Latvia Sets 3G Fees

date: June 13, 2002 - source: BWCS

The Latvian government has revealed that it will offer next-generation UMTS licences to the country’s two incumbent mobile operators for a fixed fee of LVL5.8 million (US$3.57 million) each. If, however, the two current operators, Latvia Mobile (LMT) and Tele2, decide not to bid, any spare concessions will be offered by auction. A third UMTS licence will also be sold in conjunction with a GSM concession, allowing a new entrant to come into the market and compete on an even footing with the incumbents. This combined GSM/3G licence will be sold for LVL7.6 million (US$4.67 million). Licences are expected to be awarded by September this year, with services due for launch by the end of 2003.

Latvia is currently home to around 700,000 mobile subscribers, giving the country a cellular penetration rate of 27%. The market leader, LMT, which includes Sonera and Telia among its shareholders, claimed almost 400,000 subscribers by mid-May. Sweden’s Tele2, meanwhile, is the sole owner of the other service provider, which until March 2001 was known as Baltcom GSM.

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