With the auction of LTE enjoys Orange – Republic

The operator received the most space in the ether to offer mobile internet, in addition to a relatively low price.

On Monday, the Office of Electronic Communications has published the detailed results ended after nine months of tumultuous 800 and frequency auction 2600 MHz (ie. the auction LTE). In the list of winners who have declared that they will pay a total of 9.2 billion zł, there were no surprises.

Orange took the most

As expected most bandwidth Orange Poland won the auction. He received two of the five blocks in the 800 MHz and three blocks within 2600. The total pay for frequency reservations for 15 consecutive years nearly 3.17 billion zł, of which 3.05 billion zł – for the 800 MHz band. The Management Board, despite high prices at auction on Monday did not hide his satisfaction. And not without reason: Orange is the only one in the country had so far frequency, which can provide high-speed mobile Internet services LTE. P4 (Play network), T-Mobile Poland, and NetNet (associated with Cyfrowy Polsat Group) won just one block valuable resource of 800 MHz. The relatively low price (1.49 billion zł) pay the network operator Play. The other two players clashed in the struggle for these same blocks and they offered after more than 2 billion zł. Overall, the frequency of play will pay 1.72 billion zł T-Mobile – 2.14 billion zł, NetNet – 2.05 billion zł, and Polkomtel – less than 156 million zł (stock market analysts assume that the costs charged to NetNet not – at least not directly – listed companies Solorz-Zak). Orange, probably the only one , believes that auction results are good news for him. “Orange Poland wins the auction very precious bandwidth of LTE, which is an important step in creating value from growing data” – gave the company’s management.

There will be processes?

The other players, full of legal uncertainty, or leave his wicket in the form of warnings that the auction could lead to lawsuits (although they promise that they take reservations), or – as a group Cyfrowy Polsat – silent. ” We analyze the entire time course of the auction due to the adopted questionable legal arrangements. Depending on the results of that analysis and further course of action in the booking process, we reserve the possibility of taking the necessary legal steps “- gave T-Mobile on Monday. A few days earlier similar warning could be found in the position P4, who first announced that the result achieved in the auction. Contrary to some reports this operator to process not the covenant, but both its shareholders (Thor Bjorgolffson and Panos Germanos) have already announced that they could apply to arbitration. Anyone can fight for 500 million euros. Magdalena Gaj, President of UKE, argued on Monday that lawsuits expected from the beginning, because accompany each procedure rozdysponowywania rare, and therefore valuable radio frequencies. Minister of digitization Andrzej Halicki, who signed up under Regulation auction ending after 116 days of its term, reiterated that the document is legal. Previously, Polkomtel and play in providing review constitutionalists convincing that it is just the opposite. Is disputes disrupt network construction on new frequencies? – Today I do not see such a threat – said president of the grove when asked whether there is a legal formula which may prevent the granting reservation to the winners.

What effect

Operators will pay for reservations band at the end of this or early 2016 years. Yes predict Orange and head of UKE. The new frequencies will enable businesses to reach new customers (at least the second half of 2016.) And gradually improve performance simultaneously access services at a lower cost. Split are of the view that the high prices at auction will lead to price increases mobile Internet. – Prices should fall – says the minister Halicki. – If we assume that bandwidth is an important asset for operators, their offer should develop. Competition in turn causes a reduction rather than an increase in prices – he explained. UKE was more cautious: – Prices will definitely not go up – he believes. – Increase the market for operators. Will it bring down prices – so categorical opinion expressed would not – she said. Veronika Sutedja, an analyst at the Austrian Erste Bank, however, believes that the price of services may increase. – You after the auction, preceded by a consolidation among operators so happened – shows. After that, to avoid draining consumers’ pockets, but also to reassure owners of telecom, government and experts start to think about other than backfilling budget holes allocate money for the band. – I am a supporter solutions to some of the money that seem operators on a frequency coming back on the market – said Magdalena Gaj. For this you will need the law and the new mechanism. Before the winner of the auction will offer LTE services in the new band, a lot has to happen. They played on “anonymous” blocks. The reservations will gain a specific place in the ether, and thus – Neighbourhood allowing to build faster Infostrada, if they do it together with other operators. Neighbors would like to Orange with T-Mobile, and NetNet – with Sferia, which already has a band block 800. UKE also specify where the companies will have to provide access service. Expenses associated with having to pay for the auctioned bandwidth certainly temporarily reduce telecom financial results.

Controversial auction

Anna Streżyńska, b. The President of the Office of Electronic Communications I expect that after the auction very low price mobile broadband in Poland will go up, but auction will be just a convenient excuse for operators . Both of their point of view and for the entire market will be important to the consent of the authorities to the fact that the auctioned amount can be reinvested. zł 9.2 billion is twice more than those in the first axis of the operational program “Digital Poland”, which is still not enough to achieve the needed investment in broadband networks in Poland. Such a decision could be an important signal of the government constituted after the elections, that – for a change – investing in digitization, so the development of the country, he treats seriously. Discuss with us Facebook: www.facebook.com/ekonomia Is the Ministry of digitization did well to interfering in the course of the auction LTE in the middle of it