Frequency auction for mobile broadband networks yield 2,6 million Euro in The Netherlands

The Ministry for Economic Affairs has collected 2,6 million Euro with an auction for frequencies in the 2,6 GHz band. Besides the three mobile networks operators KPN, Vodafone en T-Mobile, also newcomers Tele2 and the jointly operating cable companies UPC and Ziggo have acquired bands in the spectrum.

The specific goal of the auction was to provide newcomers with a good opportunity to enter the mobile broadband market. The three incumbents could only acquire a percentage of the available bands.

Especially the paired frequencies that can be used for 4G networks, were popular. Almost 70 MHz of unpaired spectrum remained unsold. This spectrum is suited for WiMax services, not for 4G. The ministry now thinks about ways to sell these bands too.

4G, also called LTE (Long Term Evolution) networks, should clear the way for entirely new mobile services. With 4G neworks, one should be able to download with speeds over 100 Mbps and upload with at least 50 Mbps. Telecom companies think that they will not so much be used for accessing websites, but rather for new services, such as video-on-demand in connected cars. The only places in the world that have 4G networks so far are Stockholm and Olso.

Some years ago, auctioning the UMTS licenses yielded billions of Euros.

29 April 2010