Danish 800MHz auction completed

The Danish 800MHz auction was completed on June 27th with spectrum going to TDC and TT-Network (a joint venture between Telia and Telenor).  The auction, which had started on June 18th, followed a “Combinatorial Clock Auction” (CCA) format similar to that proposed by Ofcom for the upcoming 4G auction in the UK and used in number of recent European spectrum auctions. The Danish 800MHz CCA format however included an innovative component that allowed bidders to bid for regional exemptions from the coverage obligation imposed on the 800MHz licences.  The auction thus allocated these exemptions together with 800MHz spectrum itself by restricting feasible winning outcomes to those that would ensure that the coverage obligation overall would be met.

The coverage obligation imposed on the 800MHz licensees was aimed at improving access speeds in areas of Denmark worst affected by the lack of high-speed broadband, as identified by post codes.  207 post codes were identified and divided into three regions. The obligation required a mobile broadband service provision allowing users to experience an average download access speed of at least 10 Mbit/s outdoors, but individual bidders bidders in the auction could bid for exemptions in each of these regions where applicable, but the auction outcome ensured that the coverage obligation would be met by at least one winner in each region.

There were three bidders (Hi3G in addition to TDC and TT-Network).  TT-Network won 2x10MHz at the bottom of the band, paying DKK111m for this spectrum and is exempt from the coverage obligation.  TDC won the remaining 2x20MHz and will serve the coverage obligation in all 207 post codes, paying a licence price of DKK628m.

More information about the Danish 800MHz auction can be found on the the website of the Danish Business Authority (DBA).  DotEcon (together with Analysys Mason) advised the DBA on the 800MHz award, and the auction was run on DotEcon’s WebBidder auction platform.

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