Telenor Xpress 1 - 2001

Southern Exposure

Known to many as the home of port wine, ancient Moorish castles and one of Europe's fasting growing economies, Portugal has recently awarded a third generation mobile license to ONI WAY, a mobile operator partially owned by Telenor.

"We are very pleased that ONI WAY has been awarded a licence in Portugal," says Arve Johansen, CEO of Telenor Mobile Communications. "Telenor will commit all available resources to ensuring Portugal a competitive and reasonably priced UMTS operation." According to Steinar Clausen, deputy to the CEO of ONI WAY, UMTS has significant potential in Portugal. "The Portuguese have demonstrated that they are quick to adapt to new technologies," Clausen says. He explains that while Portugal's fixed net penetration is around 42 per cent, the country's mobile phone penetration is around 65 per cent - and growing. With a government determined to invest in the development of the country's mobile infrastructure, Portugal's 3G mobile future looks bright.

Beauty contest
Portugal's licence was not offered by auction to the highest bidder, but by a process known as a "beauty contest." In this model, the cost of the licence is fixed (EU 100 million, in Portugal) and bids offered by competing telecommunications companies are evaluated based on certain criteria, including competence, experience, and technological know-how. According to Clausen, ONI WAY's bid was ranked first in four out of five different categories. The remaining three UMTS licences were awarded to Portugal's existing GSM operators: TMN, Telecel and Optimus.

Partners in technology
Telenor will be ONI WAY's technological partner, responsible for helping to build the UMTS infrastructure and adding value to existing operations. "Telenor is earning a good reputation for rolling out technology solutions for small to medium sized countries," says Clausen. "We have focused primarily on greenfield operations." Alone or through strategic partnerships, Telenor currently holds UMTS licences in Norway, Austria and Portugal. Through mHorizon and New Business, divisions of Telenor Mobile Communications, the company continues to evaluate new and exciting opportunities to provide mobile services internationally.