Poland’s Minister of Telecommunications announced plans to issue a tender for a personal communications network license at 1.8 GHz. In separate news, international arbitration between Ameritech International and the government of Poland has ceased since Ameritech sold its shares in cellular operator Centertel to the venture’s other partners, France Telecom International Mobiles and Telekomunikacja Polska, the state-owned telecom operator.
The Digital Cellular Services 1800 license is expected to be awarded in the first half of 1997, Minister Andrzej Zielinski said at a recent press conference.
Dennis LaComb, director of international affairs for Ameritech, said the amount of sale and distribution of shares to the other Centertel investors is confidential under their agreement. LaComb did say Ameritech is satisfied with the sale, which culminated late last month.
Previously, Ameritech and France Telecom held a 24.5 percent stake in Centertel, which operates an analog Nordic Mobile Telephone 450 network. TP owned 51 percent.
Arbitration was launched when Ameritech discovered Centertel would not be handed a license to operate a Global System for Mobile communications network.
Ameritech and France Telecom said their initial combined investment of $75 million in the Centertel network in 1991 was to include a GSM license as an automatic upgrade once spectrum became available.
However, in the summer of 1995, Poland’s Parliament passed litigation to address competition and ruled that future telecom licenses must be awarded through public tender. Centertel was welcome to compete, but would not be granted a license automatically.
Months of negotiations were unsuccessful and by last January, Ameritech and France Telecom each launched separate arbitration proceedings.
Ameritech and France Telecom had proposed two concessions to the ministry. Prior to the GSM license awards, Ameritech and France Telecom said they would match the highest bid among other GSM contenders as payment for a GSM license, and offered to restructure the Centertel board of directors to give TP more representation. The ministry accepted neither offer, said Ameritech.
Two GSM licenses were awarded early in 1996 to Polska Telefonia Cyfrowa and Polkomtel. Each started service about three months ago. PTC, which calls its service Era GSM, is owned 22.5 percent by U S West Media Group. Polish investors hold the remaining shares. AirTouch International and Tele Danmark each hold a 19.25 percent stake in Polkomtel. Remaining shares are held by various Polish industrial companies. Polkomtel’s service is branded Plus GSM.
Prior to GSM service, cellular penetration in Poland was less than 1 percent. Centertel had about 125,000 subscribers in mid-1996.
