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Facts

End date:
December 7, 2001

Total Licence Price:
$199.67million

Winners:
RadioMobil ($104million)
Eurotel ($95.67million)

CTO - Czech telekommunication office

 

Czech

last updated: January 30, 2002

January 30, 2002
The Czech cabinet agreed on Monday to delay awarding the third licence for 3G mobile phones until operators' appetite grows, Transport and Communications Minister Jaromir Schling said. He said that the third licence would be awarded with the same conditions as the first two, granted last year.
   
January 22, 2002

The Slovakian government on Monday launched a tender to sell three WCDMA 3G mobile telephone licences for Sk1.5bn (US$35 million) each.

The modest fixed price for the licences reflects the disappointing results of UMTS tenders in the neighbouring Czech Republic and Poland and the failure of two previous attempts to attract a third GSM operator to Slovakia.

   
December 7, 2001
Two Czech mobile phone operators bid above expectations for 3G licences, fair value according to analysts but only about half what the government had hoped for when the process started last year. The Czech Telecommunications Office (CTU) said on Friday that RadioMobil bid 3.861 billion crowns ($104 million) for a licence. Its competitor Eurotel bid 3.535 billion Czech crowns ($95.67 million), a touch above the state's minimum of 3.5 billion crowns which was halved after unsuccessful first round in September.
   
December 3, 2001
Both Eurotel and RadioMobil entered the license contest, but Cesky Mobil refrained from entry saying that the minimum bid price was too high. The Czech government set the minimum price for the sealed bid auction of three licenses at CZK3.5bn (EUR106m), reducing it from CZK6.67bn (EUR202m). The winners are expected to each pay CZK1bn (EUR30m) straight away and then the rest in annual payments over 10 years, plus interest.
   
November 15, 2001
The Czech Republic's Telecommunications Office (CTU) has said that it will ask the government to specify the reserve price for its 3G licenses by November 24th, ahead of the November 30th deadline for bids in the auction. The three incumbent networks have already refused to pay US$177 million in an earlier attempt to sell the 3G licenses.
   
November 5, 2001
The Czech Republic Telecommunications Office has said that interested parties have until November 30th to submit sealed bids for the three available 3G licenses in the country. The regulator will detail the reserve price at least four days before the deadline. This is the third attempt to sell the licenses after the three incumbent GSM license holders declined to take part in previous auctions.
   
October 30, 2001:

All three Czech mobile operators said on Tuesday they would not participate in the repeated first round of a process to allocate third-generation mobile phone licences, citing high price and other tough conditions.

The country's leading operator Eurotel, a joint venture of Verizon Communications and AT&T Wireless, declined to say if the refusal automatically means it would enter the second round of the process, an auction.

The other two operators, Deutsche Telekom's RadioMobil and TIW unit Cesky Mobil, said they would also not bid in the first round. Cesky Mobil said it would enter the auction, slated for November.


October 15, 2001:

The Czech government has announced on October 15 that it will approach the country's three mobile operators this week with an adjusted set of conditions for awarding 3G mobile phone licences. In the new proposal there are certain changes that are meant as a compromise between the original plan and the mobile operators' offers. No further details were disclosed. Unclear costs of a UMTS licence has been one of many question marks surrounding the privatisation of the country's dominant telecoms firm Cesky Telecom.


September 25, 2001:

The Czech government has revealed that it will now be issuing just three next-generation mobile licences instead of the four which it had originally planned. The authorities have been forced to alter the terms of their 3G spectrum sale after only three companies registered an interest in the concessions, with one of these - Cesky Mobil - still unsure whether or not it will proceed with its bid.


September 10, 2001:

The Czech cabinet is set to review methods of reviving the disappointing tender for 3G mobile phone licences. Prime Minister Milos Zeman stated that they would be considering all options, including cutting the price of the licences or postponing the sale. The government had earlier believed that it might receive E584.4bn in revenues from the sale of three or four of their UMTS licences. The little interest the auction has received, however, has left the government in doubt of reaching its target.

So far, only RadioMobil and Eurotel have made a bid for the Czech licences worth E195.7m.


June 26, 2001:

The Czech telecoms regulator CTU will call a tender on Friday for four licences to operate UMTS mobile telephone networks.

It plans to offer three licences to the current operators of GSM mobile phone networks. It plans to auction the fourth, plus any of the other three if current operators refuse to pay a fixed fee.


14th Feb 01:
The Czech government said it will sell four third-generation mobile phone licences at five billion crowns ($135 million) each.

25th Jan 01:
The Czech Telecoms Office (CTU) has proposed to sell UMTS licences to the country's existing GSM operators for Kcs5bn ($135m) each, and offer a fourth licence in an auction. The licences would be sold in a two-round tender. The existing operators, EuroTel, RadioMobil and Cesky Mobil, would take part in the first round. If some of the three licences are not sold in this round, they would be offered in an auction together with the fourth licence.

 

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