TKK allocates 450 MHz frequencies: Auction proceeds total EUR 5,974,900

Press release dated 19 April 2006

On April 18, 2006, the Telekom-Control Commission (TKK) completed the two-stage allocation procedure for frequencies in the 450 MHz range, allocating frequency packets to Green Network AB of Sweden as well as T-Mobile Austria GmbH. These two companies emerged as the winners of the auction procedure by outbidding the Swedish company Nordisk Mobiltelefon AB. T-Mobile acquired one packet of roughly 2 x 1.25 MHz for EUR 1,100,000, while Green Network acquired two packets totaling approximately 2 x 2.5 MHz for the sum of EUR 4,874,900.

The total proceeds from the auction thus came to EUR 5,974,900, which will go to the Republic of Austria. The average price per MHz was substantially higher than the average prices attained in previous frequency auctions.

First auction to use combinatorial bids

In the auction for 450 MHz frequencies, the Telekom-Control Commission employed a combinatorial sealed-bid procedure for the first time. In the course of the auction, the bidders were allowed to submit bids for individual frequency packets as well as "package bids" for combinations of frequency packets. The applicants were required to submit their bids for frequency packets along with their applications, after which the bids could no longer be altered.

A milestone in broadband service provision

These frequencies, which were previously used for the analog C-Network in Austria, display propagation characteristics which are especially favorable for service provision in rural areas. The technologies which can be used in this frequency range will allow transmission speeds of 1 MBit/s and higher. For this reason, in the relevant terms of use and coverage requirements, the Commission focused on the coverage of rural areas with mobile broadband wireless access (MBWA) technologies.