Belgium 3G License Auction To Start In Early March

date: 21st December 2000, source: http://www.bipt.be

The auction for Belgium's third generation mobile telephone licenses is seen starting in early March following the expected approval of key legislation today, a Telecoms Ministry spokeswoman said Thursday.

The government hopes to raise $1 billion to $1.5 billion by auctioning the licenses in a small but growing market for mobile telecommunications. Belgium has a population of 10 million.

Belgium had been expected to start its auction for four Universal Mobile Telecommunications System, or UMTS licenses, in mid-December, but legislative hurdles delayed the process.

The Belgian Senate is expected to pass two measures on national roaming and site-sharing provisions, which the government decided should be subject to law, rather than royal decree, spokeswoman Elke Jeurissen said. The Belgian Chamber of Deputies already passed the measures last week.

The two provisions are part of the so-called "program law," which is on a fast-track in Parliament because it concerns legislation for the 2001 budget.

Following the Senate's approval, the Belgian Institute of Postal Services and Telecommunications, or BIPT, is expected to post details of the auction's procedures on its Web site.

The details will be sent out to all interested operators, which will submit their official candidacy for the auction in mid-January. The candidates will then have six weeks to present their business plan to the BIPT and the auction should begin in late February or early March.

All three current mobile phone operators - Mobistar SA (B.MSR), Proximus, controlled by fixed-line operator Belgacom SA (B.BCM), and KPN Orange Belgium NV - have expressed interest in the auction.

Last week, KPN Mobile Chief Executive Diedrick Karsten said Hutchison Whampoa Ltd. (H.HUW) is a possible 3G partner for KPN.

French utility Suez Lyonnaise des Eaux (F.SZE) and partner Telefonica (TEF) of Spain are also considering bidding. Other possible contenders include Canada's Telesystem International Wireless Inc. (TIWI) and Vivendi SA's (F.VVN) SFR unit of France.

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