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Czech Republic cancels mobile auction after bids go too high
2013-03-11 09:13:00| Telecompaper Headlines
(Telecompaper) Czech regulator CTU canceled the auction of frequencies in the 800, 1,800 and 2,600 MHz bands, after bids became too inflated. The last bids for the spectrum exceeded CZK 20 billion and were still growing. The CTU said the main objective of the auction is supporting LTE and the eventual entry of a fourth operator on the market, not income to the state budget. The current level of bids is not feasible and would lead to a dramatic and overall price increase for new 4G services and a significant delay in deployment of LTE networks, the regulator said. CTU prepared the auction terms in line with other EU auctions and with the consulting company Grant Thornton. CTU decided to cancel the auction based on a continuous monitoring of the auction and evaluation of experience in countries which completed auctions. For example, in the Netherlands, the auction late last year resulted in prices several times more than original estimates. Such auction results were also criticized by the EU commissioner Neelie Kroes. Participants in such auctions often face problems securing a return on the cost of the licences, which impacts investments and prices for end-users. CTU is currently reviewing the auction conditions. The cancelled auction was launched on 12 July 2012, and the participants were Vodafone Czech Republic, T-Mobile Czech Republic, Telefonica Czech Republic, and PPF Mobile Services (private equity fund of Petr Kellner).
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Category:Telecommunications