[ad_1]
“The reason we are abandoning Huawei is the political situation. We felt that now was the right time to do so, because Ericsson is a good strategic partner,” said Dan Stromberg in an interview with BNS.
It states that Telia is now fully ready to enable commercial 5G connection in Lithuania. All that is missing is a frequency auction.
The director of Telia Lietuvos, who recently became a vice president of the Telia Company and is also responsible for Estonia and Denmark, says he will continue to focus on Lithuania.
It also makes no secret of Telia’s efforts to gain control of the Latvian telecommunications company Tet and strengthen its fixed and mobile businesses, but Telia’s ambitions are being stifled by the Latvian government, which controls 51 percent. Tet shares.
– You have recently become Vice President of Telia Company Sweden. There have been many changes in the management team of the company, including a new CEO. Is Telia Company stronger after these changes?
– I think so. We have a more focused agenda – we’ve narrowed down the areas we focus on and are now focusing more on customers. I also appreciate the fact that there is more diversity in the new leadership – there are both new and old people. This is a good variety. I also really like the view from Allison (Telia Company CEO Allison Kirkby – BNS).
There are many investments that must be made in the coming years. We also need to monetize these investments.
– Is Telia’s corporate structure in order and can the new management now fully focus on future challenges?
– Yes, and I would say that now we are much more focused on individual countries. This is pretty clear.
– What would you highlight as the main challenges and objectives of the group?
– The challenge is digital transformation first. You also need to invest in a 5G network, and then a fiber optic network. There are many investments that need to be made in the years to come. We also need to monetize these investments.
– How does promotion change your role in the company? Perhaps now that you are responsible not only for Lithuania but also Denmark and Estonia, you are focusing more on a more global vision and delegating day-to-day operations more to local leaders?
– I’m still in Vilnius, I’m still the CEO of Telia Lietuvos, but of course my management team needs to stretch to free up time. I have strong executives in Estonia and Denmark, but I also have to take responsibility for Telia Company, so I have to look more broadly. I think this is a good balance: bringing the day-to-day operations down to the manager level, but at the same time being on the spot (in Lithuania – BNS).
– How do you distribute your time now? How much do you spend in Lithuania?
– Of course, I spend a lot of time here. I dedicate about 60 percent to Lithuania. your time, then 20 percent. Telia Company, and the rest for Denmark and Estonia.
Josvydo Elinsko / 15min nuotr./Danas Strömbergas
– How did the coronavirus pandemic affect Telia? We are seeing a marked increase in mobile data usage, with people calling more friends and family due to social distance requirements. But has your company felt the negative aspects of a pandemic?
– The pandemic showed the need for a good quality infrastructure. We have it in Lithuania, so what we accept as a gift, that we can work, learn from home, cannot even be dreamed of, for example, in Italy or France. Therefore, as the pandemic has shown, a quality network is essential.
We are seeing an increase in demand not only for mobile services but also for fixed services: good WiFi, good fiber. We are seeing an increase in internet traffic, an increase in television viewing, and a demand for video content.
The pandemic demonstrated the need for good quality infrastructure.
Negative: the roaming part has practically disappeared. We are one of the most important players in this field. But when we look at tablets, movies, televisions, and personal computers, we’re pretty much on the same level as last year. It seems that instead of spending money on trips abroad, they spend money on things at home.
– Did the pandemic affect your financial results? Telia Lietuvos’ revenues grew 3% in three quarters, but without the pandemic, would the growth have been higher?
– Yes, the growth had to be higher. It’s hard to say how much, but it would be greater because the impact of roaming, especially from a business customer perspective, is huge. However, I am very satisfied with the results this year; we are doing much better than last year.
It seems that instead of spending money on trips abroad, they spend money on things at home.
– In November, the value of Telia Lietuvos exceeded one billion for the first time. euros. How important is it that it is the second largest company in the Baltic capital market?
– It is important to me because it shows confidence in what we do, as well as in the management. Stock price dynamics also show that people believe we will be able to achieve long-term goals. Of course, this also means that it is easier for us to borrow at a good price.
If we look at telecommunications stocks in Europe in general, their price is more or less stable. However, we emphasize stability in our work, I think that is rewarded.
Josvydo Elinsko / 15min nuotr./Danas Strömbergas
– A decisive rally that reached one billion. On November 10, news broke that Telia had switched to 5G in test mode at certain locations in major cities. Why did you decide to test the new connection now, before the frequency auction took place and 5G began to operate commercially, and do you think this solution was a success?
