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Czech incumbents reject 3G price tag

PRAGUE, Czech Republic—All three incumbent mobile operators in the Czech Republic have refused to pay the minimum US$180 million price set for the country’s third-generation (3G) licenses, sending the licensing process into an upheaval. The licenses are set to be auctioned next month, but with the incumbents refusing the minimum price set in the first round of the process, it is likely the amount drawn for the licenses will be much less than the minimum set by the government.

The country has one of the highest mobile penetration rates in the central European region. With the declining global telecom market, incumbent operators have said the 3G license prices should be no more than US$67 million each.

The country’s three mobile operators include Cesky Mobile, owned by Canada’s Telesystem International Wireless; EuroTel Praha, owned 51 percent by Cesky Telekom and 49 percent by a Verizon Wireless and AT&T Wireless Services venture; and RadioMobil, majority owned by Deutsche Telekom.

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