Ofcom announces 700 MHz and 3.6-3.8 GHz auction with no coverage obligations

UK telecoms regulator Ofcom has announced that the next tranche of 5G frequencies will be made available to operators via an auction next year.

The spectrum consists of 80 MHz of 700 MHz band and 120 MHz in 3.6-3.8 GHz band. The 700 MHz is a lot more valuable to operators because it covers much greater distances than the higher frequency spectrum. Thus Ofcom is proposing a reserve price of up to £240 million per 2×5 MHz lot of that, compared to a reserve price of up to £25 million for each 5 MHz lot of 3.6-3.8 GHz spectrum. Four lots of 5 MHz of 700 MHz spectrum will also be auctioned for downlink-only.

The big news within the announcement is that Ofcom isn’t attaching any coverage obligations to any of the spectrum, apparently as a result of the deal struck with operators last week. Were it not for that the 700 MHz spectrum was expected to only be offered on the condition that whoever owned any of it committed to the kinds of arbitrary geographical coverage obligations that have become do politicised in recent years.

“We’re pressing ahead with plans to release vital airwaves to improve mobile services for customers,” said Philip Marnick, Spectrum Group Director at Ofcom. “Together with mobile companies’ commitments to improve coverage, this will help more areas get better services, and help the UK maintain its place as a leader in 5G.”

The mechanics of the auction will be similar to the 2018 one, which brought in an acceptable amount of cash for the government so it presumably felt no need to change it. The 37% cap on spectrum ownership still applies, which means EE can only win a maximum of 120 MHz, Three 185, and Vodafone 190. O2 has so little spectrum that it could buy the lot if it felt like it (see below). The auction will take place sometime next Spring.

India promises spectrum reform as telcos bemoan status quo

The Indian Government has promised it will reform the pricing structures of spectrum auctions over the coming months as telcos cast their eyes to the 5G horizon.

Speaking at the India Mobile Congress, Telecom Minister Ravi Shanker Prasad suggested a new wave of spectrum auctions would take place over the next 12 months, and much to the happiness of the telcos, the team will work to make it cheaper.

While numerous nations around the world have been pushing forward with their own spectrum auctions to ready economies for the 5G euphoria, India is one where progress has been incredibly sluggish. There have been attempts to get the ball rolling, however industry has pushed back due to the high base prices which were set by the Government.

In 2016, 2354.55 MHz of spectrum ranging across the 7 bands was auctioned off, with many of the telcos applying to participate. Unfortunately, the end result was only 40% of the licences being allocated, with price seemingly being the reason.

In 2017, another consultation process was launched by the Telecom Regulatory Authority of India (TRAI), with the aim being to push out 5G spectrum and the unallocated assets from the 2016 edition. No further action was taken following the end of the consultation, with industry requesting the auction be pushed back.

The comments from Prasad might well be a watershed moment in the stalemate. It seems the Government was the first to twitch on the pricing conundrum.

Speaking at the same event, Vodafone Idea Chairman Kumar Mangalam Birla said, “while we stand committed to support the growth of the industry, we seek enabling regulatory environment to ensure that necessary investments are made.”

Reliance Jio board member Mahendra Nahata also suggested pricing for 5G spectrum should “critically looked at”. The general feeling appears to be the Government is not looking at the big picture, targeting revenues derived from spectrum sales in the short-term, instead of looking long-term at national economic growth which can be achieved through the continued progress being made in the connectivity world.

This is of course an equation which is difficult to balance. The telcos will always want to make sure they are paying as little as possible for spectrum licences and will promise the difference will be invested in network deployment. This is a reasonable assumption, though there is no way to prove charging less for spectrum licences would result in increased network deployment. The telco might well have spent the same but is trying to reduce expenditure.

Industry is of course perfectly entitled to push back against what it would perceive as pricing structures which are too expensive, but this will have a negative impact on the business and the nation. Pricing of spectrum is very difficult balance, as there is no rule which can be applied everywhere.

India is a very unique market, as while it has the second largest population of consumers worldwide, it does also have low ARPU and significant expenditure to make on network deployment.

While telcos moaning about the price of spectrum is nothing new to consider, a slight concession from the Indian Government is certainly a step in the right direction. There will be months of negotiation and research to understand what a suitable pricing structure actually is, but this is a much more promising sign that spectrum auctions in the near future will be successful.

