Three service providers get frequency space in 5G auction

Noos News

All three Dutch providers have secured frequency space for their 5G network. KPN, VodafoneZiggo and Odido did this in a national auction, raising more than €174 million for the state treasury. This was announced by outgoing Minister of Economic Affairs Adriansen.

The amount is significantly lower than at the first auction four years ago. Then revenues reached 1.23 billion euros, seven times that amount. “This is because the 2020 auction was much more important,” explains a spokesman for the Ministry of Economic Affairs. “That was the beginning of 5G. Then the parties had to get a base frequency.”

The spokesman said the value of the frequencies being auctioned now is far less than it makes sense. “It’s useless without that base frequency.”

Four years ago, the same three providers secured the frequency space. Odido did this at the time under the name T-Mobile.

Faster 5G

Today’s auction concerns frequencies on the so-called 3.5 GHz band, which ensures that service providers are able to provide fast mobile internet to their customers. “Businesses and consumers have been waiting for this moment for a long time,” Minister Adriansen said. “With 5G technology, data can be transmitted faster and more reliably. This helps innovation in healthcare, but also the digitization of processes in the manufacturing industry or logistics, for example.”

Only the three Dutch suppliers participated in the auction. In theory, it was also possible for parties from another country to participate, but that did not happen.

Each participant was allowed to buy no more than 40 percent of the available spectrum, leaving enough room for competition in the telecoms market. Eventually, all providers bought a third station, 100 MHz. The new permits will start this month and run until the end of 2040.

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