Mobilkom

Mobilkom (PTT until 1996), as part of the PTT that was spun off, was to provide mobile voice telephony also without a licence. Since July 1990, it had been providing services in the 900 MHz range (originally 2x13 MHz, since 1 Jan 2000 2x8 MHz) called "D network" (TACS system). In December 1994 it already provided GSM services (2x8 MHz) under the name A1 in urban areas and along main roads.

By means of a declaratory decision of 26 Nov 1996 it was confirmed that Mobilkom was entitled to provide the reserved telecommunications service by means of the analogue mobile telephony network in the 900 MHz range. Also by means of a declaratory decision of 26 Nov 1996 it was confirmed that Mobilkom was entitled to provide the reserved telecommunications service in the digital cellular mobile telephony range (GSM). For the licence Mobilkom had to pay ATS 4 billion, according to the licence fee paid by max.mobil.

max.mobil.

On 05.01.1996, the international consortium Ö-Call, later max.mobil., was the second mobile operator to be granted a licence (limited until 31.12.2015) for the operation of a GSM network (2x8 MHz in the 900 MHz range) against payment of ATS 4 billion and started service the very same year (October 1996).

Connect

The third mobile operator Connect obtained the licence for the GSM 1800 frequencies for ATS 2.3 billion on 27. 08. 1997, limited until 31. 12. 2017. Connect has been providing its services via the GSM network since October 1998.

For the allocation of additional frequencies to existing licensees for the provision of the reserved telecommunications service by means of mobile radio in the digital cellular mobile telephony range pursuant to Art. 125 (3), see section III.1.3.2.5.

III.1.3.2.2 Allocation of the fourth GSM licence

On the basis of Art. 125 (3a) TKG added by the amendment BGBl I No 98/1998 (see Info Box 8) the award of the fourth GSM licence started in autumn 1998. The tender notice was officially published on 21.12.1998, the tender period ended on 24.02.1999.

Until then three applications had been received. The review of the technological and economic prerequisites according to Art. 15 (2) led to the exclusion of one applicant. The remaining two applicants were admitted to the auction. Due to the fact that one applicant declared shortly before the start of the auction that, during the auction, he would not increase his first bid stated in the licence application and subsequently did not participate in the auction, on 03.05.1999 the licence was finally awarded to tele.ring. The frequency usage fee offered by tele.ring was ATS 1.35 billion. The allocated frequency spectrum is 14.8 MHz from the 1800 MHz range.

III.1.3.2.3 Award of a licence for a digital trunked radio system (TETRA)

Starting in February 2000, additionally, a licence was awarded for the provision of the public voice telephony service by means of mobile radio and other public mobile radio services by means of self-operated telecommunications networks for the digital trunked radio system TETRA.

At the beginning, a public consultation was held by TKC. After analysis of the results the invitation to tender was prepared and published on 20.09.1999. The period for submission of tenders ended on 29.11.1999.

By that time applications from three companies had been received. The review carried out subsequently pursuant to Art. 15 (2) TKG showed that all applicants fulfilled the basic prerequisites for the award of the licence. Therefore, all three applicants were to be admitted to the auction which was held on 03.02.2000. The minimum bid originally specified in the tender documents was ATS 5 million. However, one bidder submitted a first bid of ATS 10 million already in the application.

The auction followed the multiple round format. The bidders had the opportunity to outbid the respective highest bid of the previous round at least by the minimum increment determined by the auctioneer. Finally, TetraCall succeeded as highest bidder with a bid of ATS 66.5 million. The licence was then awarded on 07.02.2000.

III.1.3.2.4 Other licence awards in the mobile sector

In 1999, a licence was furthermore awarded to Telekom Austria for the provision of the public voice telephony service by means of mobile radio and other public mobile telephony services by means of self-operated telecommunications networks for the terrestrial flight telephone system (TFTS). This is a telephone system which allows to make calls in aeroplanes. Contrary to the satellite systems currently used, TFTS uses a terrestrial base station.

Moreover, after holding a tender which had started in March 1999, a licence was awarded to Datatrak for the provision of the public mobile telephony service for position detection and data exchange in real time by means of self-operated telecommunications networks.