GSMA lobbies for more and cheaper spectrum

Ahead of WRC-19 mobile industry lobbying group the GSMA has lobbied on behalf of the mobile industry.

The main concern of the GSMA, and thus we can assume the global mobile industry, is access to plenty of licensed spectrum at reasonable prices. The ITU’s 19th World Radiocommunication Conference will take place in November, but lobbying groups are getting organised well ahead of time. While the cost and availability of spectrum is a perennial issue, the advent of 5G makes it arguably more important than ever.

The GSMA has opened two lobbying fronts in this case. The first involved an open letter loftily headed ‘Delivering the greatest value for society at WRC-19’. As indicated the letter conflates the progress of 5G with that of civilization itself and warns that any failure to heed the GSMA’s wishes could have dire societal consequences.

The second initiative took the form of a report that concludes ‘High spectrum prices leave millions unconnected’. Once more the fortunes of its members are intimately associated with the progress of mankind, as the GSMA opens its presentation of the award by saying ‘the negative impacts of high spectrum prices on consumers can no longer be disputed.’

“Spectrum auctions can’t be viewed as cash cows anymore,” said Brett Tarnutzer, Head of Spectrum at the GSMA. “Any government that prices spectrum to maximise revenue now does so with full knowledge that its actions will have negative repercussions on citizens and the development of mobile services. We now have clear evidence that shows by restricting the financial ability of operators to invest in mobile networks millions of consumers are suffering.”

The GSMA is in danger of laying it on too thick with these two attempts to pressure the powers that be into making it cheaper for its members to get hold of all-important spectrum. The negative impacts of doing otherwise can and will be disputed, while appeals to philanthropy are a bit rich coming from such an affluent and profitable industry.

Having said that there are many good arguments in favour of freeing up spectrum and not allowing them to be a public sector cash grab every few years. There’s no way it costs governments and regulators the amount of money they extort from operators in spectrum licenses to manage them and in its unsubtle way the GSMA seems to be saying that if you want to service your people, try being a bit more helpful about keeping them connected.

US starts edging towards mid-band spectrum release

The Federal Communications Commission (FCC) has released a statement all the telcos have been waiting for; there is finally going to be a spectrum auction for the 3.5 GHz band.

The telcos will have to wait more than year to access the valuable spectrum assets, though the FCC team will hope to discuss rules and procedures to carve up the much-desired mid-band spectrum next June. The auction will likely be later in the year or early 2021, though it is evidence of the slow-moving wheels of progress.

“Making more spectrum available for the commercial marketplace is a central plank of the Commission’s 5G FAST strategy,” FCC Chairman Ajit Pai said in a blog post.

“We’ve already completed two spectrum auctions this year and will begin a third on December 10. And at our September meeting, we will vote to seek comment on draft procedures for an auction of 70 MHz of spectrum in the 3.5 GHz band to begin on June 25, 2020.”

For the telcos, this will be welcome news. The US has largely focused on high-frequency spectrum bands, the mmWave assets, though commentators have suggested this has not been able to deliver the desired experience for 5G connectivity. High speeds might be achievable, however there is a serious compromise to be made on the coverage maps.

This is where the European telcos are reaping the benefits. Most of the 5G launches have been based on mid-band spectrum, striking what is a much more palatable balance between increased speeds and reasonable coverage. This coverage can later be supplemented by higher frequency connectivity to add additional speeds in the future, though the 100+ Mbps speeds should be more than enough for the moment.

“The 3.5 GHz band is prime spectrum for 5G services,” Pai said. “But when I became Chairman, we didn’t have the right rules in place to encourage the deployment of 5G in the band.

“That’s why I asked Commissioner O’Rielly to lead our effort to adopt targeted updates to the licensing and technical rules for the 3.5 GHz band with the aim of promoting more investment and innovation.”

Alongside frequencies in the 3.5 GHz band, the FCC is also considering new procedures to free-up more spectrum in the 3.7-4.2 GHz frequency range. Currently being used for video, this band will offer much more opportunity than the 70 MHz being released for auction in the 3.5 GHz band.

Although the mmWave frequencies will be critical in delivering the promised speeds for the 5G era, it does look like the US has gone the long-way around delivering the foundations for 5G. European telcos and regulators have generally prioritised mid-band spectrum, allowing for a 5G-ish experience on current network densities, with the long-term ambition of supplementing with higher frequencies.

