Telekom-Control GmbH (TKC) to allocate WLL Frequencies: Auction begins on February 5, 2001

Press release dated 15 January 2001

Telekom-Control GmbH, Austria's telecom supervisory authority, plans to start the auction for WLL packages in the 26GHz frequency range on February 5, 2001. Five concrete frequency packages in each of six regions will be auctioned off; the packages have been assigned varying bandwidths and conditions of use. The total of all minimum bids is ATS 50.4 million. Additional information on the auction, as well as application documents and the Rules of Procedure, can be downloaded from TKC's web site.

The auctioneer will be Telekom-Control GmbH (TKC), represented by CEO Dr. Heinrich Otruba. In the amendment to the Telecommunications Act (TKG) set forth in BGBl I No. 26/2000, the responsibility for WLL frequency allocations was transferred from the Telecommunications Offices to Telekom-Control GmbH in June 2000.

Two-Stage Frequency Allocation Procedure

The frequency allocation procedure is divided into two parts: The first stage involved a review of applicants to ascertain that they fulfill all technical and economic prerequisites pursuant to § 49a Par. 1 of the Austrian Telecommunications Act (TKG). In the second stage, the auction will be carried out in an open, ascending, simultaneous, multiple-round format. In the course of this procedure, all frequency packages will be auctioned off at the same time.

Seven Applicants Admitted to Auction

The following seven companies have been admitted to the auction in February: BroadNet Austria GmbH, Callino Gesellschaft für Telekommunikationsdienste GmbH, European Telecom International AG, max.mobil. Telekommunikation Service GmbH, Mobilkom Austria AG, Star 21 Networks GmbH and Tele 2 Telecommunication Services GmbH.

Decentralized Auction Procedure - Bidding using Auction Software

The auction will not be carried out in a central bidding venue, as has been the case in previous auctions. Bids will be placed using PCs with ISDN connections and an auction software program supplied by Telekom-Control. Submitted bids will be verified by means of security certificates, likewise provided by the auctioneer. Interested parties can track the progress of the auction online at, which starts at 10:00am on February 5, 2001.

WLL – A Radio Bridge over the Last Mile

WLL technology allows network operators to connect customers to their networks using a radio communications system. This means of bridging what is called the "last mile," the connection between the subscriber and the local switching station, will thus no longer use conventional subscriber lines.

The new technology supports voice telephony and – more importantly – broadband data transmission services, which translate into high-speed Internet access.