UK mobile operator EE will not be trading spectrum even after the 4G auction left it with more of the country’s airwaves than any of its rivals, according to CEO Olaf Swantee.
Analysts believe February’s notoriously complex 4G bidding process could…
UK mobile operator EE will not be trading spectrum even after the 4G auction left it with more of the country’s airwaves than any of its rivals, according to CEO Olaf Swantee.
Analysts believe February’s notoriously complex 4G bidding process could have left some operators with unfavourable spectrum holdings. Enders Analysis recently said EE rivals O2 and 3 could suffer in the long run from their lack of high end 2.6GHz frequencies.
Local telecoms regulator Ofcom has allowed operators to trade their airwaves since 2011. But Swantee said EE will not be trading spectrum as he was “very pleased” with the auction’s outcome, which saw it buy 2x5MHz in the 800MHz band and 2x35MHz of 2.6GHz frequencies for roughly £589m.
“You need spectrum if you want to be able to have a great internet experience for your customers,” he said.
“We will do that. We will continue to build out our network. And we will be able, with the spectrum that we have, to always have an advantage in speed and capacity. We think that gives us a really strategic advantage over the competition.”
After becoming the first – and currently only – British mobile operator to launch 4G in October, Swantee pointed to how it has recently doubled speeds on its new network in certain cities, which he said two operators would not be able to match with their resources.
EE has a 36% share of the UK’s airwaves, compared with Vodafone’s 28%, O2’s 15%, 3’s 12% and BT’s 9% – although performance also depends on the type of frequencies and the towers an operator builds.
No update on strategic review
Swantee told journalists this morning that he had received no update on a strategic review being conducted by its 50/50 owners, Deutsche Telekom and France Telecom, on whether to sell or list a stake by the end of the year.
“They are going through a strategic review, and they have demonstrated some intent to look at different possibilities including a potential IPO,” he said.
“I strongly believe that they wouldn’t do that unless EE is on the right track, that we have a good plan, and that we’re executing well. I continue to focus on that part of the equation.”
France Telecom is reported to have hired Morgan Stanley and BofA Merrill Lynch for the review. Deutsche Telekom is reportedly set to pick JP Morgan because of the role it played in forming EE back in 2009.
EE today posted turnover for the three months to 31 March 2013 down 3.9% to £1.605bn, compared with £1.67bn for Q1 last year. The company does not comment on profitability on a quarterly level.
It added that its 4G customer base had reached approximately 318,000 after five months of trading, meaning it was “firmly on track” to meet a target of one million by the end of 2013.
