The state telecommunications agency, RATEL, announced the tender for a second landline operator in Serbia on Nov. 20.

The only current landline operator in Serbia is the state-owned Telekom Srbija, which had about three million users at the end of 2008.

According to the competition published in daily Politika, telecommunication companies that have more than a million users of their telecommunication services and an income of over EUR200 million in 2008 can participate in the tender.

The most favorable offer will be selected based on the amount offered for licensing the landline service, and if at least two offers qualify, there will be an auction held at which the starting price will be the highest offer given in the licensing.

The conditions for participating in the tender include paying a deposit or leaving a banking guarantee of EUR10 million, and registration for tender documentation will be able to be applied for from Nov. 20 to Dec. 3, which will cost RSD25,000 and EUR500.

The deadline for bids is Jan. 12, 2010. The winner of the tender will be selected on Feb. 10, and a license will be given out in a period of eight days after the entire sum has been paid into the Serbian budget.

The licenses are issued for ten years with the possibility of extending them for another ten years in accordance with

regulations. If the winner of the tender does not have headquarters in Serbia, they must found a company in Serbia in which they will be the only owner and to which the license will be transferred.

Serbian Telecommunications Minister Jasna Matic said earlier that the new landline operator will give citizens a choice between operators and services. She added that the competition will not lead to a direct decrease in the cost of domestic calls, but it could lead to cheaper international calls.