Hutchison May Enter Poland Anyway...

May 11, 2005 - source: BWCS

Following the award of a block of 3G frequencies in Poland to local fixed line operator Netia, the Polish telecoms regulator URTiP has said that Hutchison Whampoa may still be able to set up a mobile network in the country.

On Monday of this week it was announced that Netia had beaten Hutchison and current mobile operators Polkomtel and TPSA in a bid for new 3G spectrum in Poland. However, it has since emerged that Netia may refuse to take up the frequencies after a second and separate tender for GSM spectrum was cancelled.

Should Netia decide not to go ahead with its purchase of 3G spectrum, the URTiP says that Hutchison is well-placed to step in. According to the head of the regulatory body, Witold Grabos, Hutchison won the next highest amount of points in the contest, after Netia, and should the latter step down then the frequency block should be offered to the Hong Kong based conglomerate.

The disgruntled fixed line operator has been given one week to file a formal request saying that it will go ahead with the 3G spectrum purchase. The company's CEO has said that he will consult with investors and shareholders before moving forward. It will certainly cost the company more if it plans to build a national network based solely on 3G frequencies and without any GSM coverage at all.