Less than a month after applications were due for two Global System for Mobile communications cellular licenses, the Polish Ministry of Communications announced winners. Both parties are co-piloted by U.S. companies.
Polkomtel, an international consortium of which AirTouch International is 19.25 percent owner and the lead technical partner, received the first license. The other was awarded to the Polska Telefonia Cyfrowa Sp.z o.o, a venture owned 22.5 percent each by telecom giants U S West International and DeTeMobil, the cellular arm of Deutsche Telecom.
AirTouch spokeswoman Susan Rosenberg said the ministry’s decision came more quickly than the company expected.
“Poland has the fastest growing economy in Europe,” stated Arun Sarin, president and chief executive officer of AirTouch International. “Given its less developed telecommunications infrastructure, we think there’s tremendous pent-up demand for cellular service.”
U S West International President and CEO Gary Ames agrees Poland is a promising market for GSM cellular. “Mobile phone penetration in Poland runs well behind most other major countries in Europe, even though it has a GDP [gross domestic product] growth exceeding 6.5 percent,” said Ames.
Poland is home to 40 million people, and cellular penetration is less than 1 percent. AirTouch expects Polkomtel will begin service in Warsaw by the end of the year.
Polkomtel’s other major partners include Danish telecom operator Tele Danmark; Petrochemia Plock, a Polish oil refinery; and KGHM Polska Miedz, a copper mining company. Each holds 19.25 percent. The remaining shares are distributed among several Polish companies.
Polska Telefonia Cyfrowa is owned 32.5 percent by Polish trading conglomerate Elektrim SA. Other investors include Polish banks and other businesses.
Rosenberg said both GSM licensees are required to pay the Ministry $130 million for the their licenses and an annual stipend over the next five years, calculated on subscriber growth.
Current cellular provider, Centertel, operates Poland’s sole cellular network using analog technology. The venture is owned 24.5 percent each by Ameritech International and France Telecom, and 51 percent by government telecom operator Telekomunikacja Polska SA. Both foreign partners currently are pursuing arbitration against the government, claiming the Polish Communications Ministry promised Centertel a GSM license several years ago, as part of the two foreigners’ initial network plans.
The Polkomtel operation is AirTouch’s first major venture into Eastern Europe, said Rosenberg. Most of the company’s international pursuits are in Western Europe and the Asia-Pacific region.
U S West’s cellular ventures neighboring Poland include Hungary, the Czech Republic and Slovakia, said the company.
