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Czech regulator reschedules LTE auction

Deutsche Telekom has acquired the remaining 39.23 stake in its Czech subsidiary for €800m

The Czech Telecommunications Office (CTU) has announced that its LTE auction will begin mid November 2013. The Czech regulator abandoned its efforts to hold the auction in March this year, when bids spiralled out of control.

The regulator is auctioning 800MHz, 1800MHz and 2.6GHz spectrum. Entries to bid can be made until September 30, 2013, the CTU said. It added that it plans to grant the licences at the beginning of 2014.

A new entrant will be able to reserve spectrum as part of the new auction conditions, joining Telefonica, T-Mobile and Vodafone in the market. In the abandoned March auction, PPF Mobile Services was confirmed as a bidder for the spectrum.

“The objectives of the auction are clear,” said Jaromir Novak, chairman of the board. “We strive to develop new services, mobile broadband internet access and encourage competition, creating the conditions for the entry of another operator with nationwide operations, and ensure efficient use of spectrum.”

In March the CTU was forced to abort the auction after bids had already topped CZK20bn (€780m) and were still rising. The regulator decided to rein in spend to stop the charges being passed on to consumers.

“Such excessive prices of the auctioned frequencies would have to negatively translate into excessive charges for fast mobile internet,” the CTU said at the time. “We therefore consider it necessary to step in and prevent future negative consequences for the customers.”

 

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