Telefónica O2 Slovakia wins mobile licence with lowest bid

3 Aug 2006

Slovakia has awarded its third mobile network operating licence to Telefónica O2 Slovakia, a unit of Spain’s Telefónica, the Telecommunications Office announced in a statement. The 20-year licence includes frequencies in the GSM-900/1800MHz, UMTS 2100MHz and FS 29GHz (point-to-point) bands. Reports have surfaced that Telefónica tabled the lowest bid, SKK150 million (USD5 million), while rival bidder Mobilkom Austria offered SKK250 million, and B Four, a consortium led by Czech telecoms company Ceske Radiokomunikace, offered around SKK400 million. However, the bid price only accounted for a 5% weighting in the tender, with the regulator focusing on the applicants’ ability to strengthen competition in the market. According to TeleGeography’s GlobalComms database, the Slovak mobile sector is a perfect example of a developed European market ripe for the injection of new competition, with a wireless duopoly of T-Mobile Slovensko (formerly EuroTel Bratislava) and Orange Slovensko.

Slovakia, O2 Slovakia, Telefonica