Regional telecom licenses awarded
The firm, which sells 41% of the computers sold in Poland, has a strategy to provide local phone services to one-third of Poland but it is now revising its cost estimates and technological strategy because the licenses received from the Minister of Communications last month only cover the regions around Krakow, Gdansk and Poznan - excluding the cities themselves - plus the whole Opole province.
"I would be much happier if we got licenses for (the cities in those regions)," said Janusz Luks, president of Polskie Telmedia SA, the 100%-owned subsidiary of Optimus responsible for the company's expansion into telecommunications.
While Optimus officials intend to bid on more operating licenses, the law concerning licensing is in transition. On July 7, the Law on Telecommunications changed the application process such that future licensing awards are subject to tender. Until now companies have had only to apply for licenses. Officials at Optimus say they will gladly tender if their applications from December 15, 1994 are now inadequate.
Polskie Telmedia is now in the process of analyzing how the exclusion of major cities will affect its investment. Company officials would not disclose details on how much money they will devote to fixed-line telephone service or how many more phones may be connected in the regions.
"Public service providers have an obligation to the public," Luks said. "You cannot refuse service once you commit yourself. At this point we are in the process of verifying the terms of the licenses with the reality."
Although Polskie Telmedia had hoped for licenses covering one-third of Poland, the recently-issued licenses for the four regions are the broadest ever issued to a single private operator in the public networks area.
Any local operations will have to connect with lines controlled by TPSA, the state-owned telephony giant.
"We hope to cooperate with TPSA in setting tariffs and traffic," said Andrzej Bielecki, president of PAGI, Optimus' 84%-owned subsidiary responsible for data transmission. "We see these licenses as the necessary toll to enter the information technology market."
Polskie Telmedia and PAGI specialize in separate but complementary technologies with different aims for Optimus. "The convergence of telecommunications and computers is natural. They are merging into one," Luks said.
Optimus had net sales last year of z*. 200 million ($87.3 million) with net income of z*. 11 million ($4.7 million). Funding for a major project would come from investment banks such as Merrill Lynch, which has committed $20-$40 million for future Optimus projects, and Telemedia Nomura International, an affiliate of the Japanese investment bank.
Another firm to recently receive an independent operating license is Elektrim-TV-Tel. It received licenses last month to provide local phone service for the towns of Kutno, Zychlin and Leczyca. The firm plans to have phone lines for 28,000 more people by the end of 1998. The first phase of the project will hook up 4,000 phones and provide access to cable TV with a planned investment of $4 million.
"Under the new law firms will have to pay much more money for these licenses," said Krzysztof SzczeSniak, spokesman for Elektrim. He said the firm had a special interest in the region because last year Elektrim bought Teleradio, a cable TV operator in Zychlin.
Twenty companies received similar operating licenses in June, according to SzczeSniak.
"I would be much happier if we got licenses for (the cities in those regions)," said Janusz Luks, president of Polskie Telmedia SA, the 100%-owned subsidiary of Optimus responsible for the company's expansion into telecommunications.
While Optimus officials intend to bid on more operating licenses, the law concerning licensing is in transition. On July 7, the Law on Telecommunications changed the application process such that future licensing awards are subject to tender. Until now companies have had only to apply for licenses. Officials at Optimus say they will gladly tender if their applications from December 15, 1994 are now inadequate.
Polskie Telmedia is now in the process of analyzing how the exclusion of major cities will affect its investment. Company officials would not disclose details on how much money they will devote to fixed-line telephone service or how many more phones may be connected in the regions.
"Public service providers have an obligation to the public," Luks said. "You cannot refuse service once you commit yourself. At this point we are in the process of verifying the terms of the licenses with the reality."
Although Polskie Telmedia had hoped for licenses covering one-third of Poland, the recently-issued licenses for the four regions are the broadest ever issued to a single private operator in the public networks area.
Any local operations will have to connect with lines controlled by TPSA, the state-owned telephony giant.
"We hope to cooperate with TPSA in setting tariffs and traffic," said Andrzej Bielecki, president of PAGI, Optimus' 84%-owned subsidiary responsible for data transmission. "We see these licenses as the necessary toll to enter the information technology market."
Polskie Telmedia and PAGI specialize in separate but complementary technologies with different aims for Optimus. "The convergence of telecommunications and computers is natural. They are merging into one," Luks said.
Optimus had net sales last year of z*. 200 million ($87.3 million) with net income of z*. 11 million ($4.7 million). Funding for a major project would come from investment banks such as Merrill Lynch, which has committed $20-$40 million for future Optimus projects, and Telemedia Nomura International, an affiliate of the Japanese investment bank.
Another firm to recently receive an independent operating license is Elektrim-TV-Tel. It received licenses last month to provide local phone service for the towns of Kutno, Zychlin and Leczyca. The firm plans to have phone lines for 28,000 more people by the end of 1998. The first phase of the project will hook up 4,000 phones and provide access to cable TV with a planned investment of $4 million.
"Under the new law firms will have to pay much more money for these licenses," said Krzysztof SzczeSniak, spokesman for Elektrim. He said the firm had a special interest in the region because last year Elektrim bought Teleradio, a cable TV operator in Zychlin.
Twenty companies received similar operating licenses in June, according to SzczeSniak.
