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German spectrum auction ends

Germany's spectrum auction came to an end on Thursday with bids totalling €4.38 billion, markedly less than the €8 billion figure touted by analyst firm KPMG.

The country's three largest players - Telefonica O2 Germany, Vodafone and incumbent Deutsche Telekom - each secured two paired 5-MHz chunks of spectrum in the lucrative 800-MHz band. Meanwhile E-Plus – the German unit of Netherlands-based KPN – failed to win any 800 MHz spectrum.

A total of 41 spectrum blocks were tendered in the auction, which began on 12 April. As well as the 800-MHz band, airwaves were offered in the 1.8-GHz, 2-GHz, and 2.6-GHz frequency bands.

Germany's network regulator revealed that Vodafone secured 12 blocks of spectrum for €1.42 billion; Telefonica paid €1.38 billion for 11 blocks; E-Plus bought eight blocks for €283.6 million, while Deutsche Telekom acquired 10 blocks of spectrum for €1.3 billion.

"We acquired all of the frequency blocks necessary to move forward with our network expansion," said Niek Jan van Damme, board member and head of Deutsche Telekom's German operations, in a statement.

"We are thus establishing a key basis for increasing mobile data revenue in line with our strategy."

Deutsche Telekom said it plans to use its 800 MHz spectrum to roll out mobile broadband services based on LTE to rural areas. The bandwidth is particularly suited to extending coverage to remote areas since it requires fewer base stations.

The operator also acquired airwaves in the 1.8-GHz and 2.6-GHz bands, which it said will be used to bolster its network coverage in larger conurbations.

"The outcome of the spectrum auction puts Germany in a leading position when it comes to the award of the digital dividend in the 800 MHz range in Europe, and at the cutting edge of mobile broadband development," said Deutsche Telekom.

"If the efficient use of LTE is also to be guaranteed on an international level, neighbouring countries now need to follow suit," the company added.

Источник: Total Telecom

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