After EUR 228 mln biggest spend in spectra auction, Vodafone wants to launch 4G in Romania in 2013

Telecom company Vodafone, which recently bought more spectra usage rights in Romania, plans to launch 4G services in Romania at the beginning of 2013. “We are very happy with the results of the telecom auction, which brought us the needed spectra to develop our mobile data strategy, based on LTE technology. Vodafone will be able to launch 4G services at the beginning of 2013 […]. We already obtained a 4G license for testing and we will begin testing in our network in the coming period,” said Inaki Berroeta, CEO Vodafone Romania.

Vodafone paid the highest sum in the recent telecom auction, where the state raised a total of EUR 680 million. Vodafone paid EUR 228 million in the auction, for two blocks in the 800 MHz band, two blocks in the 900 MHz band, six blocks in the 1800 MHz band and a block in the 2600 MHz band, valid from 2014 through 2029. Vodafone Romania also won short-term licenses, eight blocks in the 900 MHz and 1800 MHz bands, valid between January 1, 2013 and April 5, 2014. Its new spectrum portfolio will be 78 percent larger than previously. Cosmote, which spent EUR 179 million on a block in the 800 MHz band, two blocks in the 900 MHz band, five blocks in the 1800 MHz band and two blocks in the 2600 MHz band, valid from 2014 until 2029, said it will also invest in developing its network. Cosmote has increased its spectrum portfolio by 59 percent via the auction. The auction raised a a total of just over EUR 682 million in license fees, due for payment by November 30 this year or June 30 in 2013, depending on the type of license. According to ANCOM, operators in Romania now have 77 percent more spectrum resources available and the way is now clear for companies to develop 4G technology. The reserve price for each block in the four bands was set by Government decision. The minimum price for each block in the 800 MHz assigned for 15 years was EUR 35 million, for the 900 MHz band EUR 40 million, EUR 10 million per block in the 1800 MHz band and EUR 4 million per paired block or EUR 3 million per unpaired block in the 2600 MHz band. For blocks assigned for periods of 15 months, the values were set at EUR 1.7 million in the 900 MHz band and EUR 0.8 million in the 1800 MHz band. Romania will re-direct all the money cashed in this year from selling telecom licenses to agriculture and to helping farmers whose crops were affected by drought. editor@romania-insider.com (photo source: sxc.hu)