This approach seems to be a much more reasonable one. It creates a foundation layer, with coverage maps consumers have come to expect, though speeds can grow as adoption increases and applications emerge which require the ridiculous speeds which are being promised.

With these auctions promised by the FCC, the US is heading in the right direction, albeit, quite slowly.

Israel takes the ‘Vickrey’ approach to 5G auctions

The Israeli telcos have taken a bit of a battering over the last 12-18 months and it seems the Government has a sympathetic ear with its new approach to auctioning 5G spectrum.

According to Globes, the Government will make use of an auction technique known as the Vickery method to divvy up the precious 5G frequencies. It is an interesting approach, and bundled together with other incentives, should create a much more investment friendly environment for the telcos.

A Vickery auction is a blind auction where the highest bidder wins the prize, but the second-highest value is actually paid. Although this approach is uncommon, for some it is believed to be fairer as it attempts to attract bids closer to the value of the asset but does not punish competition for inflated prices. Whether this proves to be true remains to be seen, though it certainly is an interesting approach.

This auction might turn some heads, but context is key. The Israeli telcos have had somewhat of a difficult period in recent years thanks to the introduction of aggressive new players and an on-going price war which has driven down profits. The Israeli Government has suggested revenues declined in telco by 5.6% in 2018, leading some to the assumption the telcos would struggle to fulfil the financial commitments of 5G networks.

“The financial state of the companies at this time has not escaped us, and the tender also takes this situation into account,” said Minister of Communications David Amsalem. “I congratulate my friends and participants in the tenders committee for their professional work. The dedication and responsibility exercised is what made it possible to lay the cornerstone today for the next era of technology.”

To attract further interest in the 5G bonanza, the Israeli Government will also introduce a number of incentives to lessen the burden of network investment. Payments for spectrum licenses can be delayed until 2022 for example, while there are also rebates being offered to those parties who meet geographical coverage expectations set over a four-year period.

Another interesting aspect of the auction is the shared network element. Some of the assets will only be offered to those telcos who agree to participate in the creation of shared infrastructure, a strategy the Government hopes will increase the efficiency of investments.

Looking at the frequencies available, the Government will attempt to ensure all telcos have a slice of the most desirable bands, 700 MHz for example, while a series of other lots will be available. The assets bought in the 2.6 GHz to 3.8 GHz frequencies will only be useable for 5G, while the other frequencies can be used to bolster 4G.

Only time will tell whether this approach will lead to a net-gain in terms of investment and network rollout, but the Israeli Government should be applauded for taking an alternative approach which is potentially better suited to local market dynamics.

Telcos complain about auction as German regulator bags €6.5bn

With 41 blocks available in the 2 GHz and 3.6 GHz bands, this spectrum auction has proved to be a busy one for Germany, but it certainly is a profitable one also.

Lasted 52 days and consisting of hundreds of different bids in what appeared to be a frustrating process, the German regulator will pocket €6.5 billion. It seems Deutsche Telekom and Vodafone were having the biggest feud, sending the total expenditure considerably north of the €3-5 billion expectation.

Sitting at the top of the pile, Deutsche Telekom spent €2.2 billion, while Vodafone contributed €1.9 billion. Telefonica spent €1.4 billion and up-start Drillisch wrote a cheque for €1.1 billion as it searches for a means to break the dominance of the three MNOs.

“Vodafone is committed to bring the full benefits of a digital society to Germany through our gigabit network including 5G,” said Vodafone Group CEO Nick Read. “We believe it is important to have a balance between the price paid for spectrum and our strong desire to create an inclusive society through investment in mobile network coverage.”

And while Read’s comments are as bland as you would expect for a press statement, there have been grumblings elsewhere over price. Deutsche Telekom has said the process has left a ‘bitter taste’.

“The network rollout in Germany has suffered a significant setback. The price could have been much lower,” said Dirk Wössner, Member of the Board of Management of Telekom Deutschland.

“Once again, the spectrum in Germany is much more expensive than in other countries. Network operators now lack the money to expand their networks. With the auction proceeds one could have built approximately 50,000 new mobile sites and close many white spots.”

Deutsche Telekom has secured 4 frequency blocks in the 2 GHz band and 9 frequency packages in the 3.6 GHz band. Vodafone on the other hand has purchased four different blocks in 2 GHz, and one continuous block of 90 MHz in the 3.6 GHz spectrum band. Telefonica collected two paired blocks in the 2 GHz band and seven unpaired blocks in 3.6 GHz.

