The consortium of cable operators Telenet and Tecteo (Voo) has won Belgium's fourth 3G licence for EUR 71.5 million. Telenet Tecteo Bidco was the only bidder for the licence, which also gives an option on GSM spectrum. The bid matches the minimum price for the licence and will be paid in annual instalments over the life of the licence, which runs to March 2021. The consortium will have a total 2x14.8 MHz in the 2.1 GHz band. It also plans to use the call option for 2x4.8 MHz in the 900 MHz band and 2x10 MHz in the 1800 MHz band, for a total price of EUR 31.5 million. The 2G spectrum will be available from November 2015, with the licence running concurrent with the 3G rights. All the licences are technology-neutral. Telenet operates as a MVNO already since 2006 and has around 210,000 mobile customers. The spectrum is expected to strengthen its 'challenger' position on the Belgium market, giving it the chance to offer mobile broadband services with technologies such as LTE. It also offers an insurance policy against future capacity shortages on mobile networks and ensures Telenet attractive conditions to enter the mobile market. Under certain conditions, the spectrum can be traded, aslo lowering the investment risk. Telenet said it plans to use the frequencies with maximum capital efficiency, making as much use as possible of its existing infrastructure and seeking to work with the other mobile operators. The licences are expected to have a limited impact on cash flow, with estimated annual costs of EUR 8.0 million to 2014 and EUR 13.5 million thereafter. Telenet initially will be the sole owner of the new licence, a company spokesman told Datanews.be. Voo parent Tecteo will take a 26 percent stake in the licence company, Telenet Tecteo Bidco NV, within the next few weeks.
