UK telecoms consultancy Coleago, which is doing a nice job of tracking spectrum auctions around the world, has calculated that a lack of competitive pressure in Sweden’s 800MHz auction yielded just 63% of the price per MHz per pop that 800MHz spectrum fetched in Germany.
A note from Coleago’s MD Graham Friend said that the result of the auction was a benchmark of US$/MHz/Pop 0.58, which is 63% of the value achieved in Germany and only 32% of the value achieved in Hong Kong.
“Both the German and Hong Kong auctions faced much higher levels of competitive tension,” Friend said. Capping the maximum bid at 2x10MHz per bidder may have limited the competitive aspect of the bidding, Friend said.
HI3G, TeliaSonera and Net4Mobility, a joint venture between Telenor and Tele2, all bid for that maximum of 2x10MHz spectrum, with Hi3G paying about half the amount for its block of spectrum compared to the other two bidders. TeliaSonera’s said that its licence cost it EUR96 million. Com Hem and Netett Sverige participated unsuccessfully in the auction.
Friend noted, “This outcome is particularly interesting as HI3G may well have had one of the highest valuations for the spectrum as HI3G, prior to the auction, did not hold any sub 1GHzspectrum. This represents another good result for HI3G as the company secured 2x10MHz of 2.6GHz spectrum in the Danish auction at a fraction of the prices paid by other bidders on a per MHz, per Pop basis.”
The Swedish and Post Telecoms Authority announced the results of the 800Mhz auction on Fiday, 4 March, the same day the Hong Kong auction closed. The acquired frequency blocks in the 800 MHz frequency band are not subject to any conditions related to construction pace or population coverage in Sweden.