The TTK sold in total six spectrum blocks in the 800 MHz band, seven in the 900 MHz band and 15 in the 1,800 MHz band. All licences are technology-neutral, to be used for GSM, UMTS and LTE. The exact frequency assignments will be completed in the course of November.
A1 Telekom said it acquired four blocks of 800 MHz for total 40 MHz (including two blocks with regulatory conditions to provide mobile broadband to rural areas), six blocks of 900 MHz for a total 15 MHz (its holding was 20.2 MHz before the auction) and 14 blocks of 1,800 MHz for a total 70 MHz (its holding before the auction was 30 MHz). The company said that it focused on acquiring 800 MHz spectrum and retaining 900 MHz spectrum, but was able to acquire more than planned in the 1,800 MHz band in the so-called complementary round, which increased its spectrum holdings by 40 percent for a 3 percent increase in costs.
T-Mobile Austria acquired two blocks of 800 MHz for a total 20 MHz, six blocks of 900 MHz spectrum for a total 30 MHz (its holding was 25.6 MHz before the auction) and eight blocks of 1,800 MHz for a total 40 MHz (its holding was 50.8 MHz before the auction).
The third bidder, 3 Austria, did not win any spectrum in the 800 MHz band. It acquired two blocks of 900 MHz for a total 10 MHz (its holding was 1.6 MHz) and eight blocks of 1,800 MHz for a total 40 MHz (its holding was 50.8 MHz before the auction).
The licences for the 800 MHz spectrum are valid until 31 December 2029, and the licences for the 900 MHz and 1,800 MHz bands are valid until 31 December 2034. Each of the parties awarded frequencies will be under obligation to ensure that a defined level of mobile broadband coverage is provided by a stipulated date. For the 800 MHz frequency band, the auction rules specified a certain number of municipalities to be supplied service, with the aim of bringing broadband service to poorly covered rural areas. Penalties will apply if coverage obligations are not met. The three mobile network operators are required to deposit the frequency licence fee within four weeks of the allocation decision becoming legally effective.
Telekom Austria said it is happy about the auction result and claims that the current spectrum division has significantly reduced the viability of a potential new mass market MVNO. The operator will pay for the spectrum via existing cash reserves as well as additional debt. In light of the resulting impact on its balance sheet Telekom Austria said it intends to deleverage via operational cash flow generation to support the group’s BBB (stable) target rating.
T-Mobile Austria also welcomed the auction result and called on the Austrian minister for infrastructure, Doris Bures to increase the planned rural broadband investment financed by the auction yield, from the planned EUR 250 million (half of minimum auction result of EUR 526 million) to EUR 1 billion, as the auction results were four times higher than the expected minimum.
The operator also pointed out that the a lack of clarity remains over the user rights to the 1,800 MHz spectrum coming available from the beginning of 2016 or 2018 (depending on which block), but T-Mobile has the legal right for its current 1,800 MHz spectrum until the end of 2019. This issue needs to be resolved before operators start paying double for the same spectrum.
