Denmark’s government has accepted bids for personal communications licenses and is pleased with the amount of interest it received, reported the U.S. Department of Commerce.
Five entities filed tender documents for one of perhaps five nationwide Digital Cordless Services 1800 licenses, which were expected to be offered several months ago.
Denmark’s cellular operators Tele Danmark and Sonofon, as well as France Telecom International Mobiles, NetCom Systems of Sweden and Telia AB of Sweden entered the contest, reported Commerce.
The government would not specify how many licenses will be issued, but available spectrum limits the number to five. Winners are expected to be announced in mid-March.
Earlier this year, Feinn Petersen, head of the regulatory division in Denmark’s National Telecom Agency, said parties would be judged heavily on the service rates they intend to charge, as the Ministry of Research and Information intends for Danish mobile service operators to offer the least expensive wireless digital voice service in the world by 2000.
Projected coverage is another key criteria in evaluating candidates.
A tender was expected to occur last July, but legislation changes involving the telecom market and operating conditions pushed back the NTA’s schedule.
Tele Danmark and Sonofon operate Global System for Mobile communications cellular networks and are not precluded from the PCN competition.
Tele Danmark is owned 51 percent by the government and other shares are held by individuals and traded on the New York Stock Exchange. Sonofon is the network name for Dansk Mobile Telephone. Minority partners in Sonofon include BellSouth Corp. and Great Northern Telephone Co.
In January, Denmark’s cellular penetration rate was between 12 percent and 14 percent, reported Petersen. The population is about 5.2 million.