Germany’s telecom regulator, the Bundesnetzagentur, this week began the bidding process for spectrum licenses in the 700 MHz band, becoming the first European country to open up the spectrum band deemed ideal for broad LTE deployments. Also on the block are spectrum licenses in the 900 MHz, 1800 MHz and 1.5 GHz frequency bands.
The auction has only three players: Deutsche Telekom, Telefonica Deutschland and Vodafone, and some observers believe that it will raise no more than $4.35 billion, according to Reuters. The auction is expected to take several weeks.
The regulator is using the principle of simultaneous multiple round auction, and representatives of the mobile operators will work from secured rooms at the Bundesnetzagentur’s offices and communicate using dedicated datalines and encrypted messages. No laptops or mobile phones will be allowed.
Meanwhile in the U.K., regulator Ofcom launched a consultation on its plan to auction off spectrum in the 2.3 GHz and 3.4 GHz bands. The regulator is proposing to auction some, but not all, of the available spectrum later this year or early next year.
The measured approach is in response to major deals underway that will dramatically change the British telecom market: namely, BT’s plans to buy mobile operator EE; and an agreement by Hutchison Whampoa, the owner of operator Three, to acquire O2 from Telefónica.
Ofcom will take comments on its proposed plan until June 26.
More telecom news from Europe, the Middle East and Africa:
MTN faces fuel shortages in Nigeria, strikes in South Africa. MTN has been beset by troubles in its two biggest markets in Africa, Nigeria and South Africa, BDLive reports. Nigeria’s fuel shortages have hurt airline, banking and telecom companies. MTN warned that if the shortages continue, they could lead to a network shutdown. In South Africa, the company is at an impasse with the Communication Workers’ Union over compensation and union recognition. A recent strike by more than 1,000 union members stopped service at its call centers in South Africa.
Telefónica Deutschland sells shops to Drillisch. The German unit of Telefónica said this week that mobile virtual network operator Drillisch would take over as many as 301 of its shops. The move follows Telefónica’s purchase of E-Plus from KPN for $9.34 billion. All told, Telefónica Deutschland plans to cut a third of its 1,750 shops over the next five years.
Telecom Italia reportedly planning to sell 40% of its tower unit. The Italian telco is planning an initial public offering for up to 40% of its tower unit Inwit in June, according to research notes seen by Reuters. Mediobanca Securities valued Inwit, which operates 11,500 sites, at $2.2 billion to $2.8 billion.
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