Competitors should compete with service quality and variety instead of loud announcements on the media, LETA was told by Latvijas Mobilais Telefons LLC (LMT) President Juris Binde, commenting on the situation in the field of electronic communications procurement.
Binde said that in recent months there have been multiple reports about electronic communication service procurements in which organisers were accused of giving preference of one other other contender even before the start of procurement procedures.
“In most cases these claims turned out unjustified and the procurement procedure – fair and honest. The problem was that one of the contenders competing had perceived the criteria as unfavourable to them, which is not a reason to force procurers to abandon their important criteria,” said Binde.
He stresses that in the context of tenders for the selection of electronic communications providers, there is often confusion in the public about the compliance of the criteria with legal requirements and concerns about “distortion of competition”. “On the one hand, it can be said that discussions are the cornerstone of a healthy, democratic society, and on the other hand, it must be acknowledged that the long-standing dominance of one point of view can increase the misconception of the true situation,” said the president of LMT.
He said that the mobile data transmission network infrastructure in Latvia is composed by three mobile network operators. In the fight for customers, who demand widely available, reliable and quality services, operators perform enormous investments into the development of their respective networks year after year. For example, LMT invests more than EUR 30 million towards infrastructure development year after year. Currently LMT network has more than 1 600 stations.
Binde explains that improving the availability and, consequently, the quality of mobile communications by investing in infrastructure is expensive and also affects the price of services, however, “what does a low price give if the service is of poor quality and little available?”.
He also mentions that previously complaints mostly concerned the coverage of the network.
Now, however, this is not the only criterion for mobile network availability customers usually complain about. At present, the need for various organisations and public administrations to communicate with employees in all circumstances through different electronic environments, including communication services, is also being questioned.
Binde comments that a wide and stable network coverage plays a decisive role when a crisis strikes (rescue efforts, for example). This is why uninterrupted availability of mobile communications and a stable, quality coverage is a notable advantage for the uninterrupted functioning of many institutions.
At the same time, Binde notes that the customer has the right to choose the service provider that suits his needs. “Instead of complaining, it would be more productive to focus our energy on raising the quality of services, innovations and, together, promoting the productivity of the Latvian economy, public welfare and international competitiveness,” says Binde.
Bite Latvija LLC turned to the Competition Council in April, complaining about the anti-competitive conditions in the procurement of mobile communication services of P. Stradins Clinical University Hospital (PSKUS). Last year, Bite Latvija turned to the Competition Council again regarding the practice of customers to include the requirement to ensure the availability of the Multi-SIM and e-SIM service in roaming in the technical specifications of the procurement.
Tele2 LLC previously refused to participate in a procurement organised by Latvian Post. The company explained its decision by saying that the conditions set in the procurement were clearly intended for a single market player. Tele2 also previously submitted a claim to a court of law against Procurement Monitoring Bureau (IUB), contesting the requirements of the Ministry of Finance (FM) and its subordinate institutions in the procurement for mobile communications services. This claim was dismissed by the court.
Information from Firmas.lv shows that the LMT Group last year operated with a turnover of EUR 310.269 million, which is 6.7% more than the year before, but the group’s profit increased by 0.6% and was EUR 32.069 million.
49% for LMT capital is owned by the Swedish Telia Company and its subsidiary Sonera Holding, 23% of shares are owned by Tet LLC and the Latvian State Radio and Television Centre, and 5% – by “Public Asset Manager “Possessor”” LLC.