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Hutchison's call

Hong Kong-based conglomerate Hutchison wants to expand its empire in Poland, in a move that could shake up the mobile-phone industry.

The company last week bid in a tender for a single block of new mobile-phone UMTS frequencies, which allows for third-generation (3G) functions.

The firm used a small local company, Qiana Investments, which it owns, to bid in the tender. Poland's big three mobile-phone firms, Polkomtel, PTC and Centertel, already have UMTS licences and also bid, somewhat reluctantly, for the new frequencies. Some analysts claim they are simply buying up the bandwidth to freeze out further competition.

Hutchison is unlikely to take any prisoners. It has a reputation for driving down prices and although Netia is also involved in the tender, it is the Asian giant that the Polish market will watch carefully. "Hutchison is much more of a threat than, say, Netia, because of their experience and global ambitions," said CA IB analyst Anna Bossong.

With penetration of around 60 percent, Poland's mobile phone market - which now uses only the second-generation GSM standard - offers more room for growth than other central European countries where penetration can top 100 percent.

Christian Salbaing, managing director for European telecoms of Hutchison 3G, declined to say how much the firm had bid for the Polish frequencies but said: "I'm convinced that what we've done elsewhere and the credibility we've established in 3G show that we're the right company for Poland." (Reuters)

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