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Telefonica Moviles sells 3G company to Mobilkom Austria

December 28, 2003

Telefonica Moviles and mobilkom austria have reached an agreement by which mobilkom austria has acquired 3G Mobile Telecommunications GmbH, the Austrian affiliate of Telefonica Moviles and owner of a UMTS mobile telephony license.

The transaction marks the first sale of UMTS spectrum in Europe and as such could point the way to future agreements between operators.

The sale has already received the approval of RTR GmbH, the Austrian regulator. In accordance with Austrian legislation, mobilkom austria has agreed to sell part of the 9.8 MHz. spectrum before 31 January 2005. As a result, mobilkom austria will in the long term have at least 14.8 MHz. of UMTS-spectrum, enabling it to have an efficient and cost-effective UMTS network whose beneficiaries will be the Austrian mobile phone users.

Following its acquisition, 3G Mobile will continue to function as a self-contained unit of mobilkom austria, which as owner will assume all of 3G Mobile's obligations arising from ownership of the UMTS license.

Telefonica Moviles obtained a UMTS license in Austria in the auction process held by the Austrian government in November, 2000. Subsequently, in July 2002, Telefonica Moviles announced the decision to redefine its operations in Austria, given the delay in the availability of UMTS technology. In parallel, the company carried out a complete writedown of the assets of 3G Mobile and provisioned for its restructuring costs.

 


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