Romanias mobile operators to hold joint conference on new licence auction.

By bne IntelliNews March 13, 2012
The three major telecom operators active on Romania's mobile market, France Telecom, Vodafone Group and Deutsche Telekom, organise today, March 13, a joint news conference on the auction for new operating licences the Romanian government is expected to hold this year, Ziarul Financiar daily reported. We recall that the Romanian government prolonged under emergency procedure the operating licences of Orange and Vodafone last December, days before their 15-year licence period expired. This year, Romania will organise an auction for new long-term operating licenses. Technically, the 900MHz bands, used currently by Orange Romania and Cosmote, will be auctioned. More bandwidth will also be added in order to allow operators to develop 4G applications. The three main mobile operators are expected to advocate for low fees because of high investments needed for the 4G networks and due to the low revenue per user in Romania (ARPU) that is 2 to 3 times lower than in Western Europe. There is no official position of the government on this issue, but unofficial sources say that Romania expects revenues of around EUR 0.5bn from the auction of the new mobile operating licenses. The military alone claims that it needs EUR 0.2mn for freeing some bandwidth subject to the auction.

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