(Ondřej Daťka) Surprisingly, Komercni banka was reported as being a member of a consortium that is bidding for a nationwide Fixed Wireless Access (FWA) telecom license (not to be confused with the 3G UMTS license). Yesterday was a deadline for bids. Thirteen bids were registered. Three licenses are to be awarded, each for CZK 150 mil. License winners should be selected in September.
Other FWA bidders include Cesky Telecom, Ceske radiokomunikace, and a host of local and foreign telecom companies. The importance of FWA networks is that they provide an alternative technology for reaching the end customer. Given that Cesky Telecom dominates the domestic local-loop infrastructure (except for a very few locations, it has a monopoly in fixed-line telephony), its chances in the tender are considered low, and, in fact, its bid probably will not meet the tender criteria.
We do not think that there is any reason for any of the equities involved (KB, CT, Ceske radiokomunikace) to react at this stage of the tender.
Separately, the Czech Ministry of Finance estimates that the state could get over CZK 30 bil. for the UMTS (3G) cellular licenses. The method of UMTS licenses allocation (an auction, a beauty contest, or the direct allocation to existing operators?) and other related issues (three or more licenses?, etc.) are to be decided by the Cabinet in September.