The German multi-band spectrum auction has concluded after 16 days of bidding with total proceeds of EUR 5.081 billion, the Bundesnetzagentur announced. That compares to a total reserve price for the 270 MHz of EUR 1.5 billion. Vodafone Germany spent the most, at EUR 2.09 billion, followed by Deutsche Telekom with total bids of EUR 1.97 billion and Telefonica Deutschland at EUR 1.20 billion.
Each operator obtained 2x10 MHz in the 700 MHz, with prices driven up the last days of bidding by Vodafone. In the 900 MHz band, Vodafone and O2 each obtained two blocks of 2x5MHz, while Deutsche Telekom gained three blocks. Vodafone took the most spectrum in the 1,800 MHz band, at 2x25 MHz, while T-Mobile took 2x15 MHz and O2 2x10 MHz. The unpaired spectrum in the 1,500 MHz band was split between Vodafone and Deutsche Telekom, with each acquiring 20 MHz.
The blocks in the 1,800 MHz band attracted the highest price, at bid of EUR 237.5-258.2 million per block of 2x5 MHz. The 900 MHz band sold for EUR 180.5-211.8 million per block, and the newly released 700 MHz band cost EUR 165.5-171.6 million per block, around double the reserve price of EUR 75 million.
The auction secures the future of GSM services in the 900 and 1,800 MHz band, as well as opens up new spectrum for LTE services. Germany is also the first EU country to release the 700 MHz band, to be freed up after the switch to DVB-T2 broadcasting. The 700 MHz licence carries additional licence conditions aimed at bringing faster mobile broadband to rural areas of the country and along roadways and train lines. Part of the proceeds of the auction will also go to the German government's plans for accelerating the roll-out of next-generation fixed broadband infrastructure in the country.
Telefonica said the spectrum acquired in the 700 MHz and 1.8 GHz bands will enable the company to further increase the density of LTE in major cities and rural areas. The 700 MHz frequencies supplement its earlier acquired 800 MHz spectrum for rural broadband expansion. After this auction, Telefonica Deutschland will hold in total 358 MHz of spectrum. The operator noted that particularly in the high spectrum of 1.8 GHz and above, the company has a comprehensive range to deliver high-speed data services in urban regions.
Deutsche Telekom said it was satisfied with the outcome of the auction. The 900 MHz band frequencies ensure the continuity of its GSM network, while the 1.5 and 1.8 GHz spectrum can be used to improve coverage in urban areas. With the award of the 700 MHz band, the operator will also be able to increase mobile broadband speeds and capacity for customers in rural areas.
Vodafone said the spectrum acquired will be used to enhance its 4G network, increasing data traffic capacity and speed on 4G while also improving voice quality on GSM services. In addition to maintaining its existing holdings and adding frequencies in the 700 MHz and 1.5 GHz bands, Vodafone significantly increased its spectrum in the 1,800 MHz band, from just 2x5.4MHz prior to the auction.