– Now is the time to invite customers for a full test so we can draw some conclusions about what consumers and businesses need when we launch commercial 5G. This was one of the reasons we built test stations both in the Klaipeda Free Economic Zone (FEZ) and in Vilnius and Kaunas.
RRT also wanted to know if there would be interference from the Russian-occupied Königsberg frequency bands. We have no problems with Poland or Belarus, but Russia has created problems that we must solve.
– Currently, there are basically two different poles of Internet development: fiber optics and mobile Internet, 5G. Is it possible to develop both fiber and 5G at the same level at the same time? Do you prioritize any of these directions?
– I don’t think we have fiber everywhere, so in those places, you could say that 5G will act as a supplement, we are talking about 5G narrow band. I think these technologies will complement each other, but 5G will not displace fiber. It is not possible to create such a density of 5G stations.
Also, I think it is important, even if you are building 5G networks, you need fiber to connect the base stations; otherwise it won’t work. We will continue to invest in fiber, that is our promise. My dream is to have the same internet speed when I travel, both at the office and at home. And that puts even more pressure on us to have good WiFi solutions.
I think these technologies will complement each other, but 5G will not displace fiber. It is not possible to create such a density of 5G stations.
– In early November, it announced a strategic partnership with Ericsson for the development of 5G in Lithuania. Explain what it means and what benefits you expect.
– First of all, it means that we will change the current 4G base stations to Ericsson. We will use Ericsson for 5G development; it can be said that in the future there will be an antenna, a station for 4G and 5G communication. This literally means that we will change about 2 thousand. base stations.
– Basically, does this mean that Huawei will not be on their 4G and 5G networks?
– If right. The reason we are abandoning Huawei is a political situation. We thought it was the right time to do it, as Ericsson is a good strategic partner. We work with them both in Sweden and in Estonia.
– A couple of years ago, the narrative on 5G equipment was that Huawei’s equipment is the most advanced, despite all the risks associated with this company and the extremely strong US focus on it. Has this changed in recent years, perhaps Ericsson and Nokia have caught up?
– We are very satisfied with the quality and support of Huawei equipment, so there is nothing to complain about. But it is as it is. We deliver on our promises, we comply with regulation, and that is why we feel that now is the right time to change.
The reason we are abandoning Huawei is a political situation.
The beauty of Ericsson equipment is its much lower power consumption, so it is also good from a sustainability perspective. We believe that Ericsson equipment is of the highest quality in certain respects.
– Do you see economic logic and value in this decision?
– It’s a combination. During such technological changes, this is normal. We can remember when we switched to 4G; Until then we had Motorola and Nokia, when 4G came around, we switched to Huawei.
– What is the current situation regarding the commercial activation of 5G in Lithuania? Is Telia basically on the starting line waiting for the frequency auction?
– I do not know the situation of our competitors, but I can say that we are prepared. When the auction takes place, we assume it will be in the first quarter of next year, we will start activating the next day. Planning in itself is quite a difficult job and we are at that stage. Planning alone usually takes about six months. So it was important for us to do a real test.
– At the end of 2018, it was announced that 5G could appear in Lithuania already in 2019. Last year, the auction was expected to take place this year. Do you think that everything is going according to plan and the fact that the auction has not yet taken place is the only reason we do not have 5G yet?
– I think so. RRT does what it can, we can’t complain to anyone. They, like us, want to start. The only reason is the negotiations with Russia.
I do not know the situation of our competitors, but I can say that we are prepared.
We launched 5G in Finland in 2019, now we have launched it in Sweden, the time has come for Estonia, we are planning for Denmark. I think now is the time to have devices (compatible with 5G – BNS). There were no installations in 2018, there were a limited number last year, and 2020 was the year the installations appeared. Now you can have 5G on Samsung, Apple devices. If we look at Asia, there are a lot of devices there and they all support 5G.
– In Latvia, Telia has 49 percent. shares of the country’s telecommunications company Tet, which is still controlled by the state. You haven’t been able to take control yet, and Latvia is like a missing piece of the Baltic puzzle. Is there anything new in this area, maybe negotiations are taking place?
– I will be completely open; It’s no secret that we are putting a lot of effort into consolidation, because we own a majority stake in LMT, the mobile business. Tet is part of LMT fixed – mobile communication and of course we want to consolidate them, because we think it would be beneficial for Latvia. It is also no secret that the Latvian government is completely blocking this and I don’t see any positive signs.
– Thank you for the interview.
[ad_2]
