Slovakia launch bidding process

date: January 22, 2002

The Slovakian government on Monday launched a tender to sell three WCDMA 3G mobile telephone licences for Sk1.5bn (US$35 million) each.

The modest fixed price for the licences reflects the disappointing results of UMTS tenders in the neighbouring Czech Republic and Poland and the failure of two previous attempts to attract a third GSM operator to Slovakia.

Globtel and Eurotel, the two existing GSM operators, are expected to bid, while candidates for the third licence to operate both GSM and UMTS frequencies are said to include TIW of Canada and Telenor of Norway.

Last September, Slovakia's economic ministers approved the proposal for a joint GSM and UMTS license tender. The third license will provide the successful licence bidder with the GSM 900, GSM 1800 and UMTS bands. The government, which hopes to close the tender by H1 2002, has set a minimum price of SKK1bn (EUR23.1m) on the three-band license.

The new provider could start operations in the second half of 2002 after the exclusivity for mobile services held by the current two operators expires next July.

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