MAINZ, Germany-Bidding for 12 blocks of Universal Mobile Telecommunications System spectrum picked up speed last week with the total bid amount nearing $4 billion. The amount is still substantially less than projections that the auction will bring in around $32 billion for the German government.
After a cautious start July 31, the bidding pace picked up substantially last Thursday.
Non-incumbent Mobilcom, backed by France Telecom, has been the most aggressive bidder and after 52 rounds held the highest bid of $378 million for a 2-by-5 megahertz spectrum block. Mobilcom also held the highest bids for two additional spectrum blocks.
Earlier in the week, German telecom regulator RegTP was reported to be investigating collusion between Mobilcom and Swisscom-backed Debitel after Mobilcom’s Gerhard Schmid was quoted as saying he was open to cooperation with Debitel after the auction’s conclusion. The regulator found no collusion, but warned participants that public comments could breach auction rules.
Seven participants are bidding on 12 blocks of spectrum. Operators must win at least two blocks of spectrum to receive a license.
In addition to Mobilcom and Debitel, the country’s four incumbent operators-E-Plus, owned by KPN; Vodafone Group AG-controlled Mannesmann Mobilfunk; Deutsche Telekom’s T-Mobil; and British Telecommunications plc-backed Viag Interkom-are bidding in the auction. Group 3G, a consortium composed of Sonera and Telefonica, also is contending for a German license.
