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Denmark gets ready for 3G auction

date: June 15, 2001

The Danish government said on Thursday, it is to offer four 3G licenses on 5th September with the minimum fee set at DKr500 million ($57.2 million).

The four winners will be required to pay 25% of the license fee on issue, with the remainder distributed over the next ten years.

The government hopes this method will encourage smaller companies to bid for a license and new entrants to the Danish market.

The winners of the four Danish 3G mobile licences will only be able to share the heavy costs of building 3G mobile networks in rural areas, said the government ministry.

"The final coverage obligation in respect of solely-owned networks has been defined as 80 percent of the population by the end of 2008,'' Denmark''s IT and Research Ministry said to the press. The decision means licence winners looking to reduce the costs of building the networks will only be able to share their resources in areas representing 20 percent of the population.

"Each operator has to own and control its network,'' said executive director James Vaux of N. M. Rothschild & Sons, the Danish government's 3G mobile phone advisers. "Joint-ventures or special network companies are not a possibility,'' he said.

Vaux said Denmark wanted competition at the network level to secure fast roll-out of networks and low prices for customers.

The following companies had shown interested in the bidding war: TDC, Sonofon, Telia and Orange.

 



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