Mobile Phone Forums
Welcome to the Mobile Phone Forums

Go Back   Mobile Phone Forums > Mobile Phones > News
Register FAQ Mark Forums Read

News All the latest mobile and cell phone news delivered straight to your doorstep!

Thread Tools Display Modes
Old 09-05-2008, 12:18 PM
newsprovider newsprovider is offline
Senior Member
Join Date: Mar 2007
Location: UK
Posts: 4,313
newsprovider is on a distinguished road
Swedish 2.6GHz auction reflects ‘realistic’ spectrum value in Europe

Swedish 2.6GHz auction reflects ‘realistic’ spectrum value in Europe, according to Analysys Mason
LONDON, UK, 09 MAY 2008 – The second European 2.6GHz spectrum auction concluded this week in Sweden. With auctions coming up in other European countries, including the UK, Austria and the Netherlands, the outcome of the Swedish auction provides much needed information on the price that operators will pay for 2.6GHz spectrum throughout Europe, says Analysys Mason, the premier advisers on telecoms, IT and media (Analysys Mason : Welcome to Analysys Mason).
The Swedish auction concluded at a price of EUR0.13/MHz/pop, with unpaired spectrum going for just below EUR0.04/MHz/pop and paired spectrum for EUR0.16/MHz/pop.
“Clearly prices fetched at the 2000/2001 European UMTS auctions, especially in the UK and Germany, are unlikely to be repeated. On the other hand, operators are reporting a rapid uptake of mobile broadband dongles, and new WiMAX players may be eager to enter the arena, suggesting that prices may still be substantial,” says Bart-Jan Sweers, Strategy Consultant at Analysys Mason.
Despite being significantly below the UK and German UMTS auctions in 2000, the prices achived in the Swedish auction were considerably higher than the recent Norwegian 2.6GHz auction (EUR0.03/MHz/pop).
“Interestingly, the Swedish auction may be a more reliable indicator of prices in other upcoming European auctions than the Norwegian auction. The reason for this is that the competitive situation in Sweden, with four mobile players, is more representative of the situation in most European countries than the Norwegian two-player market,” says Sweers. “Still, there are plenty of specifics in the Swedish situation that should lead to caution when using this auction result as a benchmark.”
For example, taking the viewpoint of a bidder for paired spectrum in a country that adopts the CEPT band plan (2 x 70MHz of paired spectrum plus 50MHz of unpaired spectrum), two factors need to be taken into account when considering the Swedish outcome.
Firstly, just as in the Norwegian case, Sweden has a very low population density compared to most European countries. Consequently, it has a relatively low traffic density, leading to lower spectrum demand and hence lower prices. Secondly, later auctions may be affected by rising expectations in the industry regarding the uptake of mobile data and the anticipation of LTE approaching commercial availability.
Bidders for unpaired spectrum also need to factor out the effect of the PTS’s decision to auction the unpaired spectrum in one block. This decreased the liquidity of the spectrum, and potentially decreased its value.
“Some European countries (e.g. the UK and the Netherlands) plan to deviate from the CEPT band plan by using a flexible band plan, in which the split between paired and unpaired spectrum is not fixed but varies according to demand at auction. In theory, this will enable a more efficient allocation of spectrum among FDD and TDD operators, and therefore could lower prices overall but at the same time could lead to higher prices for paired spectrum. The Swedish result suggests that competition between bidders for paired and unpaired spectrum will be minimal, given that the price fetched for unpaired spectrum was four times lower than for paired spectrum,” says Sweers.
Having suggested that the Swedish auction may ultimately prove to be at the lower end of 2.6GHz auction prices, it is important to stress that operators should remain conservative in their assessments of spectrum value.
The upcoming 2.6GHz auctions are not the only way for operators to prepare for future demand. Refarming of 2G spectrum, the digital dividend and general easing of spectrum restrictions improve the supply side of spectrum, while femtocells may well relieve any capacity issues. Operators should therefore carefully consider such alternative options when valuing 2.6GHz spectrum.
For further information or to speak to one of our experts at Analysys Mason please contact the press office or telephone +44(0)1223 460600.
Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Google to Join Spectrum Auction - New York Times News News 0 02-12-2007 10:22 PM
Government plans rules for massive spectrum auction - America's Network News News 0 12-07-2007 9:49 AM
Spectrum auction could revolutionize US telecoms - Forbes News News 0 11-07-2007 5:56 PM
FCC Begins Outlining Spectrum Auction - Wireless Week News News 0 26-04-2007 4:45 PM

All times are GMT. The time now is 10:24 AM.

Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.0.0 RC6 © 2006, Crawlability, Inc.
Copyright ©2015