Polish Telecom Regulator Opens Mobile Frequencies Tender

WARSAW -(Dow Jones)- Poland's telecommunications market regulator Tuesday opened a tender for additional global system for mobile and third-generation frequencies.

The move could open the way for a fourth mobile telephone operator on the domestic market.

In a statement, the Telecommunications and Postal Regulatory Office, or URTiP, said bids for the new frequencies will be due by April 12, and the tender will be decided by May 9.

Potential new entrants on Poland's mobile market include domestic fixed-line operator Netia Holdings (NET.WA), Swedish carrier Tele2 (TEL2-B.SK), and Hutchison Whampoa (0013.HK).

However, those operators have said they may not bid if the URTiP doesn't allow them to use the infrastructure of the three existing domestic operators until they complete the build-up of their own infrastructure, a principle known as domestic roaming.

At a news briefing Tuesday URTiP President Witold Grabos ruled out roaming services. "There will be no obligation to provide roaming services, because such a condition could lead to a legal challenge to the entire tender," he said.

Poland's current mobile carriers - Polska Telefonia Cyfrowa (PTC.YY), Polkomtel (PKT.YY,) and Telekomunikacja Polska SA (TPS.WA) - are resisting opening their networks to a new operator.

The three are planning to place their own bids and could be willing to pay up to EUR650 million to acquire for themselves the new GSM and third-generation Universal Mobile Telecommunications System, or UMTS, frequencies.

The entrance of a fourth mobile operator could lead to in lower tariffs and new types services, Grabos said.

"There is a chance the new operator will launch a new quality into the market," said Grabos. In terms of market size, he said there are still about ten million potential subscribers.

The bids will be evaluated according to five criteria, the most important being the price and the maintenance of competition in the market.

URTiP set the minimum annual payment for the GSM1800 frequencies at 3.96 million zlotys ($1=PLN3.0115) and PLN1.05 million for UMTS frequencies.

-By Malgorzata
Halaba; Dow Jones Newswires, +4822 622 2767; malgorzata.halaba@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 22nd February 2005