MOBILE TELEPHONY : COMMISSION CLEARS CZECH 3G LICENCE AWARD.

The Czech Republic did not breach EU competition rules in granting a 3rd generation (3G) mobile telephony licence in 2005 to the operator Oskar (now controlled by Vodafone) for a fee of CZK2 billion (66 million). This is the conclusion announced on 21 December by the European Commission, which points out that "no other company was interested in the remaining two 3G licences at the conditions then set by the Czech authorities".

In 2001, Eurotel (controlled by Telefonica since 2005) and T-Mobile, two of the three GSM operators in the Czech Republic, were each awarded a 3G licence at a fee of CZK3.5 billion and CZK3.9 billion, respectively (105 million and 115 million).

Eurotel and T-Mobile subsequently complained to the Commission that the difference between the fees for the first two licences and for the third licence constituted state aid in favour of Oskar.

"NO DISCRIMINATION"

The...