Minister goes on European tour to sell UMTS tender

Minister goes on European tour to sell UMTS tender Telecom Minister Tomasz Szyszko will go on a European road show next week, in an effort to persuade major telecom operators to participate in the tender for third-generation UMTS mobile telecom licenses. The Ministry is auctioning off five licenses, with a minimum price of euro 750 million each. Some investment banks, such as Raiffeisen and Merrill Lynch, have criticized the amount of the license fee and tender requirement that 50% of the fee be paid by March 2001. However, Szyszko said based on talks he has held, there is a general acceptance of the license fee amount. As for the payment schedule, he said, "[Payment] of 50% of the license fee in the first year is a European standard. It is meant to secure us against participation in the tender of financially weak entities." He added that operators would prefer if only four licenses were granted but he fears that would lead to the market being dominated by the three current GSM operators who will surely vie for a UMTS license. (Rzeczpospolita, page B2)