PwC: Increased expectations of the UK 4G auction.

By Rob Starr, Content Manager, Big4.com

The announcement of the results of the spectrum auction in the Netherlands increases expectations of the UK 4G auction and has brought several comments from Brian Potterill, director in PwC’s telecoms strategy team.

“The results of the spectrum auction in the Netherlands were announced late on Friday (14 December), raising a total of €3.8bn. As with the recent auction in Ireland which raised €855m the Dutch auction included more spectrum than on offer in the UK’s 4G auction so is not directly comparable, but does suggest the UK prices will be towards the high end of expectations,” he said. “The high prices in the Netherlands were caused by the government setting aside some of the most valuable 800MHz spectrum for a 4th operator. This created a squeeze which drove up prices.”

Potterill  also said the UK 4G auction is designed to ensure that a 4th operator can get a credible portfolio of spectrum but doesn’t specifically set aside the valuable 800MHz, so it is unlikely that there will be the same squeezed conditions from the larger operators. However, the Netherlands result adds to the sense that mobile spectrum is increasing in value as demand for Smartphones grows.