Romania awards 3G license

January 10, 2007

The General Inspectorate for Communications and Information Technology (IGCTI) in Romania has awarded the third 3G license to RCS & RDS after they paid the first chunk of the frequency spectrum tariff worth 10.5 million dollars.

"All commitments that RCS & RDS assumed at the contest will turn into obligations. That means better 3G services for the end users and a more competitive market", said Catalin Marinescu, IGCTI president.

The next five chunks of 4.9 million dollars each are to be paid by the operator every year-end, beginning with 2008. A 3G license costs 35 million dollars.

According to the task book RCS & RDS has to cover three development stages with the following deadlines: June 30, 2008, December 31, 2009 and December 31, 2011.

RCS & RDS and Telemobil (Zapp) were the winners of the contest organized in 2006 by IGCTI for awarding the last two 3G licenses. A license is valid for 15 years and may be extended by 10 years without any costs involved. The operator has to ask for the extension of the license six months prior to its expire.

Cosmote Mobile Telecommunications and Radiocomunicatii Radiocom SA also took part in the contest organized by IGCTI.

Vodafone Romania and Orange Romania are the first 3G operators on the Romanian market. Vodafone Romania estimated 250,000 clients at the end of December 2006. Orange Romania estimated a number of 250,000 EDGE and 3G users at the end of 2006.