Swedish alternative telco Tele2 yesterday launched an aggressive campaign in the UK fixed line market, aimed at becoming BT’s first serious competitor. The operator said it hopes to chip market share away from BT’s current main rivals NTL, Telewest and One.Tel, as well as from the PTO itself. Tele2, which provides services over Thus’ network, plans to offer calls up to 80% cheaper than those delivered by BT, providing customers with a single bill for line rental and call costs. The initiative, however, is dependent on both BT, which is required to process CPS requirements within 14 days, and Oftel, which is yet to draw up a wholesale line rental directive, meaning that for the time being at least customers will continue to receive a separate line rental bill from BT.
At the end of September 2003 Tele2 reported impressive financial results, with pre-tax profits of SEK685 million (USD88.73 million), up from SEK419 million a year earlier, with revenues rising by 22% to SEK9.4 billion (USD1.22 billion). At the same date it claimed a worldwide customer base of 20.4 million.