COPENHAGEN, Denmark—The Danish telecom agency awarded four third-generation (3G) licenses for US$118 million each after receiving bids from five companies.
Incumbent operators TDC Mobile, Telia Denmark and Orange each won a license, along with newcomer Hi3G Denmark. Norway’s Telenor, which is the majority owner of Denmark’s mobile operator Sonofon, walked away empty handed after Sonofon’s other stakeholder BellSouth decided not to submit an application for a license.
The licenses were awarded through an open auction, with a minimum price of US$62.1 million each.
“Our business plan for the Danish mobile market did not permit us to pay the price, which was set for the licenses,” said Arve Johansen, chief executive officer (CEO) of Telenor Mobile. “We believe Sonofon will have ample possibilities for pursuing the implementation of the 3G strategies set out by the company.”
Speculation that U.S.-based BellSouth is looking for a buyer for its equity stake in Sonofon intensified following its decision to pull back from plans to submit an application for one of the four available Danish 3G licenses. That decision upset Telenor, which then presented an unaccompanied offer. The development has soured relations between BellSouth and Telenor, while re-opening the issue of the American telecom company’s commitment to the pan-Nordic market.
With its license win, Telia now holds 3G licenses in Norway, Finland and Denmark. It is also involved in a partnership with Tele2 to offer 3G services in its home market of Sweden, although it did not win a 3G license in that country.
“We are delighted to be granted the license, which is in line with our Nordic strategy,” said Kenneth Karlberg, senior executive vice president of Telia and head of the mobile business area. “It gives us the opportunity to continue our strong growth in the Nordic mobile market.”
