Netia 1 connects to TPSA long-distance network

Poland's largest telecom operator Telekomunikacja Polska S.A (TPSA) will have to face competition in long-distance service from its rival Netia 1, after the two companies signed a contract on Friday under which their networks will be connected. The new service will begin a testing period on July 1, and then will be available for customers beginning in August. The contract follows more than a year of difficult negotiations between monopolist TPSA and Netia 1, Energis Polska and NOM, after the latter three had all received licenses for long-distance call servicing, but failed to come to an agreement with TPSA over joining networks and account settling. Last month the Netia 1 Group demanded a refund from the Telecom Regulations Office (URT) of the euro 116 million it had paid in 2000 for its license, which under the new law that took effect in January 2001 lost validity. This year Netia will spend $200 million on investments. (Rzeczpospolita, May 19-20, p.B4)J.K.