"Telenor" submitted offer for fixed telephony license in Serbia

- Company "Telenor Srbija" is the only company to submit the bid for the license for the second fixed telephony operator in Serbia - the Republic Telecommunications Agency (Ratel) announced today (January 12, 2010).

It was said at the opening of bids in Ratel that "Telenor" had submitted all the necessary documentation and that the financial bid would be opened prior to January 18th.

The Minister of Telecommunications of Serbia, Jasna Matić, expects the tender for abolition of monopoly on fixed telephony services to be successful and that the offer of "Telenor" will be suitable.

- The aim of the tender is that the citizens be able to select the package to optimize the costs of telecommunication services, mobile and fixed telephony and internet, which is of exceptional importance for the quality of life of citizens and the competitiveness of the economy - said Matić.

The Minister said that, if the bid of "Telenor" was inappropriate, the analysis of the tender's weakness would be done and then the procedure for selection of the second fixed telephony operator would be repeated.

Matić also said that the new draft law anticipated complete liberalization of the telecommunications services market in Serbia by the end of 2011.

The representative of "Telenor", Goran Vasić, said that "Telenor", if it got the license for the fixed telephony services, would start providing services within one year. As he said, the aim is that single Internet, fixed and mobile telephony service be offered to the subscribers.

- "Telenor" is willing to resume investments in development of telecommunications in Serbia and offer new, better and more modern services - he said to the press.

Vasić did not want to speak in this phase of the tender about the prices that "Telenor" would offer, but he said that the fixed telephony market in Serbia was the cheapest in the region and Europe.

According to his words, "Telenor" will invest in development of its own telecommunication infrastructure, but part of the infrastructure will have to be rented.

The license is issued on the period of 10 years with the possibility of extension for another 10 years, and it will be issued within eight days from the day the whole fee is paid to the budget of Serbia.

The documentation for participation in the tender was also purchased by "Vip Mobile", Serbian-American "Konsing" Group and Cypriot "Kerseyco Trading Limited", but they gave up submitting bids.

The only fixed telephony operator in Serbia is state-owned company "Telekom Srbije", which had about 3m subscribers at the end of year 2008.