Please enable javascript in your browser to view this site

Dutch 5G auction raises €1.23bn

KPN, VodafoneZiggo and T-Mobile acquired spectrum across the 700MHz, 1.4GHz, and 2.1GHz bands.

An auction postponed due to COVID-19: In December 2019, the Dutch Government announced its intention to award spectrum in the 1400MHz, 1.4GHz, and 2.1GHz bands. The auction was initially planned for May 2020, but postponed to 29 June 2020 due to COVID-19. On 21 July 2020, the national spectrum agency Agentschap Telecom declared the end of the auction.

A fairly even allocation of frequencies: The three main operators all obtained spectrum in the auction. In the 700MHz band, KPN, T-Mobile, and VodafoneZiggo each obtained 2x10MHz. In the 1.4GHz band, KPN and VodafoneZiggo each obtained 15MHz TDD, whereas T-Mobile acquired 10MHz TDD. In the 2.1GHz band, each of the three operators acquired 2x20MHz. Lots in the 1.4GHz band were the most contested, with a bidding war that brought the total for that band to €267m, compared to the reserve price of €251.9m. The total proceeds of the auction amounted to €1.23bn. 

All licences are subject to coverage requirements: Within two years, operators will have to cover 751km2 in the 700MHz band, 74km2 in the 1.4GHz band, and 55km2 in the 2.1GHz band. Within five years, this will rise respectively to 7512km2, 734km2, and 550km2. Having all acquired 2x10MHz in the 700MHz band, operators are subject to an additional obligation to cover at least 98% of each municipality within two years.

The 3.5GHz band will be awarded in 2022: The licences in the 700MHz and 1.4GHz bands take effect immediately. The licenses in the 2.1GHz band will take effect in early 2021, after expiry of the current licences and the transition licenses. The Dutch Government plans to auction more 5G spectrum in the 3.5GHz band in early 2022.