By Sean Carney
PRAGUE--Czech financial company PPF said Monday it had decided
not to bid for a license to operate a fourth-generation mobile
telephone network due to a new condition in the process set by the
telecommunications regulator.
PPF's withdrawal has boosted the share price of dominant
operator Telefonica Czech Republic (BAATELEC.PR), a unit of Spain's
Telefonica SA (TEF), as it removes the threat of well-financed
competition.
Radek Stavel, a spokesman for privately held PPF, said the
company had decided to withdraw from the auction because the Czech
Telecommunications Office, or CTU, "set an unprecedented condition
that effectively prevents a new company from gaining access to the
domestic telecommunications market."
The condition prevents a new player in the market from
partnering an existing operator that is also participating in the
auction for 15 years, PPF said.
As a result, PPF has sold its fledgling telecom unit PPF Mobile
Services AS, Mr. Stavel said.
Monday is the last day that interested parties can submit
non-binding expressions of interest in bidding in the auction for
new long-term-evolution, or LTE, frequencies among others.
The CTU, which aims to introduce a fourth operator to the market
through the tender, will announce the names of the companies that
are interested in bidding in the auction on Tuesday. Binding bids
are expected in the second half of November.
The two other operators active in the Czech republic are a local
unit of Vodafone Group PLC (VOD), and T-Mobile Czech Republic, a
unit of Germany's Deutsche Telekom AG (DTE.XE).
At 0935 GMT, Telefonica CR shares were up 2.7% at 300 koruna
($15.76), outperforming the broader Prague market, which opened
lower.
Write to Sean Carney at sean.carney@wsj.com
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