Romania will re-direct all the money it will cash in this year from selling it telecom licenses to agriculture and to helping our farmers whose crops were affected by drought. The expected EUR 200 million this year will not go to the IT&C sector, as players on the market had been expecting. The announcement was made by Romanian Prime Minister Victor Ponta.

Pundits say investment in IT&C in Romania would shape for the better the public administration, which is in great need of upgrading its IT systems.

Romania is currently auctioning radio spectra frequencies, with the bid expected to bring a total of EUR 700 million, EUR 200 million of which will have to be paid by the end of November this year by the winners of the auction. The remainder will be paid by mid 2013.

Five companies submitted offers so far in the bid organized by the country's Communications Authority (ANCOM): Orange, Vodafone, Cosmote, RCS & RDS and 2K Telecom. The first four are already offering mobile telephony services in Romania and had paid to use the mobile spectrum in the country, but are now hoping to renew their licenses.

Following the tender this year, the new licenses for the bands currently owned by Orange Romania and Vodafone Romania will come into force at the beginning of 2013. For the bands currently owned by Cosmote, the new license will become valid in April 2014.

Vodafone and Orange paid USD 75 million each for their license back in 1996. Cosmote bought the rights to use the 1,710-1,785 MHz/1,805-1,880 MHz frequencies in 1998, valid for 15 years, for some USD 53 million.

editor@romania-insider.com