No aggressive bidding for 5G spectrum

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Aggressive bidding is unlikely at the 5G auction that starts Monday in the Netherlands. Analysts at KBC Securities say that only three parties have indicated that they are bidding: KPN, VodafoneZiggo and T-Mobile. The chance that another company will participate in the auction is small because the barriers to participation are relatively high. For example, the minimum amounts that the State wants for the different frequency blocks are quite high.

Another factor is that there is a system where two parties cannot completely exclude the third. Participating companies must also have minimum national coverage and sufficient coverage per municipality.

Currently, T-Mobile has the most bandwidth and KPN the least. KPN could therefore be the most active. Nevertheless, market researchers also think that the amounts paid during this auction will not be much above the minimum of 914 million euros. Another factor is that the auction of frequency on the 3.5 GHz band will only be auctioned next year.

The KPN share stood at 2.33 euros on Monday around 9.30 a.m.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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