The Dutch mobile spectrum auction, started 29 June, has finished with total proceeds of EUR 1.23 billion. The three mobile operators KPN, VodafoneZiggo and T-Mobile Netherlands all acquired frequencies for respectively EUR 416 million, EUR 416 million and EUR 400 million.
KPN and VodafoneZiggo acquired additional frequencies in the 1,400 MHz band, resulting in the higher price than T-Mobile. The total bids exceeded by almost a third the reserve price of around EUR 915 million for the spectrum available in the 700, 1,400 and 2,100 MHz bands.
The 20-year licences come with coverage requirements to reach up to 98 percent of the population and offer progressive minimum speeds at the network edge, resulting in average speeds of around 100 Mbps for end-users. The 1,400 and 700 MHz bands will be available immediately for use, while the 2,100 MHz licences will start next year, when the current positions expire.
There were no other bidders in the auction than the three existing mobile operators. Additional spectrum in expected to be offered in 2022 when the 3.5 GHz band comes available for 5G services.
The 700 MHz band was the most expensive, as it's considered key to launching 5G services. KPN bought 20 MHz in the 700 MHz band for EUR 158 million, as well as 15 MHz in the 1,400 MHz band for EUR 95 million and 40 MHz in the 2,100 MHz band for EUR 163 million. KPN said it acquired an attractive range of frequencies at a reasonable price given the minimum prices, and it expects to launch its 5G network soon as a result.
Vodafone also acquired 2x10 MHz in the 700 MHz band, 15 MHz in the 1400 MHz band and 2x20 MHz in the 2,100 MHz band. The operator was the first to launch 5G services back in April using its frequencies in the 1,800 MHz band. It said the new spectrum will allow it reach near national coverage by the end of this month.
T-Mobile expects to activate its 5G network when it receives the new spectrum. The company bought 2x10 MHz in the 700 MHz band and 10 MHz in the 1400 MHz band and renewed its 2x20MHz in the 2,100 MHz. The operator spent EUR 11.8 million in the allocation round of the auction to ensure the positions of its frequencies.
T-Mobile already had a spectrum advantage on the other operators due in part to its takeover of Tele2. The company said it still found the auction reserve prices too high, and given the demand for data services, the bidding was competitive.
