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ONE did not bid for more GSM frequencies today due to 3G

September 24, 2002

The focus of ONE (Connect Austria) is clearly placed on further developing the third mobile generation. The company did not participate in the bid for Austria GSM 900 frequencies ending today. ONE has the most GSM frequencies in Austria, population coverage and capacities are excellently developed.

ONE spokesperson Michael Sprinzl said, ”We are very well equipped with GSM frequencies, the future lies in the further rollout of 3G. For this reason, our primary interest consists in increasing the number of UMTS-enabled frequencies.” With 29 MHz for the high quality GSM 1800 network, ONE tops the ranking of Austrian mobile network operators even today. Additional GSM 900 frequencies could only be used sensibly in few areas, the effort for the bids is not worthwhile. Sprinzl: „We had asked for a free allocation of frequencies from the very beginning, moreover these should also be fit for UMTS.“

Create the conditions for an UMTS operation

In the long run the efficient operation of UMTS networks will require further frequencies. This is a challenge for both legislature and regulatory authorities to create the conditions for a well-functioning UMTS operation in Austria:

- The formulations in the draft of the telecommunications act to permit trading frequencies is basically viewed positively by ONE, they do, however, have to be considered further and still lack the finishing touch.
- A clear regulation as to the allocation of available frequencies is necessary. The Austrian situation and numerous international examples indicate that not all UMTS licenses are used.
- The rededication of GSM frequencies already awarded has to be re-considered in the medium term.

Clear mechanisms for awarding frequencies

Regulatory authorities have to create clear mechanisms for awarding existing frequencies anew which fall vacant because the licences are returned or no longer used. The completely exaggerated auctions of the year 2000 and their consequences show that several possibilities beyond merely auctioning off licences have to be considered. The discussion in other European countries already signals the necessity of establishing a harmonized procedure for all of Europe. This is, for instance, an issue for the newly established European Regulatory Authority, which will assemble starting from 2003 under the chairmanship of Austria.

 


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