At the end of February, Telenet quietly went to the Council of State against the legislation behind the telecom auction at the beginning of this week. It is still uncertain whether the company will continue with the case. That writes De Morgen on Friday.
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The auction for frequencies to operate a mobile network in Belgium raised a total of 1.2 billion euros on Tuesday and a surprising new player on the market: the telecom company Digi. The arrival of Digi as the fourth telecom player – next to Proximus, Telenet and Orange – should ensure lower telecom prices.
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But there is a chance that it will soon be back to square one. N-VA Member of Parliament Michael Freilich, member of the opposition, points to a publication in the Staatsblad. This shows that Telenet already approached the Council of State at the end of February to request the annulment of part of the legislation behind the auction. The company confirms.
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Telenet has not been set up with a number of advantages that the government has provided for the entry of a fourth telecom player. It considers this market distortion. “Telenet is of the opinion that the provisions that reserve spectrum for (a) potential newcomer(s) are not in line with the EU framework,” said a spokesperson.
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We’re still waiting. It often happens in the telecom sector that procedures are started and that they are later stopped.
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It is still unclear whether Telenet will continue with the procedure. Judging by the press release that the company sent out on Tuesday after the safe, that chance seems rather small, according to De Morgen. In it, CEO John Porter says that he is “very satisfied” with the outcome of the auction, in which Telenet has acquired frequencies for a “very competitive price”.
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A final decision will only be made when the auction has been technically completed, within a few weeks. The cabinet of competent minister Petra De Sutter does not seem to be very concerned yet. “We are still waiting. It often happens in the telecom sector that procedures are started and then stopped again.”
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Also read: What does the arrival of a fourth telecom operator mean? Will prices fall? When? And will there now be 4,000 new cell towers?(+)
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