AUSTRIA: WATCHDOG CALLS FOR LOWER MOBILE RATES

Article Abstract:

Austria's Telecom Control Commission has ordered the mobile phone operators Mobilkom Austria and Max.mobil to lower interconnection fees for the passing on of phone calls to other networks from Sch 2.20 to Sch 1.90. The same will apply to the third operator, One , from the beginning of 2001, while the fourth operator, Tele.ring, will be able to charge interconnection fees of Sch 2.70 for the time being. The head of the telecoms watchdog, Heinrich Otruba, estimates that the ruling will reduce interconnection fees by a three-digit million amount and urges the operators to pass on the cost reduction to clients. Mr Otruba points out that the prices for mobile phone calls in the mass market have remained largely unchanged since April 1999.

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Austria: Delays for UMTS

Article Abstract:

According to Harald Lakatha from consultancy firm Mummert & Partner, the six companies which bid for UMTS in 2000 will not be capable of supporting a significant market share before 2003 at the earliest. This is likely to put a financial strain on the companies as they will have to pay the interest on the loans they took out for the licenses for at least a year more than they first anticipated. In addition, the industry is unlikely to be able to produce the handsets required to support the new software in the timeframe that the six companies are anticipating operating under. Other new technologies such as bluetooth will also provide competition for UMTS providers.

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AUSTRIA: GSM FREQUENCY AUCTION DELAYED

Article Abstract:

The closing date for the auction for regional GSM frequencies in Austria has been extended to 26 March 2001. According to chief executive Boris Nemsic, Mobilkom is to seek the maximum of 10 MHz in order to meet capacity requirements. The company estimates that in 2001 the share of data communication out of total GSM communication will increase 3-fold to 10%. Currently Mobilkom has 13 MHz.

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