Although Telefonica feels it can maintain its market share leadership position in mobile following this auction, it also felt the need to vent over a frustrating couple of months.

“We remain convinced that frequency allocation via auction was counterproductive for the expansion of mobile communications in Germany,” said Valentina Daiber, Chief Officer for Legal & Corporate Affairs at Telefónica Deutschland.

“The course of the auction showed that the design as well as the insufficient amount of available frequencies drove up the costs. From the consumer’s point of view and for Germany as a business location, these investment funds would be much better spent on network expansion.”

The telcos will certainly be glad they have a bit of breathing room from the auction process now, though the relationship between the regulator and industry seems to be turning very sour.

No clear winners in the latest US spectrum auction

Millimetre Wave spectrum has been a polarised topic in the US, and now the results are in from the latest auctions, some interesting tales have emerged.

Two spectrum auctions have taken place so far this year in the US, with both results being announced at the same time. $2.7 billion might be a lot to add into the FCC coffers, but it is considerably short of the monstrous amount of cash which was spent ahead of the 3G and 4G connectivity euphoria. Considering the amount of attention which has been given to mmWave, some might have expected this auction to attract more attention.

Strictly speaking, mmWave spectrum should be considered way above what we are talking about here, though the industry seems to have adopted anything above 26 GHz. Here, the two auctions are dealing with assets in the 24 GHz and 28 GHz spectrum bands.

Telco 24 GHz licences Total spend 28 GHz licences Total spend
AT&T 831 $982,468,996 N/A N/A
T-Mobile 1,346 $803,212,025 865 $39,288,450
Starry 104 $48,462,700 N/A N/A
US Cellular 282 $126,567,813 408 $129,404,200
Windstream 116 $20,439,360 106 $6,170,990
Verizon 9 $15,255,000 1,066 $505,733,170

The list of companies who have actually won spectrum assets through the auction is quite extensive, many are regionalised, rural telcos. We’ve only included the big ones here, and some interesting also-rans.

Although there still has been a considerable amount of cash spent during the auction period, the results do seem to imply mmWave might not be as crucial as previously believed. These assets might well be able to transmit huge amounts of data, but shorter ranges in comparison to the low- and mid-band bands, and the risk of signals being easily blocked, perhaps have telco fearing to dig too deep into the pockets.

Starting with Verizon, the telco now owns 65% of the available assets in the 28-31 GHz band. Through this auction and previous acquisitions of XO and Straight Path, Verizon has worked up quite a holding, though considering how much it has been beating its chest in the mmWave debate, it is perhaps surprising it low-balled the 24 GHz auction. Here, the firm only owns 1% of the total assets available.

From T-Mobile US’ perspective, the firm has shored up its spectrum breadth. Previously, the firm had not owned any licenses in the mmWave bands and has been the most critical of the potential of the assets. Spending the most in total across the two auctions, it seems the team is attempting to cover all bases, adding to the 600 MHz assets it has accumulated and plans to launch 5G on later this year.

AT&T’s focus was exclusively on the 24 GHz auction, where it spent the most cash, building out its portfolio in the higher spectrum bands.

Sprint is perhaps the biggest omission from the list, not winning any licenses across the two auctions, though it has previously aired its own criticisms of the potential of mmWave. The firm has started its 5G rollout, primarily using its 2.5 GHz spectrum for the launch. Whether its anonymity in this auction is evidence of its confidence in the success of the T-Mobile US merger we’ll leave you to decide.

There is of course life beyond the four major providers, and there have been some interesting wins across both the auctions.

FWA start-up Starry is an interesting one, winning 104 licenses in the 24 GHz auction. At the Big 5G Event in Denver this year, Starry COO Alex Moulle-Berteaux suggested the business was able to operate at such low prices while scaling in new regions was down to making best use of unlicensed spectrum assets. Spending $48 million this time around suggests a slightly new approach to delivering connectivity for the start-up.

These licences are now owned by Starry in 51 Partial Economic Areas (PEA), suggesting the business could be on the verge of much more aggressive geographical expansion. Details of where in the US Starry has won are not available just yet, but soon enough there will be much more colour on the plans. The assets might be used to shore-up performance in existing markets, or fuel geographical expansion.

