The winning company has to cover three development stages by 2011

Jan 12, 2007 13:32 GMT  ·  By

Four companies fought over the two 3G licenses in the contest organized in 2006 by the General Inspectorate for Communications and Information Technology, RCS & RDS, Telemobil (Zapp), Cosmote Mobile Telecommunications and Radiocomunicatii Radiocom SA.

In the end, RCS & RDS and Telemobil won the last two 3G licenses, thus joining the first two 3G mobile operators on the Romanian market, Vodafone Romania and Orange Romania. Vodafone Romania recorded 250,000 clients until the end of December 2006, while Orange Romania had an approximate number of 250,000 EDGE and 3G customers at the end of 2006.

Third ranked operator Cosmote Romania, subsidiary of Greek mobile phone provider Cosmote Mobile Telecommunications, failed to secure a 3G license, despite the fact that it was thought to be in a particularly strong position to win.

The cost of the 3G license provided by the General Inspectorate for Communications and Information Technology (IGCTI) has been set at 35 million dollars, out of which RCS & RDS has already paid the first chunk, worth 10.5 million dollars. The next five annual rates, worth 4.9 million dollars each, are to be paid by the mobile operator every year till January 30, beginning with 2007.

"All commitments that RCS & RDS assumed at the contest will turn into obligations. That means better 3G services for the end users and a more competitive market", said Catalin Marinescu, IGCTI president.

According to the task book, the winner of the third 3G license, RCS & RDS, has to cover three development stages with the following deadlines: June 30, 2008, December 31, 2009 and December 31, 2011. If the conditions are not fulfilled there will be penalties.

"IGCTI is to set a warning period to comply with the obligations in case the license holder does not fulfill them. IGCTI may even suspend or withdraw the license", said IGCTI president.