Press Releases

Connect Austria to decide on industry partner in september

Location issue to be settled by end of August - Commercial aspects key to selection of backbone partners - Side sharing welcome


The newly chosen third mobile telephone service provider in Austria, Connect Austria, will take a decision during the second half of December regarding its future suppliers for radio equipment and switching equipment. The potential vendor may also be called upon for part of the network setup and will probably land contracts for the lion4s share of the planned 6.5 billion AS investment in network development.
A few weeks ago already, i.e., before it was awarded the license, Connect Austria advertised for bids on this major order. All important vendors in this field offered bids. When questioned by APA, Connect Austria Managing Director Robert Kremlicka stated that the bids received are currently being evaluated.
In this connection, Kremlicka emphasized that the fact that Ericsson and Nokia set up the test network in the Vienna Woods and in Vienna4s First and Fourth Districts does not mean that a preselection has taken place. According to him, it would be very possible to work with a combination of various manufacturers.
The search for a location for the booming company is also in full swing. Connect intends to take a decision by the end of August. At present, five prospective locations are still under consideration: three in Vienna, one in Eisenstadt, and one in the greater Graz region. The essential criterion will be short-term availability of the new location, for Connect plans to make the move already in mid-September of this year. At present, the young company employs 50 workers. This figure should climb to 250 by the turn of the year.
Connect4s agenda includes negotiations at various levels: For example, the newcomer to the mobile telephone market - the start of commercial operations is scheduled for Summer 1998 - is seeking contact with its competitors Mobilkom and max.mobil in order to be able to be able to share existing base stations. This so-called "side sharing", however, is not accounted for in the roll-out plan as a precautionary measure and would constitute a supplement, Kremlicka emphasized.
When it comes to integrating the base transceiver stations in the fixed network (backbone), Connect will hold talks with all possible vendors, i.e., especially with the Post, UTA, and tele.ring (Austrian Federal Railway and linked transport systems). According to Kremlicka, the interest expressed by UTA (see APA300) pleases Connect. However, the decision will be made according to commercial aspects; strategic alliances are not emerging at this time. The issue of who the future backbone partner or partners will be remains open. A decision in this connection will be taken within the next three months.