TKK to allocate frequencies in 450 MHz band

Press release dated 25 July 2008

In its session on July 21, 2008, the Telekom-Control Commission (TKK) launched an allocation procedure for mobile communications frequencies in the 450 MHz band. The frequencies were already allocated in the year 2006 but were later returned to the TKK by the licensee. In this procedure, the regulatory authority will auction off one frequency packet which can be used for the purpose of providing mobile communications services or broadband services. The minimum bid in the auction is EUR 350,000.00. Due to the favorable propagation characteristics of the frequencies in question, the regulatory authority expects this allocation to contribute to enhancing broadband coverage in thinly populated areas. Accordingly, the coverage requirements specifically name a number of municipalities in thinly populated areas which must be covered within a period of one and a half years or three years.

Two-stage allocation procedure: Application review and auction

The allocation procedure will consist of two stages. Once all submitted applications have been reviewed for fulfillment of the prerequisites under the Austrian Telecommunications Act and the tender requirements, a first-price sealed-bid auction will follow in the second stage. In this auction procedure, applicants are required to submit their bids along with their applications, and bids can no longer be altered once they have been submitted.

The frequency licenses will remain valid until the end of the year 2023, and the revenues from the auction will go to the Republic of Austria.

Procedure schedule

Applications must be submitted by October 10, 2008; the regulatory authority plans to make a decision in October 2008.

For more detailed information on the frequency allocation procedure, please visit RTR's web site at www.rtr.at/frequenzen.