Auction 2.6 GHz Spectrum in Second Quarter 2009 through the Internet
The Dutch Government will auction the 2.6 GHz spectrum for
mobile services in the second quarter of 2009. With the frequencies
(new) market parties will be able to offer additional services,
such as mobile internet (WIMAX). The frequencies may also be used
for LTE (Long Term Evolution), a fast variant of UMTS allowing
higher data speeds. For the first time in the Netherlands the
frequencies will be auctioned through the Internet. With the issue
of these extra licenses opportunities for new market parties will
be created and competition in the field of mobile communication is
expected to increase.
Procedure
In November 2008 the auction rules will be published on the
Internet, so that companies have time to prepare themselves. In
addition, early in 2009 the Agentschap Telecom (Radiocommunications
Agency Netherlands) will hold an informative meeting about the
auction model. This meeting will be followed by a test auction for
market parties. The auction is planned to be held in the second
quarter of 2009.
Terms
The maximum quantity of spectrum to be acquired is limited to 40
MHz per participant. According to the Ministry, this will ensure
that sets of frequencies can be divided over at least five
different parties and that frequencies will be offered to at least
two newcomers on the market. In addition, the parties are obliged
to start using the frequencies and actually to offer services
within a timeframe of two years. This way the Ministry wishes to
prevent large existing telecom players from acquiring the
frequencies with a defensive intention, in order to obstruct
competition.
Considering the economic circumstances the number of interested
parties may be limited next year, and the prices may not be too
high as a result. Time to consider making a bid?