We bring the reactions of operators who have reached important frequencies for up to 20 years. It is a question whether for not too high a price.
Completed Auction of frequency bandsorganized by the Office for Regulation of Electronic Communications and Postal Services, caused embarrassed reactions in the telecommunications sector. Although all four Slovak mobile operators secured frequencies for further development of their networks, the resulting amount of auction. More than EUR 140 million above the starting price – it raises questions whether the final amount for the available band is not too high.
The fight of four increased the prices
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Frequency bands are a key asset for mobile networking. Four entities – Telekom, Orange, O2 and 4ka – participated in the auction. The result was an intense struggle, especially in the case of an attractive 800 MHz band, which is important for wide coverage. Currently used for 4G.
While three big players tried to regain the frequencies used so far, 4ka as the youngest operator wanted to buy a low band that is suitable for building a rural network. She had no access to him yet. Despite the efforts, no block in 800 MHz band did not get. Nevertheless, the prices have increased extremely – the three largest operators per band will pay twice the price compared to the initiative.
Immediately after the end of the auction, the chairman of the regulator remained surprised from the results. “On the one hand, we are looking forward to the record revenue will help consolidating the state budget, on the other hand, for the European conditions, the excessively high -competing price for frequencies can slow the investment plans for the development of digital services and innovation,” said Ivan Marták, chairman of the Regulatory Office.
We were interested in how the results are evaluated by the operators themselves. Unlike other operators, 4ka does not want to comment on the results of the auction. It will improve in the coming years. So far, it has only access to 1,800 MHz and 3.5 GHz band. The new one reaches a small part of 900 MHz AK 1,500 MHz, 2,100 MHz and 2,600 MHz band.
Orange: Up to extreme prices
Orange says that its aim is to provide services in the highest quality of this point of view and evaluate the obtained band positively. However, he admits that the competition of four operators has expelled prices to “extreme”.
“The high intense competition in the final sum has led in some bands to amounts that are also extremely high in international comparison. This is proof of intense competition in the market and healthy competition. Tomáš Palovský.
Orange emphasizes that the quality and scope of services for its clients will not be negatively affected. He does not want to evaluate whether she becomes a full -fledged competitor, as she got to other bands. “To evaluate positioning or competition steps, we do not belong,” added Palovsky.
Photo gallery
The bands were bought by four large operators.
Source: pexels.com and editorial editors
Telekom: We will pay the most
Most of the auction will pay for the bands obtained, which will contribute to the state budget of almost EUR 165 million. The company secured the spectrum in all the bands offered.
“The outcome of the auction creates space to maintain a technological lead. At the same time, it is a clear proof of our long -term commitment to invest in infrastructure. Our goal is that customers always have the best experience,” said Telekom CEO Melinda Szabó.
O2: fair auction, but cost -effective
O2 also secured frequencies until 2048. The operator also reached the bands of 1,500 MHz and 2,600 MHz as part of the auction. Frequencies are to serve as capacitive layers but also
Further generations of networks that will come in the future.
The operator highlights the conditions of transparent and non -discriminatory competition. However, he was also surprised by the final prices for the bands.
“Especially in the case of a frequency of 800 MHz, it is approximately up to twice the value compared to the world average, which can create disproportionate financial pressure on the telecommunications segment in the coming years,” O2 describes.
O2 points out that high costs may affect further infrastructure investments. The operator therefore hopes that the state will use the funds obtained to support the development of the telecommunications market – for example, to improve coverage in locations where there is only a weak or no signal, or it could be the help of the state to develop infrastructure for the provision of fast Internet.
Learn more about the auction and details about what the individual frequencies fit:
