief Commercial Officer of Tele2 Croatia, adding that he notices an increasing demand for such services in the Croatian market.

Tele2 has opted for a global approach in M2M services, rather than an offer limited to the local market, so companies from Croatia have access to a unified service regardless of which market they operate in.