Czech mobile operators snub 3G bidding round
PRAGUE, Oct 30 (Reuters) - All three Czech mobile operators said on Tuesday they would not
participate in the repeated first round of a process to allocate third-generation mobile phone
licences, citing high price and other tough conditions.
The decisions were in line with
expectations and deal another blow
to the government hoping to use 3G proceeds to fill budget gaps.
The country's leading operator Eurotel, a joint venture of Verizon
Communications (NYSE:VZ - news) and AT&T Wireless (NYSE:T -
news), declined to say if the refusal automatically means it would
enter the second round of the process, an auction.
``The management came to this resolution mainly due to the excessive
price of the licence,'' Eurotel said in a statement, adding that a number
of unspecified regulatory issues were also seen as an obstacle.
The other two operators, Deutsche Telekom's RadioMobil and TIW
(Toronto:TIW.TO - news) unit Cesky Mobil, said they would also not
bid in the first round. Cesky Mobil said it would enter the auction,
slated for November.
Industry experts expect licences to be cheaper in the auction process
than they would be under any agreement struck in the first phase of
the process. There are three licences to be sold off and the incumbent
operators do not expect any outside rivals to enter the bidding
process.
The government has seen hopes of a windfall from the licences vanish amid the global slump in the telecoms sector, but still wants
to raise 10 billion crowns ($270 million) this year and further 10 billion over several years.
It originally required 6.67 billion crowns per licence to be paid this year, more than double what the operators saw as its present
value.
Czech Republic, with a population of 10.3 million, has almost six million mobile users, the highest percentage among the four
largest EU-candidate countries.
Email this story - Most-emailed articles - Most-viewed articles
More Quotes
and News:
AT&T Corp (NYSE:T - news)
Telesystem International Wireless Inc (Toronto:TIW.TO - news)
Verizon Communications (NYSE:VZ - news)
Related News Categories: ISDEX, telecom, US Market News
Help |
