Romania Needs More Time For CosmoRom Decision

BUCHAREST -(Dow Jones)- Romania's government needs more time to asses the options for revamping CosmoRom, the ailing mobile phone unit of Romanian fixed-line operator RomTelecom, the country's new Communication Minister Zsolt Nagy said Wednesday.

He said the government is considering several proposals from companies interested in CosmoRom, including one from Greece's Hellenic Telecommunications Organization (OTE).

Nagy's statement brings a further delay to settling the fate of debt-ridden CosmoRom, which is jointly controlled by OTE and the Romanian state.

Last year, OTE proposed relaunching CosmoRom under the management of Cosmote (COSMO.AT), OTE's mobile unit, and was hoping to get an answer from the government soon after Romanian general elections last fall.

CosmoRom's total liabilities stand at around EUR190 million, and media quoted unnamed OTE officials last year saying that CosmoRom might need around EUR400 million over a three-year period for its relaunch.

CosmoRom has some 87,000 customers and reported operating revenues of EUR1.6 million, and a net loss of EUR6.2 million in the third quarter of last year.

-By Cristi Cretzan; Dow Jones Newswires; (4021) 210-8197; cristi.cretzan@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 12th January 2005