The French government has raised more than expected in its 4G auction. Maximising proceeds from the tender was one of the factors in France’s decision not to support Altice‘s €10bn offer earlier this year for Bouygues Telecom, with a view to combining it with Numericable-SFR. It remains to be seen whether Orange CEO Stephane Richard was correct in predicting that attempts at four-to-three consolidation would re-emerge in the new year when the auction has completed.
All of France’s mobile operators have won spectrum in the 700 MHz auction, which regulator Arcep said has so far raised €2.8bn (US$3bn).
Free (EPA:ILD) and Orange (EPA:ORA) each won two 5 MHz blocks, while Bouygues Telecom and Numericable-SFR (EPA:NUM) have agreed to buy one 5 MHz block apiece.
On 19 November, the winners must tell Arcep which specific blocks they would like, and how much they are prepared to pay for their first choice, meaning the €2.8bn total could rise.
Orange said that it had agreed to pay at least €932m (US$994m) for its two 5 MHz blocks, meaning it will now holds 90 MHz of spectrum, 30 MHz of which will be in what it described as the low-range “golden” frequencies.
Iliad, for its part, said it will hold 55 MHz of 3G/4G frequencies, adding that its 4G network now covers 60% of the population.
Bouygues said it had paid €466m (US$475m) for its block, which would boost the 4G capacity it already has in the 800 MHz, 1800 MHz and 2600 MHz bands.
Finally, SFR said in its own statement that it had acquired one new block, adding to its existing low frequencies: 10 MHz in the 800 MHz and 10 MHz in the 900 MHz bands. It also holds 55 MHz of high frequency spectrum.
One of the reasons cited for Economy Minister Emmanuel’s lack of support for Altice’s €10bn (US$10.7bn) bid for Bouygues Telecom was the potential impact on the 4G auction, which the government had hoped would raise €2.5bn (US$2.7bn). Germany, home to one of Europe’s first four-to-three deals, raised just €1bn (US$1.1bn) in its own 700 MHz auction earlier this year.