ESIS extension / Poland / Alternative Networks / Update Memo 6

The following report outlines new developments in the past three months and the state of on-going developments.

1.1 Attitude of the incumbent operator towards alternative network providers

The strategic investor of Telekomunikacja Polska S.A. - France Telecom and Kulczyk Holdings consortium signed the agreement on 25 July of 2000 after completing negotiations to buy 35% of the Polish Government.

On 1 September Minister Tomasz Szyszko presented a draft call for tender for the Universal Mobile Telecommunication System UMTS, the third generation mobile telecom services. The deadline for consultancy was 15 of September 2000.

The aim of this call is to stimulate the country’s telecommunications infrastructure development and to ensure that Polish UMTS networks will become an integral part of the quickly consolidating mobile market. Consortia with an involvement of a global or pan-European mobile operator will be preferred. The launching of UMTS network operation by individual operators should take place between 1 January 2002 and 31 March 2002. The objective of the UMTS tender is to select 5 operators. Licences will be valid for 15 years. During negotiations with TPSA’s strategic partner, it has been promised that one of 5 planned UMTS licenses will be sold to TPSA. (Centertel, the mobile operator, is owed by TPSA and France Telecom).

UMTS licences will entitle license owner to provide telecommunications services in the territory of the Republic of Poland, in accordance with the European UMTS telecommunications standard. An UMTS licence will contain an authorisation to install and operate a telecommunications network, and an assignment of radio frequency spectrum in the 2 GHz band. The radio frequency under an UMTS licence will cover 20 MHz of frequency in the paired frequency spectrum (10 MHz in each of the following frequency bands: 1920-1980 MHz, 2110-2170 MHz) and 5 MHz in the unpaired frequency spectrum (1900-1920 MHz, 2010-2025 MHz).

Every future UMTS operator should guarantee for data transmission, with transmission capacity above 144 kb/s, coverage of 20% of the country population by the end of 2003, 40% by the end of 2005, and 60% by the end of 2009. For voice transmission: 25% of the country population by the end of 2003; 60% by the end of 2005; and 80% by the end of 2009.

It is probable that 3 long-distance operators, Netia 1, NG Koleje Telekomunikacja (KT) and Niezalezny Operator Miedzystrefowy NOM, will not start offering services until the end of year 2000. There is no satisfactory solution to the disputes of interconnection financial agreements and technical issues of connection points with the incumbent operator TPSA. The two long-distance operators, Netia 1 and NG KT, even expressed possibility that they cannot take their licenses if situation is not improved.

PTK Polska Telewizja Kablowa Sp. z o.o. (The Polish Cable Television) has got the license for provision of telecommunications services and authorization for the deployment and use of telecommunications networks. This license is for broadband data transmission services through nationwide cable TV networks. The service will start in December 2000 in Warsaw and Cracow. From 2001, the service will be extended to the other big Polish cities. Additionally Internet services will be provided by satelite Wizja TV. It is aimed to provide access to converged services: TV, Internet and telephone through one TV cable.

PTK is the biggest cable TV operator in Poland. It was founded in 1989 by @Entertaiment. @Entertaiment is owed by United Pan-Europe Communications (UPC) from 6.08.1999. PTK will change its name to UPC Telewizja Kablowa soon.

The level of investment is estimated at 6 million Euro at start and up to 10 million during next 5-6 years.

Elektrim Group EL provides integrated telecommunication services based on cable TV Aster City Net in Warsaw. By the end of 2000 broadband access will be available for 50 000 home users. 600 000 home users in Warsaw will be served up to the year 2003. These services will be extended to other Polish cities as well.

EL is going to invest 100-130 million euro to develop telecommunication optical backbone network infrastructure.

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.