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German spectrum auction raises over €5bn

After 16 days and 181 rounds, the spectrum auction for mobile broadband has concluded. All three companies, Telefónica Deutschland, Telekom Deutschland and Vodafone, were successful in bidding for spectrum in line with their business models:

Undertaking Amount of spectrum Award price
Telefónica Deutschland
GmbH & Co. OHG
700 MHz:
900 MHz:
1800 MHz:
2 x 10 MHz
2 x 10 MHz
2 x 10 MHz
€ 1,198,238,000
Telekom Deutschland GmbH 700 MHz:
900 MHz:
1800 MHz:
1500 MHz:
2 x 10 MHz
2 x 15 MHz
2 x 15 MHz
20 MHz
€ 1,792,156,000
Vodafone GmbH 700 MHz:
900 MHz:
1800 MHz:
1500 MHz:
2 x 10 MHz
2 x 10 MHz
2 x 25 MHz
20 MHz
€ 2,090,842,000
Total 270 MHz € 5,081,236,000

 

Germany was the first country in Europe to make spectrum in the 700 Megahertz frequency band available for mobile broadband, with Jochen Homann, president of the Bundesnetzagentur (Federal Network Agency suggesting the auction would provide a strong impetus for a rapid roll-out of the broadband networks, especially in rural areas. France’s telecoms regulator ARCEP has just revealed its timetable for its allocation.

The spectrum at 900 MHz and 1800 MHz provided the basis for establishing the current mobile communications network, and the intention is that it should also be used in the future for broadband Internet access.

Frequencies in the 700 MHz band have so far been used for terrestrial television. The switch to DVB-T2 means that they will be freed up and can be used for mobile broadband. Network operators will be able to roll out high speed Internet using relatively few base stations to those areas that are currently under-served.

The Bundesnetzagentur’s goal is to use these frequencies to achieve almost complete nationwide provision of the population with broadband Internet access – as is already the case with mobile voice telephony. For this reason, the frequency usage rights include a coverage obligation of 98 per cent of the population.

 

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