STILL MUCH TO BE DONE TO IMPROVE COMPETITION IN THE EUROPEAN TELECOMMUNICATIONS MARKET

New York and Stockholm – Member States’ delayed introduction of the new regulatory framework for electronic communications has created an unclear legal situation, which is being used by former monopolists to maintain and increase their market shares. There are also signs that former monopolists continue to abuse their dominant positions, resulting in higher prices for Europe’s consumers and businesses.

– There are no reasons or excuses for waiting to open up new market segments, says Jan Tjernell, head of regulatory affairs, Tele2. Europe’s consumers and businesses can save EUR 2.5 billion only by opening up the market for fixed telephony subscription to full and fair competition. Tele2 has today published the report “The Monopoly Challenger – presenting its views on the implementation of the regulatory framework for electronic communications”. The report summarizes Tele2’s findings on the progress and effects of the new regulatory framework in the 24 countries where Tele2 operates. The new regulatory framework for electronic communications became applicable for old and new Member States in July 2003 and May 2004, respectively. The report states that many of the problems in the telecommunications market occur because the former monopolists still own the access networks for fixed telephony. Former monopolists often find procedural, legal and technical reasons for being slow in opening up market segments. This is especially true for fixed telephony subscription and ADSL. In order to secure fair competition between operators it is essential to have well-functioning national regulatory authorities. Furthermore, in the report, Tele2 highlights the need for a harmonization of the price control and cost accounting models that are developing in the Member States. Tele2 also calls upon the European Commission to put constant pressure on Member States to analyze and impose remedies. – The advantages of a harmonized market for electronic communications open to competition are clear. Consumers and businesses end up with lower prices and better services, concludes Jan Tjernell. The complete report, including Tele2’s top ten proposals for action, is attached to this press release, and available at Tele2’s website www.tele2.com. CONTACTS Jan Tjernell, Telephone: + 46 8 562 640 00 Director Legal, Regulatory and Purchasing, Tele2 AB Malin Rydberg, Telephone: + 46 8 562 640 25 Information Manager, Tele2 AB Visit us at our homepage: http://www.Tele2.com