Review of the Multi-Frequency Irish and Dutch Spectrum Auctions

Ireland / Netherlands Spectrum AuctionsThe Irish multi-frequency spectrum auction concluded on November 15th raising a respectable 854€ million ($1.1 billion) from four bidders on licenses for 280 MHz in the 800, 900, and 1800 MHz bands. Earlier this month, on December 14th, the Dutch multi-frequency auction of about 360 MHz netted the regulator over 3.8€ billion ($4.97 billion).

Both regulators did not report the price paid on a per-band/license basis. But on average, the Irish spectrum is priced at about 0.48 euro-cent per MHz-PoP (0.61₵), while the Dutch auction is priced at 0.63 euro-cent per MHz-PoP (0.83₵).

Ireland Spectrum Auction – November 15, 2012
Duration

Hutchinson 3G Ireland

Meteor Mobile Communications

Telefonica Ireland

Vodafone Ireland

800 MHz: 791 ‐ 821 MHz / 832 ‐ 862 MHz 2013-2015

-

2×10 MHz

2×10 MHz

2×10 MHz

2015-2030

-

2×10 MHz

2×10 MHz

2×10 MHz

900 MHz: 880 ‐ 915 MHz / 925 ‐ 960 MHz 2013-2015

2×5 MHz

2×5 MHz

2×10 MHz

2×10 MHz

2015-2030

2×5 MHz

2×10 MHz

2×10 MHz

2×10 MHz

1800 MHz: 1710 ‐ 1785 MHz / 1805 ‐ 1880 MHz 2013-2015

2×10 MHz

2×10 MHz

-

2×15 MHz

2015-2030

2×20 MHz

2×15 MHz

2×15 MHz

2×25 MHz

Final Upfront Fees (€, million)

51.14

144.78

124.93

160.85

Total Spectrum Usage Fees (€, million)

53.87

99.64

99.64

119.79

Total (€, million)

854.64

Total €/MHz-PoP

0.48

Total $/MHz-PoP

0.61

In the Dutch auction, KPN and Vodafone obtained similar sized licenses in 800, 900, 1800, and 2100 MHz bands, while KPN obtained an additional 30 MHz in 2.6 GHz band. As Vodafone paid a higher price (by 29€ million) for the less spectrum, it only means that the 2.6 GHz unpaired band is valued at a very low price. Moreover, one can also surmise the 1900 unpaired band that T-Mobile obtained also has a low value.

Netherlands Spectrum Auction – December 14, 2012
Duration KPN Tele2 T-Mobile Vodafone
800 MHz: 791 ‐ 821 MHz / 832 ‐ 862 MHz 17 Yrs 2×10 MHz: 811-821 MHz / 852-862 MHz 2×10 MHz: 791-801 MHz / 832-842 MHz

-

2×10 MHz: 801-811 MHz / 842-852 MHz
900 MHz: 880 ‐ 915 MHz / 925 ‐ 960 MHz 17 Yrs 2×10 MHz: 890-900 MHz / 935-945 MHz

-

2×15 MHz: 900-915 MHz / 945-960 MHz 2×10 MHz: 880-890 MHz / 925-935 MHz
1800 MHz: 1710 ‐ 1785 MHz / 1805 ‐ 1880 MHz 17 Yrs 2×20 MHz: 1710-1730 MHz / 1805-1825 MHz

-

2×30 MHz: 1750-1780 MHz / 1845-1875 MHz 2×20 MHz: 1730-1750 MHz / 1825-1845 MHz
1900 MHz (unpaired) 4 Yrs

-

-

1×14.6 MHz: 1900-1904.9 & 2010-2019.7 MHz

-

2100 MHz 4 Yrs 2×5 MHz: 1959.7-1964.7 MHz / 2149.7-2154.7 MHz

-

2×5 MHz: 1964.7-1969.7 MHz / 2154.7-2159.7 MHz
2600 MHz (unpaired) 17 Yrs 1×30 MHz: 2590-2620 MHz

-

1×25 MHz: 2565-2590 MHz

-

Total Fees (€)

1,351,852,000

160,813,000

910,681,000

1,380,800,000

Total Bandwidth Acquired (MHz)

120

20

129.6

90

€/MHz-PoP

0.67

0.48

0.42

0.92

Total (€, million)

3,804

Total €/MHz-PoP

0.63

Total $/MHz-PoP

0.83

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About Frank Rayal
Telecom industry management consultant.

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