Tele2 Invests 3.7 Million Euros to Modernize Mobile Network Core

Multiservice operator Tele2 has allocated €3,7 milj. toward upgrading its core mobile network switching center to maintain stability under peak loads and clear the runway for advanced enterprise data services, the company reported.

Upgrades Target Central Switching Infrastructure

  • Capital Allocation: The €3,7 milj. core investment runs parallel to a broader 27 miljonu eiro infrastructure overhaul concluding across the company’s network footprint.
  • Network Architecture: Upgrades target the central switching infrastructure—described by technical leadership as the network’s brain—to process simultaneous data and voice routing with lower latency.
  • Commercial Impact: The expanded core capacity directly positions business clients to deploy next-generation technological solutions requiring rapid response times.

Core Switching Infrastructure Expansion

The core mobile network switching center functions as the central routing engine for every live voice call and packet data session across the operator’s infrastructure. According to the company, this latest €3,7 milj. injection feeds directly into a wider 27 miljonu eiro network modernization initiative that spans the entire country. Over a four-year operational window, the company has updated nearly every base station in its footprint. Technical deployment continued at a swift pace through the first nine months of 2026, adding 39 new base stations and upgrading 111 additional sites across regional markets.

“The mobile network infrastructure switching center is the heart and brain of our entire setup, managing every call and data session in real time,” said Līga Krūmiņa, technical department director at Tele2, in the company’s operational release. “Technology evolves at an incredible speed, and soaring data volumes demand smarter, more flexible solutions.” Krūmiņa noted that network performance depends just as heavily on the processing capacity and software execution speed of intermediate routing nodes as it does on raw base station power.

Decommissioning Legacy Frequency Bands

A primary catalyst for the current capacity gains was the deliberate phase-out of the legacy 3G network. Over an 18-month execution window following that technological retirement, engineers reallocated the freed 900 MHz frequency spectrum to reinforce the high-speed 4G layer, as the company detailed.

Engineering teams are currently shifting focus toward targeted capacity lifts in micro-markets experiencing acute data demand surges, alongside targeted coverage expansions in underserved commercial corridors.

Financial and Operational Metric Reported Value Period / Context
Core Switching Modernization Investment €3,7 milj. Announced
Total Network Modernization Outlay 27 miljonu eiro Four-year cumulative program
New Base Stations Installed 39 units First nine months of 2026
Base Stations Modernized 111 units First nine months of 2026
Annual Revenue 186,101 miljona eiro Full-year 2025 (+3.4% YoY)
Annual Net Profit 58,469 miljonus eiro Full-year 2025 (+10.5% YoY)

Operating Entity Generated Revenue Expansion

The network investments arrive atop a resilient balance sheet. The operating entity generated 186,101 miljona eiro in revenue during 2025, representing a 3.4% expansion year-over-year. Net earnings outpaced top-line growth, climbing 10.5% to reach 58,469 miljonus eiro. Registered in November 1995 with a share capital of 3,486 miljoni eiro, the Latvian business remains a wholly-owned subsidiary of Sweden’s Tele2 Sverige.

Lower data transmission latency and steady throughput under heavy concurrent loads provide the necessary foundation for next-generation technological solutions. As enterprise bandwidth consumption scales upward, the newly modernized central switching architecture ensures routing bottlenecks remain suppressed.

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Daniel Foster - Senior Editor, Economy

Senior Editor, Economy An award-winning financial journalist and analyst, Daniel brings sharp insight to economic trends, markets, and policy shifts. He is recognized for breaking complex topics into clear, actionable reports for readers and investors alike.

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