Bloomberg News

Czech Telecom Office to Stick to New Entrant Auction Allocation

June 24, 2013

The Czech Telecommunications Office will stick to its plan to allocate radio frequencies to a new entrant in a rerun spectrum auction by the end of July over the objections of current operators, the regulator said.

The Prague-based regulator, also known as CTU, will set aside two blocks of the 800 MHz bandwidth for a new player, as spelled out in disputed rules, it said a statement published on its website today. CTU also introduced a new maximum cap for all players to buy two blocks of the 800 MHz bandwidth, the most crucial for building a country-wide 4G network, it said.

The office had a month to consider complaints about the rules from existing providers during a six-week public discussion period. The regulator previously canceled the sale of 800 MHz, 1,800 MHz, and 2,600 MHz spectra over concerns that bids totaling more than 20 billion koruna ($1 billion) were too high and would slow investment and boost costs for customers through higher charges.

Operators across the globe are rushing to build faster mobile networks based on Long Term Evolution, or LTE, technology that will enable consumers to use enhanced services to shop online and to communicate better.

Existing operators T-Mobile Czech Republic AS, Telefonica and Vodafone Czech Republic bid for the licenses along with PPF Mobile Services AS, a newcomer to the local market.

To contact the reporter on this story: Lenka Ponikelska in Prague at lponikelska1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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