Telecom Ministry sets UMTS entry fee at euro 750 million

Telecommunications Minister Tomasz Szyszko said on Friday that the minimum bid for the upcoming third generation mobile UMTS licenses would be euro 750 million. Local GSM operators have criticized the price saying it was too high and would make it impossible for them to bid. Szyszko said the payments will be split in two with the first half to be paid next year and the remainder over the following seven years. He also said Telekomunikacja Polska S.A. (TPSA) must pay the market price for a license, but analysts are doubtful as to whether TPSA has the muscle to endure an open auction to the end. The Ministry will make the tender documentation available between Oct. 2-5 and the deadline for filing bids will be Nov. 6 with a decision expected by Nov. 27. The Ministry expects six or seven groups to participate in the tender for five licenses. (Rzeczpospolita, Sept. 2-3, page A1, B2, Reuters)