ANCOM

During the meeting of today, January 16, 2008, the Government approved by Decision the selection procedure for granting a national licence for the use of radio frequencies in view of providing data networks and mobile electronic communications services in the 410 – 415/420 – 425 MHz frequency bands.

The licence shall be granted by comparative selection. Within 15 days from the publication date of this Government Decision in the Official Romanian Journal, the President of the National Regulatory Authority for Communications and Information Technology (ANRCTI) shall issue a decision on organising the selection procedure. Within 15 days since this decision is published in the Official Romanian Journal, ANRCTI shall elaborate the Terms of Reference and submit the document for public consultation for a 30 days period. The procedure for granting the licence for the use of the respective frequency bands will be launched after the comments of the industry are gathered and it will span over approximately three months.

It may be foreseen that, by July 31, 2008, the procedure will be completed and the winner announced.

The licence fee equals to the equivalent in RON of EUR 1,077,228 and will be transferred to the State budget. The amounts representing the costs generated by the re-organisation of the use of radio frequency bands for the use of the radio-frequency spectrum in the 410-415/420-425 MHz frequency bands – respectively EUR 77,228 – are to be granted to the operators currently holding the 410-415/420-425 MHz frequencies, namely Romtelecom, Radiotel Brasov, Romcom Pro Bucharest, Radiotel Bucharest. The licence shall be granted to the winner of the selection procedure within 15 days from the date the licence fee has been paid.

Providers holding at least one national licence for the use of radio frequencies in view of providing mobile electronic communications networks and services (including broadband) and providing, or being able to provide, mobile electronic communications networks and services substitutable with the ones that can be provided by using the 410-415/420-425 MHz frequency bands, respectively telephone services and Internet access, may not take part in the selection procedure.

The granting of such licence to a new provider of electronic communications networks and services shall enhance competition on the relevant market, shall contribute to the more effective use of the frequency spectrum and shall enable the provision of communication services in the rural areas where the existing operators do not provide Internet access services and telephone services.

“The frequency released today is a lower one and allows – with a reasonable investment – the coverage of larger areas, thus stimulating the winner operator to offer services in the rural areas. This initiative will also help ensuring the broadband Internet access in the disfavoured areas” , Dan Georgescu, the President of ANRCTI, considered.