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Everything Everywhere gears up for spectrum sale

12 января 2012

U.K. mobile joint venture Everything Everywhere revealed on Wednesday that it is in discussions with external advisors over the sale of some of its spectrum ahead of LTE auctions scheduled for the end of 2012.

"The sale of the spectrum was a commitment made to the European Commission by France Telecom and Deutsche Telecom following the joint venture between Orange and T-Mobile UK in 2010," a spokeswoman for Everything Everywhere explained to Total Telecom.

Everything Everywhere plans to offload two 15-MHz chunks in the 1800 MHz band. The spokeswoman was unable to provide a precise timeframe for the sale but said it will take place before Ofcom's spectrum auction planned for the end of this year.

The Financial Times reported that the sale could fetch up to £400 million, according to bankers with knowledge of the deal.

Everything Everywhere's spokeswoman could not provide any specific estimates on the value of the spectrum.

"There are many factors that contribute to the value of spectrum," she said. "Potential revenue, cost benefits, and the annual license fees all play a part in determining its value."

"We will be clearer on a number of these elements once Ofcom publishes its second [spectrum auction] consultation."

Ofcom was due to publish its second LTE auction consultation by the end of 2011.

Everything Everywhere's spokeswoman admitted that selling some of its spectrum could "put pressure on the network". However, she said that by the time the spectrum is sold Orange's and T-Mobile's networks will be fully merged, and the spectrum itself will not be released until late 2013.

"It won't have any negative effect on customers," she insisted.

"Whatever the outcome, Everything Everywhere will ring-fence proceeds gained from the sale for the ongoing development of its U.K. network," she concluded.

Regulations allowing the trade of spectrum between operators only came into effect in June 2011.

Ofcom said in February when it first announced the plans that the new rules would allow "operators with a greater need for spectrum...to make offers for spectrum from those who need it less".

Источник: Total Telecom

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