Your browser is not supported. Please update it.

29 August 2013

Czech and Polish LTE auctions on the horizon

The CTU, the telecoms regulator for the Czech Republic, is to make a second attempt to auction LTE spectrum, having halted the first sale, in March, because it said prices were going too high.

It now plans a new auction in November, and insists it will issue four licences, allowing a new entrant to go up against the three incumbents ‘ Telefonica O2, T-Mobile and Vodafone – despite their loud protests. Under the current plans, a newcomer would be guaranteed slots in the 800MHz band, and might get them at a discount compared to the big three. CTU spokesman Frantisek Malina said in a statement: ‘We’re putting aside dedicated bandwidth to attract a new mobile company to offer its services here.’

The CTU will allow free bidding in the 1.8GHz and 2.6GHz bands. Interested parties have until the end of September to register, while the spectrum is likely to be awarded in the first quarter of next year. In recent months two local telcos, PPF Mobile Services and Dial Telecom, have expressed interest in bidding for spectrum.

In March, the auction was cancelled when bids rose to almost three times the reserve price of CZK7.4bn ($373.6m), reaching over CZK20bn, prompting fears that the hefty outlay would limit operators’ ability to roll out networks, or that they would pass on the charges to their customers in high LTE fees.

Meanwhile, in neighboring Poland, regulator the UKE has initiated a public consultation about the sale of spectrum in the 800MHz and 2.6GHz bands. It plans to offer five blocks of 2’5MHz in the former band and seven blocks of 2’10MHz in the latter. Proposed rules for the national 15-year licences would limit bidders to a maximum of two blocks in 800MHz and three in 2.6GHz. There would also be a spectrum cap on combined sub-1GHz holdings, so that operators could only own up to 40MHz across the 800MHz and 900MHz bands. UKE has proposed a reserve price of PLN250m ($78.47m) per block in the lower frequency band and PLN50m per block in 2.6GHz.

The 800MHz block on offer was reduced from 2’30MHz (791MHz-821MHz, 832MHz-862MHz) to 2’25MHz following a settlement between the Polish government and CDMA operator Sferia, which saw that carrier awarded 2’5MHz in return for withdrawing its claims against the state at the International Court of Arbitration. Sferia is not permitted to bid for further 800MHz spectrum in the upcoming auction.

Also in Poland, Huawei and the government have cooperated to deploy what they say is the first eLTE network in the 3.6GHz-3.8GHz band. The network will provide access to residents of rural areas in the Ozaworice region. Huawei provided a customized eLTE solution because of limited spectrum available in the area. It has implemented distributed base stations that can be installed on walls or lamp posts, linked to its eCSN600 core network equipment.