Serbia accepts Telenor's bid for landline licence

22 Jan 2010

As expected, Serbia has accepted Norwegian telecoms group Telenor’s EUR1.05 million (USD1.52 million) bid for the nation’s second landline phone licence, ending the long standing monopoly of incumbent Telekom Srbija. Telenor was the sole bidder in a tender called in November for a ten-year renewable licence, which sought bidders with at least a EUR200 million turnover in 2009 and a million registered users.

Last week telecoms regulator Ratel described Telenor’s offer as low, but Kjell-Morten Johnsen, CEO of Telenor Srbija, responded that fixed telephony in Serbia was not profitable. He said that the Telenor Srbija plans to ask Telekom Srbija to lease its infrastructure, before developing its own fibre-optic high-bandwidth network.

Ratel is due to announce the government’s decision formally by 10 February, when it will also set the price for the infrastructure lease, said a official of the Ministry for Telecommunications who did not want to be named.

Serbia, Telenor Group, Telenor Serbia