Netia threatens to relinquish long-distance telephone license

Netia is considering giving up its license for the long-distance telephone market. Netia officials say they are unable to reach an agreement with Telekomunikacja Polska S.A. (TPSA) on a few crucial matters related to inter-connection fees. Netia, which is 48% owned by Swedish Telia, was among three companies, which received licenses to provide long-distance services in May this year. According to Netia spokeswoman Jolanta Ciesielska, TPSA is using monopolistic practices and did not want to reach an agreement that would allow the company to start a competing service. Netia plans to file a complaint to the Telecommunications Ministry. If Netia decides to withdraw from the investment, it will demand compensation from the government amounting to at least euro 23 million, which was the price of the license. It will also demand compensation for other, already started investments in this project. (Prawo i Gospodarka, Aug. 26-27, page 1, 9, Reuters)