Hrvatski Telekom, Vipnet Bid in Croatia Mobile Frequency Auction

Oct. 28 (Bloomberg) -- T-Hrvatski Telekom d.d, a unit of Deutsche Telekom AG, and Vipnet d.o.o., a subsidiary of Telekom Austria AG, filed offers in a mobile-frequency auction aimed at boosting services in the Adriatic state.

The decision to assign licenses to use two 800 MHz-range blocks of frequencies until 2024 will be taken by Nov. 26, the state telecommunications regulator said in an e-mailed statement today.

Hrvatski Telekom offered 105 million kuna ($19 million) for each of the two blocks on sale, while Vipnet offered 110.14 million kuna for one block, the regulator said. The two companies were awarded frequencies in October last year of a combined 40 MHz, for which they jointly paid 300 million kuna.

“The government, besides receiving additional funds through the issuance of licenses, also expects to boost investment in broadband Internet infrastructure related to mobile communications networks,” the regulator said by e-mail. “It can significantly narrow the gap between urban and rural areas when it comes to density of broadband Internet.”

To contact the reporter on this story: Jasmina Kuzmanovic in Zagreb at jkuzmanovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net