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Cable companies accuse UTI monopoly in NetCity project, claiming bankruptcy is imminent

de Radu Rizea     HotNews.ro
Joi, 6 martie 2008, 9:17 English | Business

The optic fiber concession in Bucharest, offered by the City Hall and won by UTI Systems, is not a functional project and it will lead to the bankruptcy of cable service providing companies, said Radu Petric, president of the Cable Communication Association (ACC). The City Hall responds that it does not prevent other operators build their own underground optic fiber networks, but that companies will not do it, since it is not profitable.

"The NetCity project is put up by incompetent employees in the City Hall, with a chaotic thinking. 30 kilometers of optic fiber are already buried and now they wait for the concession to be approved, so that they get their money back. Nobody wonders what will happen in case the concession is not approved. There will be money spent for nothing with optic cables left in the rain", said the ACC president.

According to Radu Petric, the concession will lead the cable communication services towards a UTI monopoly. "The people in the City Hall first said that the backbone will not cost more than 35,000 euro per kilometer. Not it is already 250,000 euro and UTI will have to find a way to recover the money it pays to the City Hall. That money will come from us, the companies that rent the optic fiber", said Petric.

The concession contract refers to replacing the aerial network, which uses electricity and public transport pillars, with an underground network. 
























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