Czech govt re-thinks plan to auction four 3G licences

date: 07 December 2000, source: Straits Times

The Czech government is considering a new plan for the sale of third-generation mobile-phone licences in the face of concern the sales next year may not generate as much money as planned.

A decision could be made as soon as next week, officials said.

As major European telecom firms earlier this year bid money hand over fist for UMTS licences, Czech officials had began to entertain thoughts of a flood of cash for their expected four licences, debating what to do with at least 20 billion crowns (S$886 million) in proceeds.

But the free-wheeling spending days of the telecom firms have ground to a halt and Finance Minister Pavel Mertlik told the press yesterday that the Cabinet will discuss a new proposal to sell three mobile-phone licences for a fixed price and one by auction.

The new plan scraps a previous proposal to auction all four, with the government already earmarking funds for state debt and investment projects.

'We have already signed the proposal with Communications Minister Jaromir Schling and it's in the configuration that three will be for a fixed price to current mobile operators and one other licence will be auctioned, he said.

However, he did not say whether the opposition ODS party had agreed to the proposal. ODS budget committee chairman Vlastimil Tlusty said he knew nothing of it and would not comment further

The ODS, which through an agreement to support Mr Mertlik's ruling CSSD party allows the minority Cabinet only limited room to move on key issues, has pushed strongly for the idea of running auctions for all four licences.

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