These auctions for frequencies in the 700 MHz band should demonstrate the financial ability of telecom operators. Suffice to say that the pockets are deep despite lower prices and higher taxation. According to the World, all the frequency blocks are gone in less than two days, with a total bid exceeding the government’s target.
There would have been finally 10 laps which made it possible to increase the price per block to 466 million euros (against a reserve price of 416 million). Enough to allow the state to pocket 2.8 billion euros against 2.5 expected. They will be used to replenish the defense budget.
Given the current frequencies of each portfolio, BouyguesTel, Numericable-Orange and SFR were not entitled in theory than 10 MHz duplex (2 lots) in 700 MHz, only Free was in a position to compete 15 MHz duplex (3 lots). The challenge is therefore important for Mobile Free which does not have low frequencies.
Finally, according to our colleagues, Orange and Free get two blocks of frequencies, one BouyguesTel and SFR. The first two then sign a check for 932 million euros, 466 million the last two.
Recall that these frequencies in gold, originally intended for digital terrestrial television, will return to
telecom players. The objective is twofold: to feed an industry always looking for spectrum, particularly because of the explosion of the uses of 4G and of course quickly and easily fill the coffers of the state.
Indeed, the 700 Mhz frequency belonging to allow to enter low buildings and disseminate best signal at a greater distance. Suffice to say they are valuable for mobile broadband.