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Portuguese auction fails to entice new entrants

Connectivity BusinessbyConnectivity Business
November 30, 2011
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The Portuguese spectrum auction closed yesterday without any new entrants to the market winning spectrum, despite the hopes of the local authorities.
The only winning bidders in the auction were the country’s existing three major mobile operators:…

The Portuguese spectrum auction closed yesterday without any new entrants to the market winning spectrum, despite the hopes of the local authorities.

The only winning bidders in the auction were the country’s existing three major mobile operators: Optimus, TMN and Vodafone Portugal. They bid a total of €372m for spectrum in the 800MHz, 900MHz, 1.8GHz and 2.6GHz bands.

When the auction was originally announced, the Portuguese telecoms regulator ANACOM had said that the auction rules contained several measures promoting “the entrance of new operations” into the Portuguese market.

Yet speaking to TelecomFinance today, an ANACOM spokeswoman said: “Anacom made the rules to increase competition, but there are no new entrants. We can’t oblige operators to bid.”

Vodafone’s Portuguese subsidiary was the biggest spender in the spectrum auction, bidding €146m for spectrum in the 800MHz, 900MHz, 1.8GHz and 2.6GHz bands.

Vodafone Portugal said in a statement that the spectrum in the 800MHz, 1.8GHz and 2.6GHz would enable the company to provide services based on LTE. Spectrum in the 900MHz band would improve coverage and quality of service, particularly within buildings, using 3G/HSPA technology, the company added.

The local mobile subsidiaries of Sonaecom and Portugal Telecom also won spectrum.

Optimus, which is 100% owned by Sonaecom, and TMN, Portugal Telecom’s mobile subsidiary, each bid €113m for spectrum in the 800MHz, 1.8GHz and 2.6GHz.

Both Optimus and Portugal Telecom stated that the acquired spectrum would also assist them in the development of 4G services.

According to the Vodafone Portugal statement, the bidding process is now over and the phases of “consignment” and the assignment of frequency usage rights to the operators will now follow.

There was no winner for several blocks of spectrum: one block of 2×1.25MHz in the 450MHz band; one block of 2x5MHz in the 900MHz band; three blocks of 2x5MHz in the 1.8GHz band; two blocks of 5MHz in the 2.1GHz band; two blocks of 2x5MHz and one block of 25MHz in the 2.6GHz band.

 

Tags: NOSPortugal TelecomSonaecomTMNVodafone
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