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Netia moves on the mobile market

The country's second largest fixed-line operator, Netia, says it is determined to enter the mobile market this year.

CEO Wojciech Madalski says Netia will bid in the tender for new mobile frequencies. If the company fails to secure any of the new contracts it will consider setting up shop by negotiating to use other operators' infrastructure to provide services under the Netia brand.

"One of our 'stretch goals' this year is success in mobile-and I define success as being able to offer clients a Netia-branded mobile phone," Madalski said.

"I'm more interested in what I can offer the client, not what technology it is, or whether the infrastructure belongs to us or not."

Madalski is also calling on the regulator, URTiP, to change the terms of the mobile tender to give preference to new entrants.

He said the company hopes to set up a joint venture to bid for the frequencies, and is in talks both with Western telecom firms and with financial investors-his second choice. He declined to name any of the potential partners, but said it was unlikely that Netia would bid alone.

By May, URTiP is to sell frequencies for use in both the GSM 1800 standard, currently in use, and the third-generation UMTS, which allows functions such as live streaming video.

But Madalski echoed local firm Tele2 in criticizing draft tender rules published by URTiP for a public consultation period, saying they would not keep current operators from buying up the frequencies to lock out newcomers. "I would like to believe that URTiP is determined to bring a fourth operator onto the market, and so they will change the terms. If they don't change them, it would mean that the talk about a fourth operator is just lip service."

With sales of zł.666 million in the first three quarters of 2004, Netia is Poland's second-largest fixed-line operator after incumbent TPSA. (Reuters)

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