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Austria concludes its second 5G auction

The RTR awarded spectrum in the 700MHz, 1.5GHz, and 2.1GHz bands, with a focus on improving rural coverage.

The second 5G auction in two years: The Austrian regulator RTR completed its first 5G auction in the 3.4–3.8GHz band in March 2019. Following that award, the regulator prepared a second auction across the 700MHz, 1.5GHz, and 2.1GHz bands, with a view to allocating licences until 2044.

All the spectrum was awarded: On 11 September 2020, the RTR announced the end of the auction. All lots across the three bands were awarded, with A1 Telekom securing lots in the 1.5GHz and 2.1GHz bands, and Three and T-Mobile winning spectrum across all bands. The auction raised a total €201.9m, with Telekom, Three, and T-Mobile spending €65.6m, €49.6m, and €86.7m respectively.

A successful mechanism for rural coverage: One noteworthy aspect was a ‘bonus system’ through which the RTR aims to cover more than 900 of the circa 2,000 poorly served areas of the country. The bidders would ‘bid for’ communities to be supplied, and receive a ‘virtual bonus’ in the form of a rebate on the bids placed in stages 1 and 2 of the award. The RTR reports this mechanism was extremely successful, resulting in coverage secured for 802 of the 900 areas.