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Monday, November 15, 2004

Romania Sells 3G Licenses To Mobifon, Orange

Romania sold two third-generation mobile telecommunications licenses to MobiFon SA and Orange Romania SA, the communications ministry said in a statement Friday.

Mobifon and Orange, the country's main mobile operators offering Global System for Mobile, or GSM, services, will now be able to offer Universal Mobile Telephone System, or UMTS, service, the statement said.

Mobifon is majority owned by Canada's Telesystem International Wireless Inc. ( IWI.XX), and Orange Romania is majority owned by France Telecom's (13330.FR) mobile arm, Orange.

The Romanian government offered four 3G 15-year licenses, but received only two bids.
Mobifon and Orange will pay $35 million for each license, paying $10.5 million within four months and the rest in five annual tranches of $4.9 million each.

Neighboring Hungary in August also offered four mobile licenses, and awaits bids from interested investors by Nov. 2.

In contrast to Romania, where the license price was already set, Hungary is organizing a tender to award the licenses. One of the Hungarian licenses, however, will be sold on condition that the winner share its sales revenue with the state.

Posted by Iulia Rasoiu : 11/15/2004 01:38:00 pm