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Monday, July 24, 2006

Telekom Austrian Upcoming Auctions

Over the next month the results of three auctions will be published which are absolutely crucial to Telekom Austria Central European plans.

The first is finally the auction on 31st July of Mobi 63. The Austrians have been chasing this one down for 12 months and really is a key asset in the region.

The second is the auction of Telekom Srpske which is the PTT of the old Serbian bit of Bosnia-Herzegovina, but has a nationwide cellular license again this is a key asset. I'm not sure of the actual date, but it will proably be soon after the Serbian auction.

The third which is much more difficult for shareholder returns is the auction via beauty contest of GSM/UMTS spectrum in Slovakia. The Slovaks have unsuccessfully tried to auction this before and personally I don’t see much difficult in Telekom Austria winning the auction if they really have the appetite to build a network from scratch in a fairly saturated market with two powerful incumbents (Orange and T-Mobile). In my opinion, the only thing the licence has got going from it is that Bratislavia is only 60km from Vienna and the sort of political connection which ensure a victory in a beauty contest.

I expect Telekom Austria to go all out for the Serbian and Bosnian licences: they will be expensive and Telekom Austria will need to leverage up.