Swedish Telia unit disputes awarding of Polish UMTS licences

date: 15th December 2000, source: Yahoo

Netia, a Polish telecommunications company controlled by the Swedish operator Telia, protested on Thursday against the awarding of three next-generation UMTS licences to the three incumbent Polish mobile operators.

The leading private fixed-line operator in Poland, Netia has sent a letter requesting Poland's telecommunications minister to halt the awarding of the licences and launch a new tender, according to a company press release quoted by PAP news agency.

The Polish telecommunications ministry cancelled on December 6 a tender for five licences for Universal Mobile Telecommunications System (UMTS) services, which allow fast Internet connections for mobile telephones, after only the three current operators had submitted bids.

The ministry decided instead to award UMTS licences to the three GSM (Global Standard for Mobile) operators at the same fixed fee of 650 million euros (575 million dollars) set in the tender, and said it might distribute a fourth licence in 2002.

Netia, which is 48-percent owned by Telia, had decided not to bid for a UMTS, citing the unfavorable and constantly changing tender terms.

Several other international operators, including Telefonica of Spain and Hong Kong-based Huchinson Whampoa, also decided not to submit bids owing to the tender conditions.

As an alternative, Netia proposed the telecommunications ministry consider awarding it a UMTS licence under the "much more advantageous conditions" now being offered to the GSM operators.

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