Monday, June 1, 2015

German Spectrum Auction Exceeds Expectations

German regulators have structured 700-MHz mobile spectrum license rules to emphasize rural coverage, a task the lower-band 700-MHz spectrum is well suited to achieve. But it is the 900-MHz frequencies that are garnering the highest bid amounts in the current German spectrum auctions.

Though the analogy is not precise because the current German spectrum auction includes 700 MHz, 900 MHz, 1.8 GHz and 1.5 GHz frequencies, bidding already has exceeded expectations, reaching more than €2 billion (US$2.18 billion), above the minimum amount of €1.5 billion ($1.63 billion) set by German regulators.

By the end of round 32, Deutsche Telekom was the bidder with the highest spectrum bids.

Regulatory body Bundesnetzagentur earlier said firms early had submitted bids worth close to €761.9 million, in all the available bands.

Vodafone is also bidding in all four bands and has pledged €656.9 million, while Telefonica, had submitted bids worth €534.9 million.

The 900 MHz band--not the 700 MHz band--has gotten the highest bid amounts so far, at €715.6 million.

The 700 MHz band had bids worth €450.1 million, with the three top bidders (Deutsche Telekom, Vodafone and Telefonica Deutschland) having the top bids in two of the six

The auction which began on May 27, is the first in Europe to involve 700 MHz spectrum formerly used by TV broadcasters.

Germany is the first country in Europe to conduct an auction of 700MHz airwaves, which have until now been used by the broadcasting sector.

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