Comcom: rules for mobile communications auction softened

Now Comcom is allowing Sunrise, Swisscom and Orange to pay the auction price in installments. In the invitation to tender for the auction rules, Comcom had still demanded payment of the entire price within 30 days of the award of the license. According to SDA, the amount was to be paid in one go.
 
In total, the auction of all mobile frequencies brought in an amount of 996.3 million francs. Sunrise has to pay the most: 482 million francs. Swisscom accounts for 360 million francs and Orange for 155 million francs.
 
Tranche payments offered
At the media conference, Comcom President Marc Furrer had already indicated that he would be willing to offer to pay the auction price in installments. On March 2, Sunrise received an offer for staggered payment. It would have to transfer 289 million francs within 30 days of the award of the licenses. That's according to Sunrise's annual report, which was published Thursday. Another 105 million francs would be due by the end of June 2015 and the remaining 110 million francs by the end of 2016.

Criticism of rates
The option for installment payments applies not only to Sunrise, but also to Swisscom and Orange, Furrer said Thursday in an interview with the news agency SDA: "We treat all three providers the same." Orange nevertheless did not react happily. It was astonished that after the conclusion of the auction there was talk of tranche payments and thus the auction rules were subsequently changed materially in favor of Sunrise, spokeswoman Therese Wenger said, according to SDA.

Marc Furrer said that it would also make economic sense to be able to pay part of the price only when the concessions come into force. Then the providers would have the money free for investments in network expansion. However, nothing has been decided yet about the installment payments. The decision will be made when the concessions are issued. That might be the case in a month or two.