Deutsche, France Telecom to pay $126 million for Slovak license extension

Reuters

Telecommunication companies Deutsche Telekom (Bonn, Germany) and France Telecom (Paris, France) have to pay a total $126 million for a 10-year license extension of their Slovak units, the Slovak telecommunication regulator said on Wednesday.

France Telecom, running Slovensko Orange -- Slovakia's largest mobile and internet services provider in terms of number of clients -- will pay $57.7 million.

Deutsche Telekom will pay $67.9 million for its T-Mobile Slovensko unit's licence.

The regulator said the size of the fee was calculated using anticipated trends in average revenue per user (ARPU) and outlook of number of clients until 2021. The operators can appeal against the ruling.

Orange Slovenko's net profit fell 6.8% to $263.8 million last year. T-Mobile Slovensko's parent company Slovak Telekom Group, run by Deutsche Telekom, saw net profit drop 17% to $171.6 million last year.

The levy on operators comes with the government of Prime Minister Iveta Radicova looking for ways to boost revenues to secure pledged fiscal consolidation plan, backed by a package of tax hikes and spending cuts.

(Reporting by Martin Santa; Editing by Dan Lalor)

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