Second Austrian 5G auction ends with prospect of substantial improvements in coverage

The second auction of 5G spectrum in Austria, covering the 700, 1500 and 2100 MHz bands concluded with total revenues of EUR 202 million and the promise of substantial improvements in the availability of broadband services in rural areas. The auction ran over four stages – two stages using a SMRA-Clock-Hybrid format for the assignment of bandwidth in the 700 and 2100 MHz band and the 1500 MHz band respectively, a sealed bid stage for the assignment of specific frequencies, and a reverse auction for the assignment of additional coverage obligations.

The spectrum in the 700 MHz band was linked to obligations to cover 900 out of 2100 local communities (Katastralgemeinden) that had been identified by the Austrian telecoms regulator RTR as lacking adequate broadband access. In addition, bidders could commit to cover further communities in exchange for a discount on their spectrum fees in the fourth stage of the auction process. In this stage, winners of spectrum took on obligation to cover more than 800 of the remaining 1200 communities for a reduction in spectrum fees of around EUR 87m.

DotEcon supported RTR in the design and implementation of the auction process.

More information about the auction can be found on RTR’s website.

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