Telekom Austria Wins Tender For Macedonian GSM License

VIENNA -(Dow Jones)- Austrian telecommunications operator Telekom Austria, Tuesday said it is the successful bidder in the tender for the third mobile telephony license for the Republic of Macedonia.

Telekom Austria paid EUR10 million for a 10-year Global System for Mobile communication, or GSM, 900/1800 license. After expiration, the license will be automatically extended for another ten years, it said in a statement.

Telekom Austria said it has already registered its company in Macedonia, and plans to invest EUR70 million and hire 200 domestic experts, in order to develop the license.

Telekom Austria's Chief Executive Boris Nemsic said: "With this investment, Telekom Austria is making a significant contribution to the further liberalization and development of the Macedonian telecommunication market."

Operations are to start within six months, as required by the license. Also under the contract, 30% of the population is to be covered after one year, 50% after two years, and 90% after four years.

"In order to meet the conditions set by the Agency for Electronic Communications, during the initial roll out, Telekom Austria will rely on the existing Macedonian public telecommunication networks in addition to building its own network," the company said.

Telekom Austria is already active in Austria, Czech Republic, Slovenia, Croatia, Bulgaria and Liechtenstein. It is currently setting up operations in Serbia. For 2006, it reported sales of EUR4.76 billion, and a net profit of EUR561.8 million.

Company Web site: http://www.telekom.at

-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10; flemming.hansen@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 27th March 2007