Telecompany 3 has spent DKK 2.5bn (USD 525m) expanding its 3G mobile network in Denmark since it entered the market four years ago. Now the three other telecompanies with 3G licences in Denmark, TDC, Telia and Sonofon, are entering the market and according to financial daily newspaper Børsen, they will each have spent DKK 2bn (USD 420m) on mobile broadband by the end of 2008, making total investments in 3G mobile network in Denmark amount to over DKK 8bn (USD 1.7bn).
Morten Christiansen, managing director of 3 commented to Børsen that the company's entire investment in Denmark is in mobile datanets, and that the major investment "is now behind us". By the end of this year, 3 will offer a new mobile broadband product with a top speed of 21 MB/s. The company has 96.4% of the total mobile data traffic in Denmark, a share that will decrease as the other 3G licensees enter the market.
John Strand, director of Strand Consult, cautions against comparing the investments of the four telecompanies. "3 has been out early and a lot of their equipment has been expensive to buy. TDC on the other hand needs to invest a lot in capacity since they have more than two million customers on their mobile net, " says Strand.
Industry experts have told Børsen that they expect 3, TDC, Telia and Sonofon, to increase their advertising budget on mobile broadband tenfold in 2008 to around DKK 200m (USD 42m), a figure that corresponds to the total advertising budget of Carlsberg, Tuborg, Coca-Cola, Royal-øl, Pepsi and Faxe Kondi.
"Up to 40% of the telecompanies' total media investments will be on mobile broadband this year, says Mads Bredal, managing director of media agency Carat. "It is now the major consumer campaigns are coming."
This week Sonofon is advertising on the front page of the free newspapers with the punch line 'save paper, read your newspaper online', offering mobile broadband for DKK 199 (USD 41.8) per month.