Serbia Cancels GSM Operator License

The Serbian government has decided to revoke Mobtel's GSM licence. The government found out that Mobtel signed a contract with a Kosovo mobile operator Mobikos without the government's consent, which is necessary for the contract to be valid. Mobtel has thus illegally given the licence for performing telecommunication activities in Kosovo-Metohija to Pec-based Mobikos, whose owner is Ekrem Luka.

By signing the contract with Mobikos, the government alleges that Mobtel has heavily damaged state economic interests and enabled Ekrem Luka to make enormous profits using Serbia's state licence and its infrastructure and exploiting the mobile phone sector in Kosovo-Metohija.

Though Mobtel was under obligation to ask for the Serbian government's consent before concluding the contract, the company avoided doing that because they knew that the government would never allow Ekrem Luka to use the state licence and the state telecommunication infrastructure in the province. The Serbian government has therefore decided to revoke Mobtel's licence.

Mobtel has issued a statement stating that it considers the decision of the Government, and its method of enforcement contrary to the law. Mobtel says that it will challenge the decision and will fight against it at every possible front. In the meantime the company will fully cooperate with the competent authorities although it says the Government of the Republic of Serbia has shamed itself and the legal order of the state.

Mobtel is one of the two mobile operators in Serbia."

Posted to the site on 2nd January 2006