Denmark has completed its auction of the 700, 900 and 2,300 MHz bands, raising total proceeds of DKK 2.21 billion (EUR 296 million), the Danish Energy Agency announced. All four operators won frequencies in the 700 and 900 MHz band, while market leader TDC took the available lots in the 2,300 MHz band and 700 MHz SDL range.
3 Denmark acquired 2x10 MHz in each of the 700 and 900 MHz bands, for a total price of DKK 485 million. That compares to a minimum price of DKK 95 million for 2x5 MHz in each of the bands. It said the 700 MHz licence will enable it to provide 5G services and that expanding its 900 MHz resources from 2 x 5 MHz to 2 x 15 MHz will improve its outdoor and indoor 4G coverage.
In particular, the 900 MHz spectrum will extend 3 Denmark's geographic coverage, especially in rural locations. Customers will get faster indoor service, said CEO Morten Christiansen. He said the other participants pushed up the price in the 700 MHz auction unnecessarily but that 3 Denmark had still managed to get the spectrum it wanted. However, it pulled out of the 2,300 MHz auction because the price rose too high relative to the coverage obligations.
The 700 MHz and 900 MHz licences oblige 3 Denmark to provide reception in 67 selected areas at a minimum of 30 Mbps for downloads and 3 Mbps for uploads as well as voice service, by April 2022.
TT Network, the network joint venture of Telia and Telenor, acquired 2x5 MHz in the 700 MHz for DKK 107.6 million and 2x10 MHz in the 900 MHz band for no upfront cost, but a commitment to meet certain coverage obligations. Telenor said the companies decided not to bid for the 2,300 MHz band, as they already hold over 100 MHz in the 2,600 MHz range. Telia said the new licences will support continued development of the mobile network and the start of 5G testing in the second quarter of 2019.
TDC takes maximum lots
TDC took 2x15 MHz in the 700 MHz band, 2x10 MHz in the 900 MHz band, 60 MHz in the 2,300 MHz band and another 20 MHz in the supplemental downlink of the 700 MHz band. The total cost for TDC is DKK 1.62 billion.
The company acquired 14 of the in total 20 lots on offer, the maximum it was allowed under the auction rules. The group said the new licences will help it strengthen its 4G network and meet its aim of rolling out 5G across the country by the end of 2020.
The auction started on 19 February. It had been scheduled to take place last year, but was canceled at the last minute in September 2018 without a clear reason.
The licenses are valid for 20 years for the 700 MHz band and 15 years for the 900 MHz band. These frequencies carry coverage requirements in 212 areas around the country, representing around 6 percent of the territory and 19,000 homes and businesses. The operators will need to ensure speeds of at least 30 Mbps in these areas by April 2022.
