All big three pulls out of auction in Czech

date: October 30, 2001

All three Czech mobile operators Eurotel, RadioMobil and Cesky Mobil, said on Tuesday they would not participate in the repeated first round of a process to allocate 3G mobile phone licences, citing high price and other tough conditions.

The decisions were in line with expectations and deal another blow to the government hoping to use 3G proceeds to fill budget gaps.

The Czech 3G aution was suggested to be excessive in price and unspecified regulatory issues were also seen as an obstacle

The government hoped that all three operators would enter the auction, slated for November.

Early this month, the Czech government made few changes to the license award conditions to attract the interest of the only operator not have to submitted an application, Cesky Telecom. The government said that it would stand fast and not change conditions significantly. "This [proposal] will the best they can get. The current operators will be sent a last offer and they can take it or leave it," said CTU Chairman David Stadnik. "It will be a compromise between the initial proposal and the comments of the operators." The deadline for applications has been set as the end of October.

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