Romania announces last two 3G license winners

October 17, 2006

SC RCS&RDS SA and SC Telemobil SA are the winners of the contest organized by the General Inspectorate for Communications and Information Technology (IGCTI) for awarding the last two 3G mobile telephony licenses.

The two companies obtained the best scores after the evaluation according to the task book criteria. SC RCS&RDS SA gained 90.41 points and SC Telemobil SA 72.71 points. Cosmote Mobile Communications SA obtained 59.74 points and Radiocom SA 49.58.

"In the evaluation process the commission the task book criteria. It was a transparent process which involved professionals named by the Prime Minister Chancellery, the Ministry of Communications and Information Technology, IGCTI and the National Regulatory Authority for Communications", said Catalin Marinescu, IGCTI president. The specialists come from legal, technical and financial areas.

The evaluation process started in June when IGCTI launched the task book for public consultation. Six proposals helped improving the task book.

The most important task book criterion was geographical and population coverage (55 points) followed by technical feasibility (25 points) and financial capacity (10 points). The commercial feasibility, specialization and experience receive five points each.

The operators bids include their commitments regarding the population and the national roads coverage, services quality and number, data on launching, financial capability and commercial launching.

"The winners are to be awarded only after the first rate of 10.5 million dollars is paid in 120 days starting today", said Marinescu.

The next annual rates on amount of 4.9 million dollars each are to be paid every year till January 30, beginning with 2007. One 3G license worths 35 million dollars.

"If one of the licenses can not be awarded to the winner, from one reason or another, the next placed is to be awarded", added Marinescu.

IGCTI president explained that the task book set the mechanisms to check the compliance of the licenses winners` commitments. These commitments will turn into obligations.

If the conditions are not fulfilled there will be penalties. The task book sets the penalties as a percentage of the spectrum usage tariff of 35 million dollars.

"IGCTI is to set a warning period to comply with the obligations in case the license holder does not fulfill them. IGCTI may even suspend or withdraw the license", said IGCTI president.

The first 3G licenses owners in Romania are Vodafone and Orange. Vodafone Romania announced in September more than 230,000 3G services users. Orange Romania estimates 250,000 EDGE and 3G users by year-end.