T-Mobile challenges rules of upcoming spectrum auction

5 Aug 2013

T-Mobile Austria has filed a legal challenge relating to the terms of the multi-band spectrum auction due to be held in September this year, company lawyer Ewald Lichtenberger has confirmed to Reuters. It has been suggested that some of the frequencies being made available from 2016 are currently owned by T-Mobile, which says that it possesses the rights to continue using the spectrum until the end of 2019. Lichtenberger commented: ‘This is an issue that I believe must be clarified before the auction because later it would create big problems’.

According to TeleGeography’s GlobalComms Database, March 2013 saw the Telekom Control Commission (TKK) announce that it would hold its largest auction of radio frequencies to date in September 2013, with a total of 28 spectrum blocks in the 800MHz, 900MHz and 1800MHz bands going under the hammer in a so-called ‘combinatory clock auction’; minimum bids for the entire spectrum allocation are expected to generate around EUR526 million (USD698 million). The overly complicated rules of the auction were poorly received by the country’s mobile operators, and T-Mobile reportedly hired a game theoretician to assist with its preparations during the six-month build-up to the auction.

Austria, T-Mobile Austria (Magenta Telekom)