Skip to content
Advertisement

Business

Tidbits or bullying tactics?


Smoke signals first appeared when Communications Ministry chieftain Andrzej Zielinski told a business group that positive developments were underway in his sector. Among his pronouncements, a telecommunications monopoly was being brought to heel.
No, he wasn't talking about Telekomunikacja Polska SA, rather he was pointing a finger at Centertel, whose mobile phone monopoly will begin crumbling by year's end.
Zielinski signaled a hard-line that gained backing last week with a government-released report. The eight-page statement highlighted criticism of Centertel by state agencies and consumer complaints about prices and quality of service. It also contained numerous allegations that Centertel had not lived up to the conditions of its license. Centertel's response: No comment. We haven't received any official criticism.
The imbroglio began last year when state officials told Centertel shareholders - TPSA, France Telecom and Ameritech - that they were not guaranteed a spot in the sale of two Global Systems Mobile licenses. That angered France Telecom and Ameritech, who claim the decision runs contrary to a Letter of Intent initialed five years ago when they purchased the analog mobile phone license. They have taken their claim to international arbitration. And in the meantime, Ameritech has said it is willing to seek solutions other than international arbitration and state officials have held out the possibility of a third GSM license. The Communications Minister's report - issued to inform "the public opinion of his position on this matter" - shows the government is going to play hardball with big league players France Telecom and Ameritech.
Fair enough. But the motivation to inform the public loses credibility in the next sentence. It says the minister is considering the publication of a more extensive paper detailing further allegations against France Telecom and Ameritech.
This is a threat. It is also a sign that the mud will really start to fly. That's fine from a newspaper's standpoint, we love juicy tidbits. But it's horrible news for foreign investors. They will want to see the government act in a responsible manner. Namely, that it will press complaints in court, not use political, bullying tactics in the public arena.

More from Business All