Romanian telecom RCS & RDS analyzes virtual telephony operator option, says frequency price too high

Romanian telecom company RCS&RDS is currently analyzing the possibility of launching additional mobile telephony services via a virtual mobile telephony operator, which would mean using the mobile networks of companies like Vodafone, Orange and Cosmote, according to Ziarul Financiar, quoting Valentin Popoviciu, RCS & RDS' development director.

RCS&RDS already offers mobile telephony services in Spain and Italy by using other companies' networks in those countries. The company also offers mobile telephony services covering only several cities in Romania. Popoviciu also said the asking prices for mobile telephony spectra in Romania are high, and that National Authority for Management and Regulation in Communications (ANCOM) should have taken into account the market situation in Romania. A previous analysis by ANCOM showed that Romanian telecom company RCS & RDS is at a disadvantage compared to the operators who have a spectrum in the 900 MHz band. Romania will sell 56 blocks of mobile telephony frequency spectra in a bid set for later on this year, with starting prices ranging from EUR 800,000 to EUR 40 million. ANCOM published the task book and the details of the bid earlier today, which is set to start in seven weeks. The results of the bidding selection should be announced in two months, while the actual licenses will be granted by November 2012 and July 2013 depending on the frequency category. ANCOM recently drafted the guides for virtual mobile operators in Romania, so that companies without rights to use frequency spectra could still offer services to Romanian clients. Companies interested in offering such services in Romania must notify ANCOM at the start of activity and will ask for mobile telephony numbers from the authority. They will be free to negotiate interconnection agreements with any mobile or landline communication services supplier in the country. editor@romania-insider.com