2.6GHz frequency auction completed; revenues total EUR39.5 million

22 Sep 2010

Austrian regulator Telekom Control Commission (TKK) has announced the completion of the country’s spectrum auction, which took place between 13 September and 20 September 2010. A total of 14 paired and nine unpaired frequency blocks in the 2.6GHz band were on offer, with bids starting at EUR7.4 million (USD9.7 million). The TKK reportedly raised a total of EUR39.53 million from the auction, which will go to the Austrian federal government. All of Austria’s mobile network operators participated in the auction, with the available spectrum assigned as follows: A1 Telekom Austria acquired 2×20MHz in the paired band and 25MHz in the unpaired band, while Hutchison 3G Austria received 2×20MHz in the paired band and 25MHz in the unpaired band. Orange Austria acquired 2×10MHz in the paired band, while T-Mobile Austria was assigned 2×20MHz in the paired band.

The TKK anticipates that the frequencies will be primarily used for high-speed mobile broadband services in areas of high population density. Georg Serentschy, managing director of the Regulatory Authority for Telecoms and Broadcasting (RTR) Telecoms Division, explained: ‘LTE technology enables operators to offer wireless broadband access with top speeds of up to 100Mbps. These additional frequencies are important because the use of mobile broadband has skyrocketed in recent years, which in turn has led to bottlenecks in urban areas. Austria’s operators will now be able to offer their subscribers high-capacity mobile broadband services’. Hannes Ametsreiter, CEO of Telekom Austria Group commented: ‘We have been intensively testing LTE for a few years, and based on our extensive expertise and year-long experience we will be able to start the commercial launch of this cutting-edge technology immediately after the grant of the licence. Our base stations meet all technical prerequisites for the start, thus we will be the first mobile provider to start LTE in Austria’.