An auction of fourth-generation (4G) mobile phone frequencies in Austria is being legally challenged by at least two of the three leading telecoms companies in the country.
Hutchison's Whampoa and Deutsche Telekom's T-Mobile Austria are both planning to launch appeals against the auction, that was run by regulator Telekom-Control Commission (TCC), because they felt the conditions of the auction endangered competition and pushed prices up too high.
The third telecoms company who took part in the auction, Telekom Austria, is also due to announce whether they've decided to appeal as well.
The auction of the frequencies took place under blind conditions where the bidding companies did not know the size of their rivals' bid. Although a regulator would try to prevent it, there was also the risk that one party would lose out completely as each company was able to bid for up to 50% of the spectrum that was available. This led to the pressure to put in higher bids as a result of fear of losing out completely. Following the auction, the total amount the telecoms companies collectively have to pay for the next-generation frequencies they placed bids for is two billion euros.
H3G, a brand of Hutchison Whampoa, suffered the worst, winning 18% and also missing out in the re-auction of the the valuable 800 megahertz spectrum that would have improved the competitiveness of the company in remote areas.
Chief Executive of the company Jan Trionow described the auction process as illegal in form and in substance. "Drei (H3G) was considerably harmed," he said in a statement on Tuesday. " To simply accept this would be irresponsible."
Along with T-Mobile Austria, H3G are requesting Austria's constitutional and administrative courts to rule that the auction is put on again but the decision will take up to two years, which means the companies may begin work on the 4G frequencies as they are currently divided.
source: http://austrianindependent.com/news/General_News/2013-11-27/14796/Austrian_telecoms_industry_plans_legal_challenge_against_4G_auction
Hutchison's Whampoa and Deutsche Telekom's T-Mobile Austria are both planning to launch appeals against the auction, that was run by regulator Telekom-Control Commission (TCC), because they felt the conditions of the auction endangered competition and pushed prices up too high.
The third telecoms company who took part in the auction, Telekom Austria, is also due to announce whether they've decided to appeal as well.
The auction of the frequencies took place under blind conditions where the bidding companies did not know the size of their rivals' bid. Although a regulator would try to prevent it, there was also the risk that one party would lose out completely as each company was able to bid for up to 50% of the spectrum that was available. This led to the pressure to put in higher bids as a result of fear of losing out completely. Following the auction, the total amount the telecoms companies collectively have to pay for the next-generation frequencies they placed bids for is two billion euros.
H3G, a brand of Hutchison Whampoa, suffered the worst, winning 18% and also missing out in the re-auction of the the valuable 800 megahertz spectrum that would have improved the competitiveness of the company in remote areas.
Chief Executive of the company Jan Trionow described the auction process as illegal in form and in substance. "Drei (H3G) was considerably harmed," he said in a statement on Tuesday. " To simply accept this would be irresponsible."
Along with T-Mobile Austria, H3G are requesting Austria's constitutional and administrative courts to rule that the auction is put on again but the decision will take up to two years, which means the companies may begin work on the 4G frequencies as they are currently divided.
source: http://austrianindependent.com/news/General_News/2013-11-27/14796/Austrian_telecoms_industry_plans_legal_challenge_against_4G_auction
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