3 Sweden to pull low-cost unlimited offer amid fears of price war

Three Sweden will stop marketing an unlimited voice and data tariff after demand greatly exceeded the company's expectations.

The pricing plan, which was only launched earlier this month, will now end on April 10 instead of April 22, with some observers believing the company is reacting to fears that it could trigger a price war with its Swedish rivals.

The plan offers unlimited calls and for SEK349 (around €39) a month, a significant reduction from the previous price of SEK699 (around €79).

In response to Three's unlimited offer, rival low-cost operator Tele2 launched a similar SEK349 deal, which its spokeswoman Pernilla Oldmark said will run until it is scheduled to end on April 23. "However, for us this campaign has also been very successful, so we don't rule out ending it earlier," she told Dow Jones Newswires.

Despite being one of the most advanced telecoms markets in the world, Swedish mobile operators continue to compete fiercely on price. One of the country's largest, Tele2, added 117,000 customers to its 3.72 million mobile customer base last year, and reported sales growth of 6 per cent in 2011. Three Sweden has 2.15 million customers in Sweden.

For more:
- see this Dow Jones Newswires article

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