Monday, 22 April 2019

German 5G auction beats analysts' expectations, passing €5bn

By Chris Kelly, Total Telecom
Thursday 11 April 19

Bidding is still ongoing as Germany's big four operators vie to secure spectrum

Germany's 5G spectrum auction has raised more than €5 billion, exceeding analysts' expectations. Germany is auctioning off spectrum in the 2.0GHz and 3.6GHz spectrum, which will underpin the rollout of 5G network services across Germany in the first half of 2020…

Germany's 5G spectrum auction has raised more than €5 billion, exceeding analysts' expectations.

Germany is auctioning off spectrum in the 2.0GHz and 3.6GHz spectrum, which will underpin the rollout of 5G network services across Germany in the first half of 2020.

In total, the auction has raised €5.06 billion, with bids received from Deutsche Telekom, Vodafone Deutschland, Telefonica and Drillisch.

Germany's Finance Minister, Olaf Scholz, previously stated that he expected the auction to raise between €4-5 billion. Standing at €5.06 billion after 169 rounds of bidding, the auction will continue until there are no new bids on any of the 41 blocs for sale.

German network operators have previously been critical of the government's strategy of maximising revenues at auction by creating artificial shortages.

Deutsche Telekom's CEO, Tim Hoettges, was critical of the way spectrum was being packaged for auction, arguing that the current system created an artificial shortage of availability. 

“An artificial shortage of public resources is being created, which may push up the price,” Hoettges told the company’s annual general meeting in Bonn, as first reported by Reuters.

“In the end, there is no money for the build-out,” he added.

 

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