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Dutch 3G Operators Seek Concessions

January 22, 2003 - source: BWCS

Two of the Netherlands’ five UMTS licensees are seeking a relaxation of 3G regulations to ease the financial burden of deploying next generation services. According to the Dutch business paper Het Financieele Dagblad both KPN and the Orange subsidiary Dutchtone are lobbying the government to extend the terms of their licences from 15 to 20 years. In addition the operators want to have the option of selling some or all of their UMTS spectrum.

The Dutch authorities are reportedly considering giving their backing to lifting restrictions on selling 3G licences but have stood firm on the licence period. KPN and Dutchtone have argued that 20 years has become the European norm for 3G licence terms and have requested that their franchises begin from the moment they launch services. The longer period will give mobile operators a better chance of recouping heavy investments in UMTS licences and infrastructure. A third 3G operator, Vodafone Libertel, is reported to be against any licence amendments.

The Dutch government awarded five UMTS licences in July 2000 raising US$2.5 billion. Alongside Dutchtone, KPN and Vodafone, licences were won by O2 Netherlands and 3G Blue, which backed by a consortium including T-Mobile and the Dutch GSM operator Ben. All licensees must achieve 84% population coverage by 1 January 2007 but are not obliged to launch services before then.

In September 2001 the telecoms regulator OPTA permitted 3G operators to share the cost of rolling out their radio networks through collaboration on the condition that they still competed with each other in the provision of services. However they cannot share frequencies or core network infrastructure. Dutchtone and Ben have accordingly formed a joint infrastructure partnership to reduce the cost of their 3G rollouts.

 


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