Monday, May 16, 2011

4G licenses will cost over 2.5 billion euros

In an interview with Le Figaro, Eric Besson, Minister of Industry and the Digital Economy, a detailed timetable for licensing of 4G phones. He also gave the reserve price set by the government: 2.5 billion euros in total. The first stage of the licensing 4G will be the official call for applications for the auction, to be published in the first days of June.

"Nominations will take place in September. Frequencies in the 2.6GHz band will be awarded in October, those of the 800 MHz band in November. December 1, operators will own the spectrum obtained. In total the government wants to recover more than $ 2.5 billion auction: $ 1.8 billion for the 800 MHz and 700 million for the 2.6 GHz.

These frequencies are in fact not all the same value. The 800 MHz band is very interesting because its waves propagate away, facilitating a rapid coverage of the territory. It is no coincidence that these frequencies were used for analogue television until this year. Lots frequency of 2.6 GHz (released by the Department of Defense) have a further interest: these waves propagate less, but better penetrate buildings.

They may therefore serve to operators to cover densely populated areas. They are also available in much larger quantities: the government has defined 4 groups of 800 MHz frequencies, but 15 lots of 2.6 GHz. The mechanism of cutting Batch been critical of the operators. In the coveted 800 MHz band, the government has created two lots of 10 MHz and two lots of 5 MHz, the same operator can not win more than two lots for auction.

SFR, Bouygues and especially Orange Free fear therefore roundup 15 MHz, this fact would limit the number of operators able to deploy a 4G network extended to three. For cons, the government in any way limit the number of operators in the 2.6 GHz band, so it is conceivable that MVNOs participating in the auction.

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