Swedish telecommunications were revolutionized by the 1993 Telecommunications Act.  When this act was introduced in 1993, Sweden became among the first countries in the world to open the telecommunications market to competition.  During the past five years this has led to an extraordinarily dynamic development of the market, with many new operators, new services and lower prices.  

Revision of the Telecommunications Act - 1997  

However, the Government found it necessary to review the 1993 legislation and revise the regulations in 1997.  One aim is to ensure that all operators are treated in a more competitively neutral manner, for example a review has been conducted on the rules of interconnection. Another important reason for the Government review is the liberalization of the EU telecommunications markets that was scheduled to occur as of January 1st of this year.  (Source: Review of the Telecommunications Act) 

Liberalization  

In the revised Telecommunications Act as of 1 July 1997, the Government proposed that the primary telecommunications policy objective should remain unchanged.  This objective states that all organizations and individuals should have access to efficient telecommunications at the lowest possible cost to society. At the same time, subsidiary objectives are made clearer.  Among other things, telephony services should be delivered to all users at an affordable price, and citizens should have access to telecommunications services on equal terms.  

So far, telephony prices have been regulated by means of a price cap, which has only applied to Telia.  The Government now proposes a general regulation which applies to all dominant operators. The new price cap covers subscription fees and other fixed fees linked to the subscription. Fees may not be raised at a faster rate than overall price development, represented by the retail price index.    

Agreement Between Telia and the Government 

As a portion of the corporatization of Telia, the state and Telia signed an agreement specifying terms of operation.  The agreement aims at securing temporarily, during the initial phase of liberalization, the some basic state-defined objectives for future telecom policy.  Portion sof this agreement are directed at ensuring universal access to citizens. 

The National Post and Telecom Agency has been appointed by the government fo supervise compliance with the Telia-government agreement.  This Agency is in charge of future regulation within the telecommunications sector. (Source: Modern Telecommunications For Everybody)