Packages under the hammer

Frequency auction generates almost 25 million euros

The Telekom-Control Commission generated proceeds of almost 25 million euros at the third auction of 5G frequencies on Tuesday. Seven frequency blocks in the 26 gigahertz range accounted for 16.2 million euros of this. The mobile network providers paid around 8.5 million euros for the seven frequency packages awarded in the 3600 megahertz range.

A1 Telekom, T-Mobile and Hutchison (Drei) won the 26 GHz frequencies. For the 3600 MHz frequencies, it was A1 Telekom and T-Mobile (Magenta).

As Telekom Control announced in a press release, the 26 GHz band is characterized by very high bandwidths but a very limited range for mobile communications use. These frequencies are therefore particularly suitable for covering areas with a high user density and high capacity requirements (hot spots).

Telekom Control conceded that these frequencies may be switched off between midnight and 5 a.m., provided there is no reduction in performance compared to daytime operation.

The frequencies in the 3600 MHz range, on the other hand, are residual frequencies that were not allocated in the 2019 auction. The frequencies can be used until December 31, 2039.

"Equipped for the future"
"With the spectrum we have now acquired, we are well equipped for the future. They form the basis for new services and lay the foundation for future developments of new 5G applications," said Alejandro Plater, CEO of the A1 Group.

Drei CEO Rudolf Schrefl also expressed his satisfaction with the auction result in a press release: "The government and regulatory authority have demonstrated responsibility and foresight with the fair conduct and design of the auction." The open and constructive consultation process with the responsible regulatory authority RTR in the run-up to the auction, in which the operators' feedback was also heard, was very positive. The manager believes that his company is "very well equipped" for the future thanks to the newly acquired blocks.

Magenta Telekom saw "important resources for the 5G high-speed networks secured through the acquisition of additional mobile frequencies". A good ten million euros had been invested in the acquisition of the frequencies. Customers would benefit directly from this commitment.