Telecom Ministry reduces fee for El-Net Warsaw license

The Telecommunications Ministry finally reached an agreement with Elektrim S.A. telecom subsidiary El-Net regarding reducing the Warsaw area license fee. El-Net will pay euro 140 million and not the amount they bid in the tender of euro 245 million. The reduced fee was negotiated because the Ministry granted a second license in Warsaw to telecom operator Netia. Both licenses were contested by the rival telecoms. The first license was granted to El-Net by former Telecom Minister Maciej Srebro and the second to Netia by the present Minister Tomasz Szyszko. El-Net went as far as to file its case with the Supreme Administrative Court (NSA). The agreement settles the initial liberalization of the telecom market in Warsaw. As of September there will be three active telecom operators in the area including Telekomunikacja Polska S.A. (TPSA). More competitors will be introduced in 2002 when full liberalization occurs. (Puls Biznesu, page 1, 3)