Focus On 800 Mhz Band as German Spectrum Auction Continues

in News, Auction, Germany, spectrum, LTE

April 27, 2010 - Germany's mobile spectrum auction gained EUR1.86 billion at the end of its 12th day, with bidders focusing on 800 megahertz band spectrum. According to estimates from advisory firm KPMG, the auction will generate proceeds of EUR6 billion to EUR8 billion and could take weeks.

Germany's federal network regulator has admitted only Vodafone, T-Mobile, E-Plus, and O2 to the bidding. The four operators are bidding in frequency auctions in the ranges 800 MHz, 1.8 GHz, 2 GHz and 2.6 GHz. The regulator is offering a total of 41 frequency blocks across the four frequency bands, which are expected to be used for LTE network deployments.

The 800 MHz band, in which six 10 MHz blocks are for sale, is considered the most valuable spectrum as it is the most cost-efficient way to build next-generation mobile networks. In round 92, which concluded today, Deutsche Telekom AG (DT) offered EUR286.7 million each for two 10 MHz blocks in the 800 MHz band and Vodafone PLC (VOD) offered EUR252.7 million for another 10 MHz block in the band. Telefonica O2 offered between EUR254.8 million and EUR272 million each for two other 10 MHz blocks in the 800 MHz band. Royal KPN NV's (KPN.AE) E-Plus offered EUR262.5 million for another spectrum block in the 800 megahertz band.

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