"Konsing": Documentation for participation in tender was incomplete

Serbian-American company "Konsing" announced today (January 12, 2010) that it gave up participation in the tender for the second fixed telephony operator in Serbia because the documentation was not complete.

According to the announcement, the documentation that "Konsig" bought did not comprise the key elements for business plan, including the price of services for use of infrastructure.

- The price of services that are to be provided by the operator with significant market share, including access to local hub, collocations and use of transportation capacities, was not defined in the documentation. We did not even receive the prices of these services in the answer to the question asked to the Republic Telecommunications Agency (RATEL). We were informed that the prices would be agreed directly with the operator with significant market share, with possible mediation of RATEL. Also, there are no guarantees that the prices agreed in that way would not be changed, or information on minimum time period until the announcement of the first next auction for granting the license for public fixed telecommunication network - it is stated in the announcement.

As it is pointed out, US company "COMgroup International", which is the majority owner of "Konsinga", has established the contact with two large US telecommunications operators that were interested in partnership investments in the second fixed telephony operator in Serbia.

People in "Konsing" pointed out that, due to incomplete tender documentation, they were unable to provide the information to foreign partners on the volume and profitability of investments in that project, and that was the reason why they had given up submission of the bid for the license.

"Konsing Group" will stay present in the telecommunications market in Serbia and work on development of infrastructure in accordance with the Board for Provision of Internet Services and the Consent for provision of VOIP services that the members of the group have.

- We hope that the Ministry of Telecommunications and IT Society and RATEL will keep working on liberalization of the telecommunications market in Serbia and that we will be able to attract foreign partners to invest in the projects of national importance at one of the future public auctions - people from that company announced.