DNA and Sonera will cooperate in constructing a high-speed mobile broadband network in northern and eastern Finland
DNA and Sonera will establish a joint network company, Suomen Yhteisverkko Oy, to be responsible for constructing an all new joint network for mobile communications in northern and eastern Finland. Geographically, the new network will cover approximately 50 per cent of the country, and around 15 per cent of the population. The new company will be launched as soon as possible.
In the areas involved, Suomen Yhteisverkko Oy will plan and implement 2G, 3G and 4G network connections to be used by DNA and Sonera when providing services for their respective customers. This will facilitate better coverage for mobile broadband and voice services in the area, with a markedly higher number of base stations serving customers. The two operators will also combine the 4G network 800 MHz frequencies granted to them in the area covered by the new joint venture to enable higher speeds and better service standards.
Historic joint venture in network construction
This is the first ever joint venture of its kind in network construction in Finland. National communication policy also encourages the construction of joint networks, with the operating licences for the 800 MHz and UMTS/3G particularly specifying that joint construction is permitted.
“I am delighted about this opportunity to cooperate with Sonera in providing a high-speed comprehensive telecommunications network connections for northern and eastern Finland. The future cooperation in network construction will contribute significantly to enhancing the technical quality of network services in sparsely populated areas. In such a large geographic area, a mobile communications network is clearly the most reasonable solution for providing high-speed telecommunications links,” comments DNA CEO Jukka Leinonen, and continues:
“This contract is also particularly important in enhancing signal coverage in the areas involved, with the joint network bringing the addition of a large number of Sonera's current base station locations and masts to those of DNA. The agreement will also bring considerable cost savings, enabling us to construct the 4G network faster than the previously planned, separate networks.”
Both parties' 800 MHz frequency bands will be used by the joint network. This will facilitate the introduction of high-speed 4G mobile broadband network services to sparsely populated areas, and make a significant contribution towards building the information society and ever-improving services for citizens and businesses alike.
DNA and Sonera will cooperate in network construction but continue competing independently with regard to their products and pricing models in the areas involved. The majority of the Finnish population, 85 per cent, will continue to remain in the areas covered by both parties' separate mobile communications networks.
Suomen Yhteisverkko Oy's operations and decision-making will follow the principle of unanimity. DNA owns 49 per cent and Sonera 51 per cent of Suomen Yhteisverkko Oy shares. Antti Jokinen (38), M.Sc. (Eng) has been appointed CEO for Yhteisverkko Oy. Mr Jokinen was previously Director, Head of Networks at DNA Ltd.
Press conference:
We will be holding a joint press conference today at 10 a.m. in the Freda meeting room at Hotel Scandic Simonkenttä (Simonkatu 9, Helsinki), which you are welcome to attend!
Further information:
DNA Corporate Communications, tel. +358 44 044 8000, viestinta@dna.fi
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