TDC to launch UMTS quickly and smoothlessly

date: September 20, 2001

Today, TDC was awarded one of four Danish UMTS licenses. The license will be used for quick and smoothless introduction of high-speed mobile services in Denmark.

”We are very pleased to have obtained a UMTS license. This ensures that we can offer our customers completely new ways of using mobile services and products in future,” says Henning Dyremose, TDC’s President and CEO, and continues:

”Actually, we have already established the foundation for the new mobile services – and thus also UMTS – by means of GPRS, and we have also developed data services for this.”

The price of the Danish license is DKK 950m, corresponding to DKK 178 per inhabitant. 75 percent of this amount will be paid in installments over a period of ten years. Because of the installment profile, TDC’s actual payment obligation only totals DKK 657m, which corresponds to DKK 123 per inhabitant. This price is far below the prices paid in Germany and the UK. The license is awarded for twenty years. The license places TDC under an obligation to establish coverage for 30 percent of Denmark’s population in 2004 and 80 percent in 2008. If commercially viable, TDC will establish coverage quicker.

”In TDC’s opinion the auction approach is not the best way to allocate licenses. This has led to major problems for telecommunications companies on several key markets in Europe, where the companies are now in so much debt that it delays the introduction of the new mobile services. TDC also finds that the Danish authorities have failed to use an appropriate auction form in connection with the allocation of the licenses in Denmark. But since this approach was chosen anyway, we have played by the rules and been awarded a UMTS license in Denmark at a price that, in a European context, must be deemed fair. This license combined with our leading position within mobile services in Denmark has afforded us a valuable platform that we intend to use to gradually introduce state-of-the-art services to our mobile customers,” states Mr. Dyremose.

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