TELECOMS: ETEL, the Dublin-based telecoms company that operates in central Europe, is expected to receive a licence next week that will enable the firm to offer lucrative new services in Hungary.
The move follows the Hungarian telecoms regulator's recent decision to move forward with market liberalisation and promote greater competition.
Etel also confirmed yesterday that it is still interested in buying the central European operations of telecoms firm GTS, which is being acquired by KPN Qwest.
A previous Etel bid for GTS's central European operation was rebuffed by the firm in favour of KPN Qwest's offer.
But Irish entrepreneur Mr Sean Melly, founder and chief executive of Etel, said yesterday the firm had already opened a dialogue with KPN Qwest about buying out these operations.
KPN Qwest is expected to complete the acquisition of GTS within the next few months and may be willing to sell off some parts of its business in central Europe.
Mr Melly said Etel had received positive feedback from its investors about raising the required finance to do a deal with KPN Qwest. It is estimated this deal would cost up to $200 million (€224 million).
Meanwhile, Etel is expected to receive a boost from its Hungarian firm next week when the national regulator is expected to allow the firm to offer new services.
A new licence due to be awarded by the regulator would enable Etel to provide lucrative long-distance and international calls to its clients.
It would also dramatically reduce the cost of providing these services by facilitating interconnect with Matav, Hungary's incumbent operator.
Etel applied to the Hungarian telecoms regulator last month to be among the first firms to take part in this phase of market liberalisation.
Six other firms made similar applications, including Vivendi Telecom Hungary, PanTel Rt, KábelNet Kft, Matáv Rt, MatávCom and Global.
Mr Melly said the new licences would take liberalisation in Hungary further than in any of its other eastern European operations.
He said it would enable the firm to introduce carrier pre-select technology, which enables customers to select alternative firms for service while retaining a billing relationship with incumbents.
