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Italy's 4G spectrum awarded
The results of Italy's 4G spectrum auctions have been announced and companies are awarded spectrum in the 800Mhz, 1,800MHz and 2.6GHz bands. Italy raised EUR 3.9 billion total, more than double the reserve price of EUR 1.7 billion for auctioned spectrum.
Vodafone Italy bid successfully for a total of 20 MHz (2x10 MHz) in the 800 MHz band, 10 MHz (2x5MHz) in the 1800 MHz band, and 30 MHz (2x15MHz) in the 2.6 GHz band for a total consideration of EUR1.26 billion.
The spectrum award will support Vodafone Italy's plans to develop the next generation of wireless data services using LTE technology. In developing LTE services, Vodafone Italy will draw on the experience of Vodafone Germany, which launched LTE towards the end of 2010.
WIND has been awarded two blocks FDD (5+5 MHZ paired each) of spectrum in the 800MHz frequency range and four FDD (5+5 MHz paired) blocks in the 2,600MHz frequency range for a total consideration of €1,120 million. WIND will be required to pay an amount of approximately €682 million within 30 days from the completion of the auction while the remaining amount of approximately €438 million will be payable over five yearly installments.
WIND said that the acquired 800 MHz and 2,600 MHz spectrum blocks will enable the Company to successfully deploy and launch LTE/4G telecommunication services in the coming years.
Telecom Italia also acquired 2x10 MHz 800MHz blocks for a total €992.2 million and one 10 MHz 1800MHz lot for €159.0 million, plus three lots of FDD spectrum in the 2.6GHz band for a total €109.1 million.
3 Italia took the two TDD blocks in the 2.6GHz band for €74.0 million and two lots of FDD spectrum in the 2.6GHz band for €72.4 million, as well as a block in the 1800MHz band, for €158.9 million. It received no spectrum in the 800MHz band.
The 800 MHz 'digital dividend' spectrum will become available in January 2013 after the local television stations have freed it up. The 1.8 GHz band will become available by the end of 2011 and the 2.6 GHz spectrum band will become available by the end of 2012.