The CEO of T-Mobile Austria, Andreas Bierwirth, has called for a new spectrum auction in the country, arguing that fundamental flaws in the recent process led to excessive prices. Speaking at a press conference in Vienna today, Bierwirth said T-Mobile…
The CEO of T-Mobile Austria, Andreas Bierwirth, has called for a new spectrum auction in the country, arguing that fundamental flaws in the recent process led to excessive prices.
Speaking at a press conference in Vienna today, Bierwirth said T-Mobile intends to appeal the results of the October multiband 4G tender – which raised more than €2bn for the state – so that a new auction can be held.
T-Mobile, part of the Deutsche Telekom group and Austria’s second-largest mobile operator, contends the auction’s lack of transparency led to inflated prices and that the process had major procedural defects. The operator paid €654m (US$883.7m) for nine frequency blocks.
Regulator TKK held a recent hearing allowing operators to voice their concerns about the auction. However, only a court appeal could change the results.
T-Mobile intends to apply to the administrative court to suspend the requirement to pay the €654m within four weeks, Bierwirth said.
At today’s conference, the CEO also called on the federal government to adhere to an earlier pledge that some of the auction proceeds will be invested in broadband development.
A spokesperson for incumbent Telekom Austria, which paid about €1.03bn (US$1.4bn) for 14 spectrum blocks, said the company has not yet decided whether or not to appeal.
“We are still evaluating this and will not decide before December,” he said.
The nation’s third-largest mobile operator, Hutchison Whampoa’s H3G, is also considering an appeal, a company spokesperson said, adding that it is keeping its options open.
Commenting on the matter, H3G CEO Jan Trinow said the company, which paid €330m (US$445.9m) for five spectrum blocks, believes the form and content of the auction was illegal. He argued that the “completely irrational” spectrum costs represent “massive” losses for the Austrian mobile sector and its customers.