US Cellular is another interesting case from the auctions, spending more than $250 million on 690 licenses. The telco currently has a presence in 23 markets across the US, with more than six million subscribers. It certainly isn’t going to challenge on a nationwide scale, however, with a stronger presence in the mmWave segment it could prove to be a worthy pain in the side to the big four telcos.

Windstream is the final ‘also-ran’ which we want to look at here. Spending just over $25 million on 222 licenses across both of the auctions, the team appear to be targeting the emerging FWA segment in some of the regions which are often overlooked in the US.

The firm launched a fixed-wireless access to business customers several years ago, and more recently has added products for consumers. In states such as Nebraska and Iowa, Windstream has pointed out signals can travel further thanks to “fairly flat topology”, while the mmWave assets will help the firm achieve the higher speeds demanded by enterprise and consumers alike.

What is worth noting is this is not the end of the spectrum auction bonanza. Over the next couple of months, the hype will start building for a combined auction in the upper 37 GHz, 39 GHz and 47 GHz bands.

That said, at the moment, the mmWave euphoria is appearing to be somewhat of a let-down.

US drives solid Deutsche Telekom numbers but German 5G auction is a drag

German operator group Deutsche Telekom has reported solid Q1 revenue growth, driven largely by T-Mobile US.

As you can see from the table below, revenues and EBITDA all grew nicely in Q1 2019. Profits, however, went in the opposite direction, apparently due to one-off things like the cost of trying to get the merger between TMUS and Sprint approved. Speaking of the US the second table shows just how much of the revenue growth is attributable to TMUS.

Q12019

millions of

Q12018

millions of

Change% FY
2018
millions of

Revenue 19,488 17,924 8.7 75,656
Proportion generated internationally in % 69.0 66.6 2.4p 67.8
EBITDA 6,461 5,269 22.6 21,836
Adjusted EBITDA 6,901 5,549 24.4 23,333
Adjusted EBITDA AL 5,940 5,487 8.3 23,074
Net profit 900 992 (9.3) 2,166
Adjusted net profit 1,183 1,190 (0.6) 4,545
Free cash flowa 2,370 1,382 71.5 6,250
Free cash flow ALa 1,557 1,318 18.1 6,051
Cash capexb 3,827 3,139 21.9 12,492
Cash capexb(before spectrum) 3,682 3,076 19.7 12,223
Net debtc 71,876 50,455 42.5 55,425
Number of employeesd 214,609 216,926 (1.1) 215,675

 

Q12019

millions of

Q12018

millions of

Change% FY
2018
millions of

Germany
Total revenue 5,357 5,325 0.6 21,700
EBITDA 1,946 1,915 1.6 8,012
Adjusted EBITDA 2,114 2,082 1.5 8,610
Adjusted EBITDA AL 2,108 2,058 2.4 8,516
Number of employeesa 62,358 64,695 (3.6) 62,621
United States
Total revenue 9,796 8,455 15.9 36,522
US-$ 11,124 10,394 7.0 43,063
EBITDA 3,210 2,360 36.0 9,928
Adjusted EBITDA 3,309 2,332 41.9 10,088
Adjusted EBITDA AL 2,679 2,331 14.9 10,084
US-$ 3,042 2,865 6.2 11,901
Europeb
Total revenue 2,891 2,811 2.8 11,885
EBITDA 1,035 905 14.4 3,757
Adjusted EBITDA 1,059 911 16.2 3,880
Adjusted EBITDA AL 945 898 5.2 3,813
Systems Solutions
Order entry 1,609 1,506 6.8 6,776
Total revenue 1,630 1,665 (2.1) 6,936
Adj. EBIT margin (%) (0.2) (2.3) 2.1p 0.5
EBITDA 79 19 n.a. 163
Adjusted EBITDA 125 57 n.a. 429
Adjusted EBITDA AL 92 60 53.3 442

“We got off to a successful start to the year,” said Tim Höttges, CEO of DT. “Deutsche Telekom has much more to offer than just our sensational success in the United States. We are seeing positive trends throughout the Group.”

Not included in his canned comments, but picked up by Reuters, was Höttges inevitable irritation at the amount of cash DT is having to drop on the interminable German 5G spectrum auction. We’re on round 305 of the bidding, believe it or not, and the total pledged has now reached €5,687,520,000. Expect to hear persistent muttering about how that’s money they can’t spend on infrastructure, etc, before long.

Rivals get Rogered in Canadian 600 MHz spectrum auction

Canada made 70 MHz of 600 MHz spectrum available nationally in a recent auction and Rogers got nearly half of it.

