Romanian Court Postpones Ruling In Mobile Operators Vs. Telecom License Granting Rules

Romania’s communication and information technology regulator ANRCTI said Monday that Romanian telecom operator Romtelecom, majority owned by Greece’s OTE, won the auction for the national license for the use of radio frequencies 410-415/420-425 MHz to provide data network and mobile communication services.

Romtelecom will pay a license fee of EUR1,077,228. The operator will also have to pay an annual fee to the regulator for the use of frequencies, in compliance with Romanian telecom laws.

Also Monday, officials of mobile operator Vodafone Romania said the granting of a mobile communication license to Romtelecom at a much lower price than that paid by other operators favors Romtelecom and affects competition.

Vodafone Romania is the second largest mobile operator on the Romanian market, with 9.256 million clients end June. In 1996, the company paid $75 million for a GSM license valid for 15 years in an auction organized by Romanian telecom authorities.

Alongside Orange Romania, Telemobil and RCS&RDS, Vodafone Romania challenged the normative act regulating the granting of mobile communication licenses and requested the suspension of government decision 61/2008 regulating the selection procedure for mobile communication licenses.

The government decision does not allow operators who already have at least one national mobile communication license, including broadband, to bid for a license to use 410-415/420-425 MHz radio frequencies.

Orange Romania, Telemobil (Zapp Mobile), RCS&RDS and Cosmote Romania were thus not eligible to bid for a license.

Romtelecom, a former state monopoly, is Romania’s largest hard-line operator and is 54.01% owned by Greek telecom group OTE.