Germany and France advance in the auction of the 700 MHz band

This week, the French National Assembly gave the green light to the auction of the 700 MHz band next November. Germany, for its part, is in the middle of the competition.

The reorganization of the radio spectrum throughout Europe continues in full swing, waiting for the World Radiocommunication Conference (WRC-2015), next November in Geneva, to determine the future of the band below 700 MHz.

This week, the French National Assembly gave the green light to the auction of the 700 MHz band next November. The regulatory body, ARCEP, has set three objectives: put up for auction the frequencies that are part of the State's assets; improve the digital management of the territory; and maintain an adequate level of competition among operators.

To do this, France will put out to tender 30 frequencies, divided into 6 lots of 5 MHz. Each lot will go up for auction for a minimum of 416 million, for which the State hopes to pocket 2.5 billion euros.

After this auction, no operator will be able to have more than 30 MHz in the low band (700, 800, 900 MHz).

The operators Bouygues Telecom, Numericable-SFR and Orange, which already have 20 Mhz, will not be able to compete in more than two lots.

For its part, in Germany the competition is now open to allocate the 700 MHz band. At stake are new lots in the 700 MHz band (two lots of 30 MHz once DVB-T2 broadcasts have been released), as well as in 900 MHz and 1,800 MHz for a total of 270 MHz.

Vodafone has submitted the highest offer for the six available blocks for an amount of 968 million euros. More than double the starting price, set on June 17, which was 450 million euros.

The spectrum will be assigned in 2×5 MHz lots, with a minimum price set at 75 million per package, in line with the price reached in the previous auction.

On the other hand, the bid for the 900 Mhz band decreased, with Telefónica offering 201.7 million euros for the lot offered. The 1800 MHz band showed the largest increase compared to the initial price of 37.5 million, reaching the highest offer of 249.1 million euros from Vodafone for a single lot.