Low frequency spectrum such as this is especially handy in huge countries such as Canada due to its long range. Canada split the band, which covers 614-698 MHz including the guard band and duplex gap, into seven chunks of 10 MHz. Each of those in turn was divided into 16 regions, making 112 licenses in total. As you can see in the table below Rogers got 52 of those, dropping C$1.725 billion for the privilege.

Canada 600mhz auction

“We are proud to make leading and meaningful investments to build the 5G ecosystem in Canada and to help drive our country’s global competitive advantage,” said Joe Natale, CEO of Rogers Communications. “This 5G spectrum is a precious and scarce resource that will benefit Canadians and Canadian businesses across the country.”

It’s interesting that this is being positioned as 5G spectrum. Unlike millimetre wave, for example, there’s nothing uniquely 5G about low frequency spectrum, so we can only assume the Canadian government made the spectrum available on the condition that it’s used for 5G. Having said that the quote further down from Shaw appears to contradict that.

In distant second place in terms of spend was Telus. “The acquisition and deployment of this spectrum is critical to the advancement of our national 5G growth strategy and to the global-leading network quality, speed and coverage we provide to Canadians,” said Telus CEO Darren Entwistle. “As the demand for wireless data continues to grow, the acquisition of 600 MHz spectrum will enable Telus to deliver enhanced urban and rural connectivity to our customers on Canada’s fastest and most reliable network.”

Shaw Communications subsidiary Freedom Mobile seemed to get a good deal by paying half as much as Telus for more population coverage. “We have made significant investments to improve the wireless experience for Canadians, becoming a true alternative to the incumbents, with a differentiated value proposition,” said Brad Shaw, Shaw CEO. “The addition of this 600 MHz low band spectrum will not only vastly improve our current LTE service but will also serve as a foundational element of our 5G strategy providing innovative and affordable wireless services to Canadians for years to come.”

Conspicuously absent from the process was Bell, which seems to think it didn’t need any because it’s already sorted for low frequency spectrum. “Bell leverages each new generation of wireless network technology to drive renewed innovation and productivity growth, and with 5G we’ll take connectivity further than ever before with smart cities, connected vehicles and other revolutionary service advancements for both consumers and business users,” said Bell’s CTO Stephen Howe. “Bell looks forward to participating in upcoming federal auctions of the mid band 3500 MHz and high band millimetre wave spectrum that will be required to drive the Fifth Generation of wireless.”

So while Rogers got loads more licenses than anyone else, Freedom Mobile could be viewed at the big winner in terms of cost per population covered. According to Ovum’s WCIS Freedom only accounts for around 5% of Canadian mobile subscribers right now. Judging by the outcome of this auction it has ambitions to significantly increase that share in the 5G era.

TDC hoovers up Danish spectrum in latest auction

The Danish Energy Agency has completed its latest spectrum auction, with TDC running away with the majority of the available assets.

Of the 20 blocks in the 700, 900 and 2300 MHz frequency bands, TDC won 14, the maximum available to the telco at this auction. 3 Denmark acquired two 10 MHz blocks in each of the 700 and 900 MHz bands, while TT Network, Telia and Telenor’s joint venture, two 5 MHz in the 700 MHz and two 10 MHz in the 900 MHz band.

“Several frequency blocks provide higher speed, longer range and stronger indoor coverage, which gives us a unique position to strengthen and develop the best coverage in Denmark,” said TDC CEO Allison Kirkby.

“TDC has connected all over Denmark for almost 140 years, and the new licenses ensure that Danish consumers, companies and society enjoy new experiences, services and the many opportunities that 5G offers.”

With ambitious plans to rollout 5G across Denmark by the end of 2020, this is certainly an aggressive sign of intent from TDC. The telco paid NOK 1.6 billion, roughly €210 million, for its haul, while 3 Denmark paid a total over roughly €68 million. TT Network paid €14 million for its 700 MHz assets and nothing for 900 MHz, though it will be charged with coverage obligations.

As it currently stands, according to Ovum’s WCIS database, TDC is currently the market leader with 42% market share, TT Network controls roughly 40% of subscriptions, while 3 collects the remaining 18%.

While these prices might seem ludicrously cheap in comparison to other spectrum auctions which have been taking place around the bloc, Denmark’s population of 5.8 million ranks it at 111th worldwide, while its land mass ranks at 130th.