Orange (EPA:ORA), Altice-owned SFR, Bouygues Telecom and Iliad’s Free have submitted applications to participate in France’s upcoming 700 MHz spectrum auction, telecoms regulator Arcep has announced.
Orange (EPA:ORA), Altice-owned SFR, Bouygues Telecom and Iliad’s Free have submitted applications to participate in France’s upcoming 700 MHz spectrum auction, telecoms regulator Arcep has announced.
Arcep, which published auction guidelines on its website, indicated that it would review the applications in order to ensure that each candidate met the bidding criteria before publicising the list of qualified bidders.
Bidding will then kick off in November, Arcep stated, with licences awarded by the end of 2015.
The auction will include six paired blocks of 2 x 5 MHz spectrum available at a reserve price of €416m (US$459m) apiece, with operators able to win a maximum of three blocks each.
The French government hopes the auction will raise at least €2.5bn (US$2.76bn). One of the reasons cited by economy minister Emmanuel Macron for his opposition to Altice’s €10bn offer for Bouygues Telecom was the possible impact on the upcoming spectrum auction.
Germany auctioned off 60 MHz of 700 MHz band spectrum earlier this year, raising €1bn (US$1.13bn). Industry watchers told TelecomFinance the low prices paid could be partly attributed to the market’s reduction from four to three players, meaning there was less competition for frequencies. One of the drivers cited for sector mergers is in fact lowering spectrum prices.
Orange CEO Stephane Richard has said he expects a renewed effort at consolidation following the auction.