Telekom Control, the new regulatory body for telecommunications in Austria recently granted 900 MHz Global System for Mobile communications licenses to three operators there, said the Austrian Business Agency, the service and consulting hub for foreign investors. The next step is to award more 1800 MHz licenses.
Mobilcom, max.mobile and Connect Austria, a consortium including Danish telecommunications services group Tele Danmark, are the new licensees. Connect already was awarded an 1800 MHz license, and Mobilcom and max.mobile can apply for 1800 MHz licenses if they fill their 900 MHz spectrum.
Connect cannot use its 1800 MHz spectrum during a three-year protection period-enjoyed by 900 MHz licensees Mobilecom and max.mobile-which began when their licenses were awarded, said Martin Eichtinger, press counselor for the Embassies of Austria in Washington, D.C.
The entire licensing process in Austria has been a turbulent one, as it has been for other European countries with recently deregulated telecommunications markets. The first step to commercialization was a 1994 law that established the Post und Telekombeteiligungsverwaltungsgesellschaft (PTBG) for holding shares in domestic and international postal and telecom companies.
Then, in April 1996, the Postal Structure Law was passed to solve that organization’s structural problems, including high debts, and how to divide its postal, mass-transit and telecom functions. The former state-owned telecom monopolist, Austrian Postund Telegraphenverwaltug (PTV) was changed to Post & Telekom Austria AG, an independent corporation whose shares are owned by government-owned PTBG.
In August 1997, following long negotiations, a new Telecom Act passed the Austrian parliament, establishing a basis to promote competition and universal service. Parliament’s decision to pass the law at the 11th hour concluded months of debate following a warning from the European Union about the consequences of delaying deregulation.
