The Czech Republic’s three mobile operators, Telefonica CR, T-Mobile CR and Vodafone CR, have all won spectrum in the nation’s controversial 4G spectrum auction, while potential new entrants opted out. The regulator, CTU, announced that the auction…
The Czech Republic’s three mobile operators, Telefonica CR, T-Mobile CR and Vodafone CR, have all won spectrum in the nation’s controversial 4G spectrum auction, while potential new entrants opted out.
The regulator, CTU, announced that the auction will raise a total Kc8.53bn (US$422.31m).
Vodafone CR spent the most in the auction, bidding CZK3.11bn (US$153.97m) in total. Telefonica CR spent CZK2.8bn (US$138.63m) and T-Mobile CR CZK2.61bn (US$129.2m).
For spectrum in the highly-prized 800MHz band, Vodafone spent CZK2.66bn (US$131.68m), Telefonica spent CZK2.39bn (US$118.31m) and T-Mobile spent CZK2.23bn (US$110.39m). Each operator also acquired spectrum in the 2,600 MHz and 1,800 MHz bands.
The next auction phase will see specific frequency blocks allocated within frequency bands.
New candidates did not bid
CTU said that while it had created “ideal” conditions for a new player to enter the mobile market via the auction, the two candidates – Revolution Mobile and Sazka Communications – had withdrawn from the process.
Earlier in the month, a telecoms consultant, speaking to TelecomFinance, had already questioned whether the potential newcomers would participate in the auction.
Now Czech billionaire Petr Kellner’s PPF investment group has gained entry to the market via its investment in Telefonica CR, he suggested its recently-divested offshoot Revolution Mobile might no longer have a reason to participate.
Meanwhile, the consultant speculated that Sazka’s motivation for showing interest in the auction may have been to make things more expensive for PPF given it competes with its parent company KKCG group in other markets.
Relief to incumbents
The auction results will undoubtedly come as a relief to the incumbents, who had taken legal action over conditions they contended were unreasonably favourable to newcomers.
CTU board chairman Jaromir Novak said he expects operators will be able to provide customers with high-speed mobile internet services within a year.
CTU cancelled a 4G auction in March, saying bids totalling CZK20bn (US$1.03bn) were so high they would have had a negative impact on the industry and consumers.
