8 May 08: Sweden's spectrum auction in the 2.6 GHz band concludes
Sweden's second spectrum auction over the Internet, comprising 190 MHz (14 FDD and 1 TDD frequency blocks) in the 2.6GHz band, concluded on 8 May 2008 after 16 days of bidding and 112 bidding rounds. The total amount bid for all assigned licenses was SEK 2,099,450,000 (approximately EUR 226 millions). Winning bidders also pay an administrative charge to the Swedish Post and Telecom Agency (PTS) of SEK 25,000 per MHz. Licences have been awarded to H3G Sweden, Intel Capital Corp, Tele2, Telenor and TeliaSonera. The licenses are technology and service neutral and may be used, for example, in mobile telephony or wireless broadband. The term of the licenses is 15 years. H3G Sweden won the smallest licence consisting of 2x10 MHz FDD for a price of EUR 31.7 million. The PTS website contains further details here.
The auction format was a fairly traditional SMRA (simultaneous, multi-round, ascending auction), nearly identical to the format used last year in Norway to sell the same spectrum band (the so-called '3G-extension band'). The Norwegian auction raised NOK 229 million (approx. EUR 29 million). In Britain, Ofcom is currently finalising plans to sell the 2.6 GHz band using a combinatorial clock-proxy auction format. The Dutch government has also recently published plans to use the same format in its forthcoming auction of 2.6GHz spectrum. Further information on Ofcom's proposed clock-proxy auction can be found here. Market Analysis' commentary on this auction format is available here.
Market Analysis advised H3G Sweden on auction design and bidding strategy during the Swedish auction and continues to advise H3G UK on the forthcoming Ofcom auction.