FYI News
Switzerland Auctions First Local Wireless License (Update2)
By Catherine McLean
Switzerland Auctions First Local Wireless License (Update2)
(Updates with winner from first paragraph.)
Bern, March 8 (Bloomberg) -- United Pan-Europe Communications
NV, Europe's second-biggest cable company, won a national license
for local wireless phone services today, the first to be auctioned
by Switzerland's Federal Office of Communications.
The office is auctioning three national licenses and five for
each of nine regions within the country. It will sell one license
each working day until May 16. United Pan-Europe won the first
license with a bid of 120.8 million francs.
Wireless technology offers phone operators a way to provide
voice and data services directly into homes and offices while
bypassing the copper wires used by local fixed-line carriers.
Although the Swiss telecommunications market was liberalized in
January 1998, the phone lines connecting households to the local
exchange -- the so-called ``last mile' -- have yet to be opened
to competition.
``From my point of view it's less of a menace (to Swisscom)
than cable connections,' said Alexandre Pasini, an analyst at
Lombard Odier & Cie.
Pasini added that the companies winning the new licenses may
face resistance from the Swiss population to building new
antennas. Companies bidding for wireless local loop licenses,
include Diax AG, MCI WorldCom Inc., EUnet/KPNQwest NV, Mannesmann
ipulsys, Primus Telecommunications Group, Sunrise Communications
AG, United Pan-Europe Communications NV. Swisscom, Switzerland's
largest telecommunications company, will not be participating in
the auction.
Wireless networks use point-to-multipoint technology,
allowing a single antenna to send and receive transmissions
carrying voice, data and video information to and from numerous
buildings. Small shoebox-shaped antennae placed on the side of
buildings receive the signals, then route the data through phone
wires already installed inside.
The office also plans to hold an auction in the third quarter
of 2000, awarding four national licenses for the new so-called
third-generation mobile phone technology, which is due in 2001.
That system will be operational in 2002.
Switzerland's Federal Communications Commission has voiced
its support for the liberalization of the ``last mile' which
would require Swisscom to allow rivals to buy or lease access to
phone lines connecting homes to the local exchange.
Swisscom shares fell 9 francs, or 1.3 percent, to 686 on the
Swiss Exchange. The shares have gained 6.5 percent this year, the
second-worst performer in the telecommunications sector in the
Bloomberg 500 Index. |
