Norway has completed an auction of mobile spectrum in the 700 MHz and 2.1 GHz bands in two days. The smallest operator Ice was the biggest spender, acquiring frequencies in both bands, and Telenor and Telia also bought licences for the 700 MHz band. In total, the auction raised NOK 735 million (EUR 75 million).
Ice acquired the 2x15 MHz offered in the 2.1 GHz band for the minimum price of NOK 75 million as well as 2x10 MHz in the 700 MHz band for NOK 262 million. The operator is still building out its mobile network in Norway and noted that the new frequencies are a "bonus" not included in its original plan. As a result of the opportunities with the 700 MHz band, it will be able to reach the target of 95 percent population with fewer base stations, reducing capex in 2019 and 2020 compared to previous estimates.
Telia spent NOK 217.9 million on 2x10 MHz in the 700 MHz band, and Telenor acquired the other 2x10 MHz in the 700 MHz band for NOK 180 million.
The 700 MHz spectrum will be available from 01 November and is expected to be a key component of 5G network roll-outs as well as boosting 4G capacity. The operators will be required to cover 40 percent of the population within five years with speeds of a minimum 5 Mbps with the new frequencies.
Coverage commitments
A new feature of the auction also allows the operators to defer payment of the spectrum licences for two years if they agree to invest NOK 250 million in the two-year period expanding and improving mobile coverage in under-served areas. Ice said it plans to take advantage of this option, as it is still working on the full financing of its roll-out plan.
Communications regulator Nkom said Telia's licence commits the operator to covering several railway lines with the new spectrum, and Telenor agreed to cover international roadways and a designated coastal route. None of the bidders accepted the conditions to cover highways.
