Telenor receives license for second fixed-line operator

February 19, 2010 - In the presence of the country’s top-ranking officials, Telenor received the license for Serbia’s second fixed telephony operator during a reception at the Company’s headquarters in New Belgrade today.

Prime Minister Mirko Cvetković and Telecommunicatons Minister Jasna Matić again welcomed the new operator as Telenor CEO Kjell Morten Johnsen received the license from Milan Janković, President of the Public Tender Commission and Executive Director of the Serbian Telecommunications Agency (RATEL).

“We are very pleased to be awarded the second license for fixed-line telephony in Serbia. Having this license, we hope we can move even faster in providing broadband Internet access in the Serbian market. This will lead to higher growth and more new jobs in the Serbian economy. We are ready to do our part when it comes to investing in infrastructure and will soon forward our request to RATEL to have the prices and access to Telekom Serbia’s infrastructure regulated in accordance with international standards,” says Kjell-Morten Johnsen, CEO of Telenor in Serbia.

Telenor’s license puts an end to the monopoly in the fixed telephony market, making room for substantial new capital investments in infrastructure, and paving the way for innovative and diversified services for Serbian citizens. It is valid for ten years, with an option of extending it for the sam period. Telenor must launch commercial services within one year after the issuance of the license.

After RATEL launched the public bid for the license on November 20, 2009, four companies acquired the documentation: Telenor, Vip mobile, Kerseyco Trading Limited, and Konsing Group, but only Telenor applied for the license on January 12, 2010. Three days later, Telenor’s offer EUR1,05 m was made public.

On January 21, 2010, the Serbian Government accepted the offer and one day later the Board of Directors in the RATEL issued the license to Telenor.