The licenses will be auctioned off before the summer vacations. This was announced by Comcom on Friday. The tender will take place in particular in view of the expiry of the current mobile radio licenses, which will become vacant at the end of 2013 and 2016 respectively.
In addition, a further frequency range is available that can be used for mobile communications after analog television transmitted from antenna masts is switched off. And a new generation of mobile communications, Long Term Evolution LTE, which enables much higher transmission speeds, is just around the corner. As Comcom President Marc Furrer told the media in Bern, there is a need for action. This is because the boom in all-rounder cell phones, such as the iPhone, is leading to a doubling of the data volume in the mobile network every eight months. If this capacity is not made available, the network will very quickly reach capacity bottlenecks, Furrer continued. The new allocation of mobile radio frequencies is perhaps the biggest step in the expansion of the mobile network since the GSM licenses were awarded.
In the interests of transparency and equal treatment, the frequency will be awarded in an auction, Comcom also announced. Both the current network operators Orange, Sunrise, Swisscom and the small In&Phone as well as all other interested companies could participate in the tender under the same conditions. In contrast to the past, the number of licenses and the frequency equipment will not be awarded by Comcom, but will in principle be open. This means that telecoms providers can bid for the frequency spectrum that suits their business models.
The early allocation of frequencies and a useful life until the end of 2028 should ensure that companies can plan for the long term. However, the frequencies do not come cheap. If all frequency blocks are sold at the minimum price, over CHF 600 million will flow into the federal coffers, according to calculations by the SDA news agency. The minimum price corresponds to the sum of the annual frequency fees and the costs of the award procedure, said Furrer. The aim is not to flush as much money as possible into the federal coffers, but rather to allocate the frequencies optimally. The aim was not to leave providers without money to invest in infrastructure.
Reactions of the telecom companies
The planned auction for the reallocation of all mobile radio frequencies is not causing undivided joy among all telecommunications companies. While Swisscom and Sunrise have already announced their participation in the auction, Orange wants to analyze the conditions first and comment later. The subsidiary of France Telecom is annoyed that all mobile radio frequencies - including the existing GSM and UMTS frequencies - are going under the hammer. It had argued with the authorities that the existing GSM and UMTS licenses should simply be renewed, whereby the fair allocation of the 900 megahertz spectrum should be continued.
At the request of SDA, Orange announced on Friday that it was of the opinion that only the currently free and the new frequencies should be auctioned. An auction of the existing licenses would strengthen Swisscom, which has much greater financial power. In addition, the money paid to the federal government for the auction would not be available for new products and the expansion of mobile networks, Orange criticizes. In addition, a new tender would jeopardize the investments made in recent years, as there is no certainty that the necessary spectrum for the provision of mobile services could be acquired at auction.
Sunrise criticized the minimum prices set by Comcom for the auction. These were high and ran counter to the aim of offering the cheapest possible mobile services. Nevertheless, the number two in the industry announced its intention to acquire the corresponding blocks in all the necessary frequency bands in order to secure fast mobile broadband connections.
A merger of Orange and Sunrise in the auction, as Comcom President Marc Furrer had suggested as a possibility, is not arousing any enthusiasm among the two Swisscom competitors. This is one option among many, said Sunrise spokesman Roger Schaller. Orange is not averse to joint network solutions with other providers, said spokeswoman Therese Wenger.
Swisscom, for its part, certainly wants to take part in the auction and observe a possible cooperation between Sunrise and Orange, as spokesman Carsten Roetz said: "We welcome the fact that the auction is taking place so early and that the frequencies are being allocated on a technology-neutral basis. Roetz did not want to say anything about the costs.