Results of tenders for UMTS and GSM frequencies - UKE

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Results of tenders for UMTS and GSM frequencies

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2005-05-09

President of the Office of Telecommunications and Post Regulation completed tender procedures for the reservation of frequencies in the mobile telephony.

The objective of both tenders was to designate radio frequencies freed by the army for the purposes of one mobile network in the UMTS standard (so called 3G telephony) and one network in the GSM 1800 MHz standard used already for a number of years.

The winner of the tender for UMTS is Netia Mobile, whereas the second tender for the reservation of frequencies in the GSM 1800 band remained unresolved since none of the tenderers had achieved the qualifying minimum.


Tender for UMTS

The subject of the tender for UMTS was the selection of one entity for which a reservation of three duplex channels in the 1964,9-1979,7 MHz and 2154,9-2169,7 MHz bands as well as of one channel in the 1900,1-1905,1 MHz band will be made for the period till 31 December 2022 involving the entire national territory. These frequencies are equivalent to the resources currently held by the existing UMTS operators in Poland (i.e. Polkomtel, Polska Telefonia Cyfrowa and PTK Centertel have the same number of UMTS channels).

In the course of the tender procedure announced on 22 February 2005, offers were submitted by the following 5 entities: Polska Telefonia Cyfrowa, Polkomtel, Netia Mobile, Qiana Investments and PTK Centertel.

After checking formal requirements in the first stage, 3 offers qualified for the second stage: Netia Mobile, Qiana Investments and PTK Centertel. The reason why the remaining two offers didn’t qualify was that they did not comply with the requirements of the tender documentation specified by the President of URTiP on the basis of the ordinance of the Minister of Infrastructure.

In its opinions submitted to URTiP, the President of the Office for Competition and Consumer Protection stated that offers for UMTS by Netia Mobile and Qiana Investments (the main shareholder is Hutchison from Hong Kong) have the same influence on competition in the Polish mobile market (competition factor equal to 40).

During the second stage of the tender procedure individual offers obtained the following total number of points:

  • Netia Mobile – 349,454 points
  • Qiana Investments – 305,627 points
  • PTK Centertel – 95,929 points

Criterion (maximum number of points for a given criterion)

No of points obtained by Netia Mobile

No of points obtained by Qiana Investments

No of points obtained by PTK Centertel

Preservation of competitive conditions and the declared amount (max=300 points)

248,787

175,238

0,040

Financial credibility of the tenderer (max=60 points)

34,111

51,000

47,056

Technical solutions included in the offer (max=40 points)

31,389

35,389

15,222

Economic and financial study of an offer’s subject (max=20 points)

15,056

18,167

7,444

Tenderer’s experience in the telecommunications business (max=30 points)

20,111

25,833

26,167

The offer by PTK Centertel did not obtain the qualifying minimum equal to 300 points, inter alia, because the company declared nothing in excess of the required minimum charge for the frequency reservation equal to 1.050.000 PLN. The remaining tenderers declared accordingly: Netia Mobile 344.000.000 PLN and Qiana Investments 102.427.500 PLN – in excess of the minimum charge for the reservation.

As a result of the tender for UMTS, the entity with the biggest number of points is Netia Mobile.


Tender for GSM 1800

In the tender for GSM 1800 the frequency reservation was to cover 99 duplex channels in the 1710-1730 MHz and 1805-1825 MHz bands awarded in its entirety to one entity for the period till 31 December 2022 and for use in the whole of the national territory.

In the course of the tender procedure announced on 22 February 2005, offers were submitted by the following 3 entities: Polkomtel, Netia Mobile and PTK Centertel.

The offers by Netia Mobile and PTK Centertel qualified for the second stage. The offer by Polkomtel did not comply with the requirements of the tender documentation specified by the President of URTiP on the basis of the ordinance of the Minister of Infrastructure.

Individual offers obtained the following total number of points:

  • Netia Mobile – 140,553 points
  • PTK Centertel – 106,305 points

Criterion (maximum number of points for a given criterion)

No of points obtained by Netia Mobile

No of points obtained by PTK Centertel

Preservation of competitive conditions and the declared amount (max=300 points)

43,164

0,527

Financial credibility of the tenderer (max=60 points)

34,111

46,833

Technical solutions included in the offer (max=40 points)

27,000

16,278

Economic and financial study of an offer’s subject (max=20 points)

15,778

12,889

Tenderer’s experience in the telecommunications business (max=30 points)

20,500

29,778

Since none of the tenderers obtained the qualifying minimum (300 points), the President of URTiP deemed the tender unresolved according to Article 118 (9) (1) of the Telecommunications law.

In the tender for GSM 1800 frequencies the amounts proposed by tenderers for the reservation were on such a low level that they significantly reduced their chances to win the tender. Also in this tender PTK Centertel declared nothing in excess of the required minimum charge for the frequency reservation equal to 3.960.000 PLN. Netia Mobile declared 1.000.000 PLN in excess of the required minimum.


Results of tenders

Having announced the results of the tender for UMTS, the President of URTiP will issue as soon as possible a decision on the reservation of frequencies subject to the tender at the request of its winner. From the moment the operator receives the decision, it will be able to deploy its own network and start the provision of UMTS mobile services.

The results of the tender for GSM 1800 MHz give us the grounds to think that the proposed method for the designation of these frequencies met with moderate interest. In the absence of a resolution the President of URTiP has now another possibility to deal with 99 channels in the 1800 MHz band - in line with the current demand of market players. If, for the second time, the demand for frequencies exceeds available resources, a new tender for GSM 1800 with modified requirements will be prepared.


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