Czech Gov set 3G price one week ahead

date: November 19, 2001 - source: Siemens UMTS NewsDesk

The Czech telecoms regulator, David Stadnik, head of the CTU, has revealed that the minimum price for 3G licenses will be set one week ahead of schedule.

Stadnik is to announce the newly set minimum bidding level on the 24th November, a week earlier than the deadline of 30th November. The regulatory body's steering committee is now preparing the terms of a sealed bid auction following the refusal of the three incumbent operators to pay the price that was set when the licenses were offered exclusively to them.

Before announcing details, the regulator will first have to get the license terms, including payment terms and minimum price, approved by the government. The Czech government has requested that the CTU raises CZK20bn (EUR600m) from the auction.

The auction is open to all bidders, including new entrants to the Czech market. Bids will be evaluated by 7th December, with licenses being awarded by 15th December.

Last week, following the decision by the three incumbent operators not to enter the first round of the Czech 3G contest, the regulator, CTU, has said that it will now hold a sealed bid tender for the country's three licenses. The new tender will be opened to other companies and is expected to start on 30th November. The three incumbents all refused to meet the perceived high cost of the licenses at CZK6.7bn (EUR 200m). Companies that win a license must launch their services by January 1st 2005, in the city of Prague.

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