FRANKFURT (Reuters) – Germany’s auction of spectrum for 5G mobile services will be resumed on Tuesday after bidding slowed to a crawl last week for the Easter holidays, with the amount pledged by the four companies to take part in this time around of the 5.4 billion euros ($6.1 billion).
FILE PHOTO: A journalist uses his mobile phone to take a picture of the 5G-logo prior to the auction of spectrum for 5G services, the federal network agency headquarters in Mainz, Germany, March 19, 2019. REUTERS/Kai Pfaffenbach/File Photo
More than a month in the auction is shaping up to be one of the longest on record with 218 laps completed – just shy of the 224 rounds in a similar auction in 2010.
But it is far from the most expensive – a 3G auction in 2000 raised from 50 billion euro. Things were that the wind near the current level, the proceeds of the auction would be largely in line with the amounts forecast by independent analysts.
The auction is being held in a former barracks in the western city of Mainz, resumes at 1300 CET (1100 GMT) and will end when no new bids are entered.
Industry bosses are concerned that the four-way battle would inflate costs and undermine their ability to invest the billions needed to build the 5G-networks – as happened in a pricey spectrum auction in Italy last year.
(IMAGE: Germany 5G Auction – Raised a Total of – tmsnrt.rs/2HWVDEu)
Germany’s three existing operators — Deutsche Telekom, Vodafone and Telefonica Deutschland and new member 1&1 and Drillisch compete for the 41 blocks of spectrum in the 2 Ghz and 3.6 GHz band.
These frequencies are of a relatively short distance and the high data-carrying capacity, which meets to use them in the running of the ‘connected’ factories – a German industrial policy priority.
Offer is, however, slowed to a crawl, with much of the last week with races in which only one block in the 3.6 GHz band has changed hands in small steps of 2 million euros, as the figure below indicates.
(IMAGE: Germany 5G Auction – Incremental Bids – tmsnrt.rs/2VnFafE)
Market leader Deutsche Telekom leads in 13 of the blocks on offer, with Vodafone ahead in 12 and Telefonica Deutschland on 9, according to the results published here by the Federal Network Agency (Bnetza).
Drillisch, a ‘virtual’ mobile player is controlled by the United Internet, leads in 7 blocks, making the billionaire CEO Ralph Dommermuth closer to his dream of a Germany’s fourth operator.
(IMAGE: Ralph Dommermuth Set His sights On 5G – tmsnrt.rs/2AYOsWX)
Reporting by Douglas Busvine; Editing by Kirsten Donovan