German 700 MHz auction attracts 3 bidders

Nieuws Mobiel Duitsland 22 APR 2015
German 700 MHz auction attracts 3 bidders
The German spectrum auction for in the 700 MHz, 900 MHz, 1,500 MHz, and 1,800 MHz bands will start on 27 May with three participants: Telekom Deutschland, Vodafone Germany and Telefonica Deutschland, according to the German network regulator BNA. BNA president Jochen Homann expects the auction should result in a faster roll-out and more mobile broadband coverage in Germany's rural regions. The total spectrum up for sale in the auction amounts to 270 MHz.

This includes 2x30 MHz in the 700 MHz band freed up from the switch to DVB-T2 technology. The spectrum will be split into lots of 2x5 MHz. Minimum bids will be based on fees set in 2013, namely EUR 75 million per lot. The 700 MHz licences will include additional conditions such as nationwide (98%) coverage of at least 10 Mbps mobile broadband services with at least 95 percent of all states and 99 percent of all city states covered as well as 100 percent of the federal highways and ICE train tracks. If these conditions are not reached within three years after the start of the licence, a deployment obligation will be enforced with a reasonable time-frame.

The 900 MHz and 1,800 MHz spectrum are currently in use for GSM services. To protect the current infrastructure, BNA has set a cap of 2x15 MHz per provider (3 blocks) with a minimum bid of EUR 75 million for the 900 MHz band. A 1,800 MHz block will cost a minimum of EUR 37.5 million and a 1,500 MHz block is to cost at least EUR 18.75 million. The licences will be technology-neutral and valid until 31 December 2031. This auction is the second multiband auction in five years, following the auction in 2010 that included 800 MHz spectrum and ended with a yield of EUR 4.385 billion.

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