Zapp is investing €37 million in 3G

"Zapp will launch a full commercial 3G service offer in 19 of the largest Romanian cities sometime in the first six months of 2008," Carmen Lazar, Head of Corporate Affairs Telemobil, told Business Standard.

The company has already applied for one million numbers and the 3G service will initially include video and mobile broadband and multimedia content.

So far, Zapp has paid a first installment for the 3G license worth $10.5 mil-lion (about €7.8 million) of the total cost of $35 million (approximately €26 million).

Telemobil and RCS&RDS were winners of an auction organized by the General Inspectorate for Communications and Information Technology (IGCTI) in 2006 for the remaining two 3G licenses. The first local owners of 3G licenses are mobile phone operators Vodafone Romania and  Orange Romania. RCS&RDS announced it will launch a commercial offer on the 3G mobile phone service segment in the  coming 3-6 months.

Telemobil approved the issue of bonds totaling $125 million (€92.9 million) in a General Shareholder's Meeting on 26 April. According to company officials, the bond issue is considered a quick and  effective means for attracting funds for more rapid general development of the company. "In 2007 we will offer prepaid products for voice services on the market. Also, we will increase the download speed to 3.1 Mbps, and launch 3G pre-commercial services by the end of 2007," Carmen Lazar added.

Zapp is based on code division multiple access (CDMA) technology over the 450 MHz bandwidth. The Romanian operator is controlled by the American Qualcomm company and Omnia Holdings Ltd, a  Middle Eastern investment fund. Zapp has approximately 500,000 customers.