Latvian Regulator Grants a Fixed-Line License to Mobile Operator LMT

15 May 2003 – According to a report by the Baltic Business Daily, Latvia's public services regulator has awarded a fixed-line telecommunications license to Latvijas Mobilais Telefons (LMT), Latvia’s largest mobile operator.

The regulatory commission issued a license to LMT allowing the company to offer public local and international fixed-line voice services, public data and electronic messaging services, leased lines and public Internet access.

The terms of the license are comparable to those granted to competing mobile operator Tele2, the essential difference being LMT does not plan to establish a fixed-line subsidiary. LMT previously said that they applied for a fixed-line license to expand services for existing customers. LMT president Juris Binde said that his company will decide on the fixed-line services to be offered to clients after analysing the demand, competitive pressures and the terms of the interconnection agreement.

Tele2 already has a fixed-line telecommunications license and expects its subsidiary for fixed-line services, Tele2 Telecom, to become commence operations in 2003.

Lattelekom, the former monopoly fixed-line provider in Latvia, saw its monopoly end at the beginning of 2003. It is expected that Lattelekom's largest rivals in the fixed-line market will be Latvian Railway, Latvenergo electricity utility and Aeronavigacijas Serviss (ANS, Air Navigation Service), Tele2 Telecom and LMT.

23% of LMT is owned by Lattelekom and the state-owned Digitalais Latvijas Radio un Televizijas Centrs, TeliaSonera owns 48% and the Latvian Transport Ministry owns 5%. 49% of Lattelekom is held by TeliaSonera, the remaining portion is state-owned.

Intelecon Research & Consultancy Ltd. 15/05/2003

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