control by the blessing of the state. Phase 2 The emphasis is on the local loop also known as the "last mile". The aim is to introduce competition gradually but maintain some monopoly to deter entry into the market. Telia AB was not required to undergo a horizontal split. "It was and is the largest provider of both cable TV and mobile telecommunication". Several instances prevail to break up the company but that state does not approve. It continued to keep the company as a parastatal, and the incumbent continued to maintain a monopoly in the market. The main area of concern during Phase 2 is the issue of interconnection. Before the Telecommunications Act of 1993, the parastatal, could dictate its own terms, but after 1993, Telia was told to negotiate with companies seeking interconnection. Phase 3 During the period of 1993-2000 there is rise in competition with legislation of the regulatory body being changed several times. In the case of the POTS, Telia in 2000 still held monopoly in the fixed-line access market. Whereas, mobile phone and Internet penetration in the household market ended up being one of the highest in the world with more than 50 percent of the revenue coming from these two industries. There were three major organizations providing GSM services and 120 internet service providers. One of the major causes that lead competitions thrive in areas that did not have a history of monopoly was the light handed approach taken towards the interconnection issue by the regulatory body initially. Telia held very high interconnection charges, making it very difficult for new entrants to enter. But what it did do was push the new entrants to enter other markets. Tele2 did just that by taking out a massive marketing campaign to attract a huge number of customers to its internet access service. This campaign was successful enough to bring back Telia to the negotiation table over the interconnection issue . This process eventually lead to the abolition of the light handed regulatory approach towards interconnection and put more power in the hands of the regulatory body. The intensity of regulation kept increasing around 1999 in areas other than POTS, especially the mobile market. Telephones main lines in use: 5.014 million (2009) mobile cellular: 10.65 million (2009) general assessment: highly developed telecommunications infrastructure; ranked among leading countries for fixed-line, mobile-cellular, Internet and broadband penetration domestic: coaxial and