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Mobile price war in Sweden costly for operators

Wednesday, 28 March 2012
Swedish Mobile operators, Tele 2 and three are at war right now for new customers through two subscriptions that give customers half price. This has meant that it sold more subscriptions than usual.

The two operators do not want to tell you how many subscriptions they sold, but according to sources, this is nearly 150,000, which in this case is nearly a billion in lost revenue, according to Swedish business daily, Dagens Industri.

For Tele 2, an increase in customers also means that it is forced to expand its network capacity.
In the long term analysts believe that the sharp decline may lead to a permanent price pressure, which would ultimately be very costly for the operators.
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