Tenders for GSM and UMTS frequencies launched - UKE

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Tenders for GSM and UMTS frequencies launched

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On 22 February 2005, the President of the Office of Telecommunications and Post Regulation announced the launch of tendering procedures for the assignment of frequencies for new mobile networks in the UMTS and GSM 1800 standard.

The announcement of the tendering procedure was preceded by a public discussion on the possible assignment of frequency resources freed by the army for the purposes of mobile telephony that was held for several months of last year. It was closed by the issuance in September 2004 of a “Concept of tendering procedure for the use of 1800 MHz and UMTS frequency bands” by the President of URTiP. This was an input document aimed at preparing formal procedures of UMTS and GSM 1800 MHz frequency reservations for entities selected in the course of the tenders.

After the necessary executive legislation to the new Telecommunications law had been issued, the President of URTiP carried out consultation proceedings with regard to draft documentation for the UMTS tender and for the GSM 1800 tender, lasting from 7 January to 7 February 2005.

The results of consultations were included in a detailed commentary to 12 positions submitted during the consultation proceedings. The President of URTiP decided to make several modifications in the final version of tendering documentation, inter alia, to:

  • reduce the minimum amount for the UMTS frequency reservation and the amount of security in connection with the entry into force of an ordinance of the Council of Ministers of 8 February 2005 on annual fees for the right to dispose of a frequency (Dz.U. No 24 of 10 February 2005, item 196). Currently the minimum amount for GSM 1800 frequencies is PLN 3.960.000 and PLN 1.050.000 for UMTS frequencies;
  • correct the formula for calculating the competition and declared amount criteria so that the number of obtained points can be more diversified depending on the opinion of the President of the Office for Competition and Consumer Protection – UOKiK (modification of element “a” in the formula);
  • clarify so called expert criteria, i.e. evaluation of market entrants’ financial credibility, technical solutions, an economic and financial study and experience on other markets;
  • increase the number of points for the tenderer’s financial credibility at the same time reducing the number of points for proposed technical solutions.

Interested entities can purchase tendering documentation starting from the announcement of tendering procedures by the President of URTiP. By 12 April 2005 at the latest, offers can be submitted – separately in the tender for the reservation of UMTS frequencies and separately for GSM 1800.

Tenderers in both tenders have an obligation to present their strategies for a planned development of mobile networks and services. However, in the case of the GSM 1800 tender, tenderers will have to declare a minimum coverage of population, amounting to at least:

  • 5% at the end of 2006,
  • 10% at the end of 2007,
  • 20% at the end of 2008.

The tendering commission after the examination of formal requirements in the first stage, will evaluate submitted offers in the second stage, taking into account the following criteria:

  • preserving competitive conditions (seeking the opinion of the President of UOKiK) and the declared amount – in total up to 300 points;
  • financial credibility – up to 60 points;
  • technical solutions included in the offer – up to 40 points;
  • economic and financial study of an offer’s subject – up to 20 points;
  • tenderer’s experience in the telecommunications business – 30 points.

In order for an entity to be considered as selected in the course of the tender, it must obtain a qualifying minimum of 300 points.

Works of the tendering commission will be finished and results announced by the President of URTiP by 9 May 2005 at the latest.

The last stage in the selection of new mobile networks’ operators will be the issuance of frequency reservation decisions by the President of URTiP – for UMTS and GSM 1800 MHz respectively, which give the right to develop one’s network and to start the provision of services.


=> Documentation for the GSM tender

=> Documentation for the UMTS tender

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