The Czech telecoms regulator expects to launch its controversial 4G spectrum auction by mid-August.
The Czech Telecommunication Office (CTO) announced today that it intends to start the bidder selection process once it has incorporated feedback from the…
The Czech telecoms regulator expects to launch its controversial 4G spectrum auction by mid-August.
The Czech Telecommunication Office (CTO) announced today that it intends to start the bidder selection process once it has incorporated feedback from the competition authority into tender documentation and translated it into English.
A Reuters report cited a CTO spokesperson as saying the regulator has held talks with several potential bidders other than the nation’s three existing mobile operators, Telefonica, T-Mobile and Vodafone. The spokesperson was cited as saying CTO met with several potential investors in London and that representatives of mostly institutional investors visited its offices a week ago as part of a tour arranged by Citigroup.
The PPF investment group’s mobile services unit, owned by Czech businessman Petr Kellner, participated in the Czech Republic’s last auction process, called off in March, and is expected to take part again. The CTO cancelled this auction as it said bids were so high they would have had negative effects upon the industry and consumers.
The new auction conditions, first outlined in April, have attracted strong criticism from the existing operators, particularly for the incentives they offer to potential new market entrants. These include reserving spectrum for them in the 800 MHz band. The companies have argued that the new entrant would have an unfair advantage.
Spokespeople for the existing mobile operators said their companies will wait until the final auction conditions are announced before deciding how to proceed.
A Telefonica Czech Republic spokesperson said that, if auction conditions remain as the company understands them to be, it will take the matter to court as well as to the European Commission.
Saying four financially-equivalent competitors took part in the last auction, the spokesperson said the company considers it “unjustified” to reserve lucrative 800 MHz spectrum for a new player. The company also believes the CTO discriminates against existing operators by forcing them to accept new operating conditions for their networks prior to taking part in the auction.
“Despite some welcome modifications to the draft auction conditions that have been made by the regulator, the conditions are still, in our opinion, insufficient and fail to extinguish doubts about the true transparency of the auction. The move does not contribute to a stable investment environment.”
A T-Mobile spokesperson said the company still believes that reserving lucrative frequencies for a new entrant amounts to preferential treatment “with the characteristics of state aid”.
A Vodafone spokesperson said the company will plan its next steps when the final auction conditions are known.
