Orange has taken on one of the four UMTS licenses available in Luxembourg, after the telecoms regulator in Luxembourg awarded them in a ‘beauty contest’. At present, Orange operates in many of Luxembourg’s neighboring countries but not in Luxembourg itself, making it an ideal candidate for a license.
Orange must keep to the following terms to keep its a license: pay a yearly fee of $189,000 or 0.2% of its 3G revenues, whichever is greater, to the Institut Luxembourgeois de Regulation (ILR) for a minimum period of 15 years. The operator also has to have the network up and running for commercial use by 2003
The deal will give Orange the opportunity to integrate its Luxembourg 3G network into roaming packages. The versatility that Orange can offer its customers in Europe should attract customers to its networks not only in Luxembourg, but across the continent. Including the new license, Orange will offer UMTS services in 12 European countries.