Serbia Opens Tender for Second Domestic Fixed-line Carrier

The bidding deadline is 1100 GMT on January 12, 2010, Serbia’s Telecommunications Agency (RATEL) said in a statement posted on its website.

Eligible bidders are companies registered as telecommunications operators with total revenue exceeding 200 million euro ($296.5 million) in 2008 and with more than 1.0 million subscribers, the statement said. 

The procedure is also open to any entity intending to perform telecommunications activity which deposits 10 million euro into the agency's foreign currency deposit account with the National Bank of Serbia (NBS) or presents to the agency an irrevocable first-class bank guarantee payable on first demand to the amount of 10 million euro, RATEL said, adding that the bank guarantee may be issued only by an A-list bank as set by NBS.

"The first phase of the public bidding procedure will be carried out through the collection of Bids, whereas the second phase shall also include a public auction procedure, in case at least two qualified Bids have been submitted," the statement said.

RATEL will issue the licence for a period of 10 years, with an option for a 10-year extension, the statement said.

The minimum (initial) amount of the one-off licence issuance fee will be determined according to the highest amount offered in the submitted bids.

Potential bidders will be able to purchase the tender documents between November 30 and December 4.

RATEL will open the bids at 1130 GMT on January 12 and make the selection by February 10, the statement said.

State-owned Telekom Srbija is the sole provider of fixed-line services in the country of some 9.0 million people. It also controls some 70% of the domestic wireless services market through its unit MTS.

($=0.6751 euro)