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Denmark gets ready for 3G auction

August 10, 2005

Following a successful auction in 2001, the Danish National Telecom Agency (subsequently the National IT and Telecom Agency) awarded four licences for the establishment and operation of 3G mobile networks. On the 31 January 2005, as a consequence of TeliaSonera's take-over of Orange in Denmark, one of these four licences was returned to the National IT and Telecom Agency (NITA).

On 11 March 2005, the political parties behind the agreement on telecommunications policy agreed to launch an auction of the available 3G licence and associated radio spectrum.

A consortium consisting of the UK based consulting firms DotEcon and Analysys Consulting has been appointed as advisors on the auction process.

NITA has published a Preliminary Information Notice providing initial details of the planned auction process and timescales. The Notice also includes an invitation to interested parties to engage with the National IT and Telecom Agency and the advisors during an initial 'market test' phase.

NITA intends to issue an Information Memorandum in November 2005 to interested parties who pre-register with NITA. This Information Memorandum will specify the terms of the licence, relevant legislative, regulatory and competition considerations, and details on the auction process. Recipient parties of this Preliminary Information Notice and other parties will be informed in due course of the mechanism for pre-registration of interest to receive the Information Memorandum. Also in November 2005, the Ministry of Science, Technology and Innovation will also issue an Executive Order, which will form the framework for the auction and licence issue by NITA. Prior to issuing the Executive Order, the Ministry of Science, Technology and Innovation will hold a public consultation on the Executive Order.

It is anticipated that in addition to the current 'market test' phase, NITA will undertake a formal consultation process with industry stakeholders on the Draft Information Memorandum, including the conditions of the auction and licence. The consultation on the Draft Information Memorandum will begin in early October 2005. A full timetable for the auction will be published on NITA's website, www.3g-auction.dk.

It is intended that the auction process will be concluded by the end of 2005.

 

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