Tele2 Netherlands seeks to drown subscribers with LTE data deluge

Tele2 said it aims to enable Dutch mobile users to "drown themselves in data" after launching an LTE Advanced (LTE-A) network in the Netherlands.

The Sweden-headquartered operator said it aims to create a permanent shift in mobile data consumption in the country with an LTE-A network that today offers outdoor coverage of 92 per cent of the country. The move marks Tele2's shift from MVNO to MNO, and the network complements the operator's existing fixed-line infrastructure.

Tele2 Netherlands will seek to entice mobile subscribers with a suite of 4G bundles ranging from 1 GB of data per month with 100 minutes and SMS, through to 24 GB with unlimited voice and SMS. The latter option is priced at €35 ($37.58) per month, excluding a mobile device.

The operator said it aims to reach a revenue market share of 20 per cent in the Netherlands by offering the bundles, which it noted would allow subscribers to access the Web via mobile internet rather than seeking out public Wi-Fi hotspots.

In a statement, the operator explained that relatively high prices and low data bundles have deterred subscribers in the country from using wireless broadband.

"It's time for the Dutch consumers to release the handbrake when it comes to mobile data usage," said Jeff Dodds, CEO of Tele2 Netherlands. "Over the last three years price levels in the Netherlands have remained amongst the highest in Europe, and we're here to shake up the market and start a data revolution, with the launch of our new superfast LTE Advanced mobile network, offering great speed, great coverage and the lowest price."

Tele2 -- which competes with Vodafone NL, T-Mobile NL and KPN on the mobile market -- explained that it aims to be the first operator in the world to rely solely on LTE for its mobile service.

Allison Kirkby, CEO and president of Tele2 Group, said that the Netherlands "is the sixth country where we have opened our own 4G infrastructure" and that the operator aims to "stimulate demand for mobile connectivity" by offering subscribers "much larger, more affordable 4G data bundles."

Tele2 aims to offer nationwide LTE-A coverage by the end of the first quarter in 2016. The operator stated the network uses carrier aggregation to deliver maximum data rates of up to 225 Mbps.

The operator's move comes a matter of weeks after Reuters reported that Deutsche Telekom hired Credit Suisse to advise on options for its T-Mobile Netherlands unit. The business is one of the few remaining mobile-only operations in the Deutsche Telekom group, and faces mounting competition from KPN, Vodafone Netherlands and Ziggo, which each offer converged fixed-mobile services.

Deutsche Telekom is exploring a sale of T-Mobile Netherlands or an asset swap, Reuters stated.

For more:
- see Tele2's announcement
- read this Reuters report

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