Archive for February, 2005

The Parliament Adopted the Amendments to the Constitution

Monday, February 28th, 2005

Pursuant to the amendments, effective as of the date of entry into force of the treaty of accession of Bulgaria into the European Union, foreign individuals and foreign legal entities can acquire title of ownership over land in three hypotheses: (i) under conditions ensuing from Bulgaria’s accession into the EU (however, subject to the agreed 7-year suspension period after the accession), (ii) in case of ex lege inheritance, or (iii) by virtue of international treaties ratified by Bulgaria after its entry into the EU. In the last case, it is required by the Constitution that the ratification statute be adopted by a 2/3 majority of all MPs, i.e. at least 160 votes.

Borislav Boyanov & Co. as a member of AmCham and BIBA took an active role in the discussions in the parliamentary commissions, through which the draft went, thus helping for the preparation of the proposal promoting the abolishment of the ban on sale of land to foreigners.

CRC Opens Tenders for 3 UMTS Licenses

Thursday, February 3rd, 2005

The Communications Regulation Commission (CRC), the national regulatory authority in the field of telecommunications, announced three open tender procedures for issue of three individual licenses for carrying out third generation telecommunications through public telecommunications mobile cellular network (UMTS standard) with national coverage. The tenders will be for granting of the following licenses: one Class A license with capacity 2 x 10 MHz + 1 x 5 MHz, with initial license fee of 70 million BGN and term of the license 20 years and two Class B licenses with capacity 2 x 5 Hz + 1 x 5 MHz, with initial license fee of 42 million BGN and term of the license 20 years. Licenses can be issued to persons meeting the following requirements:

(i) to have experience in carrying out telecommunication activity;

(ii) to have over 500,000 users of the telecommunication services, which they provide;

(iii) to have made more than €50 million annual turnover from the provision of telecommunication services in 2003; and

(iv) they are not consortia of two or more telecommunication operators, possessing individual licenses for carrying out telecommunications on the territory of the Republic of Bulgaria through a public telecommunication cellular network under the GSM standard.

The tender for class A license is scheduled for March 30, 2005 and the initial bid will be BGN 70 million. The two tenders for class B licenses will be on April 5, 2005 and the initial bid is BGN 42 million. The candidates are required to provide a deposit for participation at the amount of BGN 2 million. For more information you may contact Mr. Damian Simeonov at d.simeonov@boyanov.com.