The Romanian government received applications from four consortia for two Global System for Mobile communications licenses, reported MobiFon, one bidding group. The deadline for applications was last Thursday.
The 900 MHz digital cellular licenses are expected to be awarded by Oct. 25. Winners will be required to pay $50 million upfront for the license, and $5 million per year during the next 10 years, said the U.S. Embassy in Bucharest.
The tender deadline originally was scheduled for more than a year ago. Repeated delays were a result of disputes between the communications and finance ministries regarding license fees, legal questions concerning Telefonica Romania’s rights, as well as turmoil within the communications ministry, reported the U.S. Embassy in Bucharest last July.
The most recent delay was prompted in part by the reactions of interested parties to increased license fees and the short time given to adjust financial plans for the tender.
Telesystem International Wireless Services of Montreal, a subsidiary of Netherlands-based TIW Corp., is lead partner in MobiFon. AirTouch International, Logic Telecom and the National Post of Romania are the other partners.
A party of five comprise Zephir Mobil: Motorola International Network Ventures Inc., Telenor of Norway, Tele Danmark of Denmark and Romanian companies Radiotel Group and Rokura. Radiotel, headquartered in Bucharest, is a group of communications companies whose businesses involve distributing service, integrating systems and networks and operating public communications systems. Rokura provides wireless voice, data and paging services in Romania and is partnered with Okura & Co. of Japan.
France Telecom Mobiles International leads the Mobil Rom consortium, which also consists of Computer Land, Media Pro, Tomen Telecom Romania and Alcatel Network Systems Romania.
STET of Italy and Bouygues Telecom of France head up the fourth group.
Government carrier Telefonica Romania, also known as Rom Telecom, is the country’s only mobile service provider and currently runs a Nordic Mobile Telephone-450 analog network. The company reported 12,850 subscribers in June, said Jake Saunders of Economic and Management Consultants International Inc. in London.
Saunders said Telefonica Romania plans to introduce digital service in the future.
The U.S. embassy said the GSM licenses are “politically lucrative” and therefore competition is expected to be intense. “Bidders can be expected to bring heavy political pressure to bear in support of their proposals.”
