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U.K. cellular sale gets bids
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January 12, 2000: 2:23 p.m. ET
British government receives 13 bids in next-generation cellular license auction
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LONDON (CNNfn) - Britain received 13 bids Wednesday for five cellular licenses that are being auctioned by the government.
The new next-generation licenses will allow operators to provide enhanced voice and data communications, including Internet access via cellular phones.
The four existing cellular network operators -- Vodafone AirTouch, BT Cellnet, Orange and One2One - all made bids as expected, but were also joined by some unexpected entrants to Europe's third-largest mobile market, behind Italy and Germany.
Bidders had to place a 50 million pound ($82 million) deposit and analysts expect the licenses to fetch between 400 million and 500 million pounds each.
The auction is set to begin in March, and will probably last a few weeks, according to the state-controlled Radiocommunications agency, which is coordinating the process.
The government is almost certain to give a license to the four incumbent operators, say analysts, leaving the other candidates to fight it out for the sole remaining license.
Spectrum, a company owned by Richard Branson's Virgin Group, is seen as one of the leading contenders. Virgin already has a licensing agreement with One2One but said it will buy out its partner if its new-generation bid succeeds.
Cable operator NTL (NTLI) is also expected to bid, partly as a conduit for major shareholder France Telecom's (PFTE) ambitions to expand outside its home market.
Other registered bidders include Spain's Telefonica, U.S. telecom giant MCI WorldCom (WCOM), Ireland's Eircom and Crescent Wireless, a new company with a significant stake in Global Crossing (GBLX).
The lineup is completed by Epsilon Tel.Com, a unit of Japanese bank Nomura, Australia's One.tel and Montreal-based telecoms operator TIW (TIW).
Vodafone is the world's largest cellular operator, Cellnet is a subsidiary of British Telecom (BT-A), Orange was recently bought by Germany's Mannesmann (FMMN) and One2One was acquired in August for $13.6 billion by Deutsche Telekom (FDTE).
The so-called UMTS licenses will allow operators to offer high-speed Internet access, electronic mail and videoconferencing while on the move.
Spain is also auctioning next-generation licenses, and Germany and France are considering similar moves. 
-- from staff and wire reports
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