To the Norwegian PM

Discount in auction price for high-speed broadband in rural areas

The assignment of the 2.6 GHz and the 3.6 GHz bands is an important step towards the government goal of high-speed broadband being made available to all households and businesses in Norway. A discount in auction price was available to bidders that commit to providing broadband services with download capacity of at least 100 Mbps in rural areas. Altibox, Telia and Telenor chose to accept this commitment, and will receive a total discount of NOK 480 000 000.

Furthermore, winning bidders will be required to provide 5G services in the 3.6 GHz band to industry and other relevant verticals.

Clock auction in three stages

The auction started on Monday September 27 and consisted of three stages. In the first stage, the amount of bandwidth assigned to each bidder was decided by a clock auction that lasted for 33 rounds. Following the conclusion of the clock auction, placement in the spectrum bands was decided in a sealed-bid round based on opportunity cost. After the conclusion of the second stage one bidder had to pay for placement. In the final stage, bidders were given an opportunity to provide high-speed broadband in rural areas with less than 100 Mbps download capacity, in return for a discount in the auction price.

Please see Nkom’s webpage (Norwegian only) for more information regarding the auction process.

Amount of spectrum assigned

All available spectrum was assigned, i.e., 190 MHz in the 2.6 GHz band and 400 MHz in the 3.6 GHz band.

Auction prices

 

Auction price for Altibox AS:

TDD-lot (50 MHz) in the 2.6 GHz band NOK
Price for bandwidth: 52 500 000
100 MHz in the 3.6 GHz band  
Price for bandwidth: 780 946 000
Price for placement: 11 036 000
Total price 844 482 000
Total price after reduction 724 482 000


Auction price for Ice Communication Norge AS:

80 MHz in the 3.6 GHz band: NOK
Price for bandwidth:  553 964 000
Total price:  553 964 000

 

Auction price for Telia Norge AS:

2 x 30 MHz in the 2.6 GHz band: NOK
Price for bandwidth: 289 404 000
100 MHz in the 3.6 GHz band:  
Price for bandwidth: 780 946 000
Total price: 1 070 350 000
Total price after reduction: 910 350 000

 

Auction price for Telenor Norge AS:

2 x 40 MHz in the 2.6 GHz band NOK
Price for bandwidth:  415 888 000
120 MHz in the 3.6 GHz band:    
Price for bandwidth:  1 007 928 000
Total price: 1 423 816 000
Total price after reduction: 1 223 816 000

Winning bidders may choose between the following payment options for the auction price:

  • Winning bidders may pay the auction price immediately following the auction.
  • Winning bidders may pay the auction price in instalments over 5 years without interest.
  • Winning bidders may pay the auction price over a period of 20 years, at an interest of 6 %.

 

Results of the auction

 

Innplassering 26.JPG
Figure 1: Final assignment in the 2,6 GHz band

 

Innplassering 36.JPG
Figure 2: Final assignment in the 3.6 GHz band