Operators Vodafone, KPN, T-Mobile and Tele2 have spent a total of €3.8bn in the Netherlands’ spectrum auction, which included 4G frequencies. Vodafone acquired nine licences for €1.38bn, KPN and T-Mobile bought 15 licences each, paying €1.35bn…
Operators Vodafone, KPN, T-Mobile and Tele2 have spent a total of €3.8bn in the Netherlands’ spectrum auction, which included 4G frequencies.
Vodafone acquired nine licences for €1.38bn, KPN and T-Mobile bought 15 licences each, paying €1.35bn and €910m respectively. Tele2 – a newcomer to the market – picked up two licences for €160m.
The majority of the licences are valid for 17 years and are in a variety of bands: 800MHz, 900MHz, 1.8GHz, 1.9GHz, 2.1GHz and 2.6GHz.
The bidding in the tender rose higher than many industry watchers predicted. KPN had to drop a dividend payment to shareholders because the auction cost was higher than it expected. Its share price dropped in the wake of the tender, from €4.63 on Friday to €3.96 today.
In a statement the operator said: “KPN is convinced that the acquired licenses will generate a good return on investment.”
UPC and Ziggo issued a statement saying they refrained from acquiring licences for their joint-venture due to the cost.
“UPC and Ziggo considered the price too high given the additional revenues they expected to get from owning a license,” the companies said.
Meanwhile Tele2’s successful participation in the auction sees a new entrant to the wireless market. The Sweden-based telco has a fibre network in the Netherlands and has operated an MVNO for 10 years.
In a statement the regulator that sold the spectrum, Agentschap Telecom, said the presence of a fourth operator with a network would create additional competition in the market.
