Poland could cancel auction

date: 01 December 2000, source: South Post

The number of entrants expected to enter the Polish auction is currently dwindling. It seems that most bidders will wait to see whether Telefonica enter the bidding before making a decision. The bidding for five licenses is scheduled to start on Saturday December 2nd.

Uncertainty and constant changes to the auction procedure have caused potential bidders to think twice before entering. Foreign bidders are also wary, as the rules state that the entrant company must be majority owned by Polish interests. Analysts believe the whole success of the auction lies on Telefonica's decision to bid or not. If they do, the three incumbents - PTC, Polkomtel and Centertel - will feel obliged to follow, if Telefonica abstain from bidding, the auction could just collapse. Surprisingly, the incumbents would rather the auction folded, as due to legal reasons, it could not be restarted until 2002.

A Telefonica spokesman has confirmed that Telefonica believes that the market is attractive to them with a penetration rate of 14 per cent, and has talked to local companies, but has still not made a decision.

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