Germany raises 6.55 billion-in-epic-5G-spectrum auction

FRANKFURT(Reuters) – Germany’s increased to 6.55 billion euros ($7.4 billion) from its 5G mobile spectrum auction, the Federal Network Regulator (federal network agency said on Wednesday after a nearly three-month-long battle, which will see a fourth operator enter the market.

FILE PHOTO: An employee of germany’s Federal Network Agency (Bnetza), uses his mobile phone in front of a screen that has been set for the auction of spectrum for 5G services, the federal network agency’s headquarters in Mainz, Germany, on March 18, 2019. REUTERS/Kai Pfaffenbach

The sum is pledged to an all-time high of 497 rounds of bidding for the 41 blocks on offer, I was more than analysts had expected, as the operators have complained that the price they had to pay, it would sap their ability to invest in next-generation networks.

“The auction, and leaves a bitter aftertaste,” said Deutsche Telekom Germany’s chief of Dirk Woessner. The market leader’s bid to 2.17 billion euros to 130 the Addition of the 420 MHz spectrum in the 2 Ghz and 3.6 GHz bands.

“The result has been a dampener on our network buildout. The Spectrum, once again, it is a lot more expensive in Germany than anywhere else,” said Woessner.

Deutsche Telekom Austria unit of recently, bags of 5G, the spectrum is much more economical.

It’s the end of the auction, and the burn start in order to upgrade the networks to make it run, connected factories, and smart cities, in Europe’s largest economy, which has lagged behind countries such as the United States of america, Japan, and south Korea, which has already begun, with the roll-out of 5G services.

Vodafone Germany’s CEO Hannes Ametsreiter discusses the results of the auction as “closed for refurbishment”.

“I’m very happy with how long the process took and the price that we, as the bidders have to pay,” he told the Westdeutsche Allgemeine Zeitung newspaper. “In germany, it is the loss of valuable time in the digital stakes. In Europe, we are not the first to launch 5G services.”

Vodafone also won a 130 MHz, and the payment of 1.88 billion euros, while Telefonica Deutschland is protected with 90 MHz to 1.42 billion euros.

Collection is less aggressive because it was a spare of the spectrum, in addition to the 2 ghz band is well suited for the reinforcement of the existing national 4G coverage. Of the 3.6 GHz band has a higher capacity but a shorter range, which makes it more suitable for use in industrial and urban 5 G is used.

“We have received a valuable package of frequencies that are an ideal complement to our existing spectrum,” said the CEO, Markus Haas. Telefonica Deutschland, the financial support.


New member 1&1 and Drillisch, a “virtual” mobile operator managed by United Internet, a fee of 1.07 billion euros for the 70 MHz and, thus, the billionaire CEO Ralph Dommermuth closer to his dream of running the Germany’s fourth telecom operator.

Drillisch, which will also have the right to rent the Collection capacity by the year 2025, it said that it had “laid the foundation for a successful and permanent” position as Germany’s fourth telecom operator.

In the end, the auction raised more than 5.1 billion euros in 2015, a 4G-spectrum auction, but it will be much less than the 50 billion euros divided by the entries in a cancelled auction in the year 2000.

In the 5G race, started the firm on March 19, but it soon slowed to a halt as the participants gamed with a design that allowed for incremental bids, and only 2 million, respectively.

That momentum was broken last week after the federal network agency, raised the minimum permissible bid, and more than six-fold, a move that has helped bring things to a close.

Reporting by Douglas Busvine; Editing by Tom Sims and Kirsten Donovan

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