Mobile operators pay €855 million in auction for new spectrum space

By Gavan Reilly

Image: Polryaz via Shutterstock

15/11/12 6,109 Views 26 Comments

IRELAND’S FOUR MOBILE phone operators are to pay almost €855 million to rent new space in Ireland’s communications spectrum – including sufficient space to offer high-speed mobile broadband coverage to most Irish users.

The four operators – Vodafone, o2, Meteor and 3 – have paid €482 million up front, and will pay the remainder in annual instalments until 2030.

Ireland’s communications regulator ComReg, announcing the results of the auction, said the remaining €373 million would be adjusted for inflation.

Space at three spectrum bands – at 800 MHz, 900 MHz and 1800 MHz – was sold in the auction. The space in the former 800 MHz band only became available through the closure of analogue TV broadcasts last month.

All three of the spectrum bands are considered suitable for the provision of mobile services as they have a broad geographical coverage and can penetrate walls.

ComReg said the release of 140 MHz of ‘paired spectrum’ (space to carry data both to and from mobile devices) more than doubled the space currently assigned to high-data bands, meaning operators could “usher in a new era of advanced wireless services including fast, high capacity mobile broadband”.

Ready for the ‘next generation’

Its chairman Alex Chisholm said the award of the licences was “a vital step that promotes competition and allows the next generation of advanced mobile services to be made available to Irish consumers and businesses from next year”.

He added that the spectrum being provided to operators was “being provided in a technology-neutral manner and will allow winning operators to provide innovative services using the latest mobile technologies, including LTE” – the formal name for high-speed mobile broadband services.

The rules of the auction require operators to use the networks to cater to at least 70 per cent of the population, and to reach this target within three years. Operators will also be required to limit any network downtime to less than 35 minutes in any six-month period.

The first €482 million sum is payable to ComReg on demand; the regulator will then forward the funds to the Exchequer.

Vodafone has paid the most for its share of the spectrum; its upfront contribution is almost €161 million, while Meteor’s is €145 million. O2 will pay just under €125 million, while 3 will pay just over €51 million up front.

Read: What are they doing with that analogue space?

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Comments (11 Comments)
Order: Popularity

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Bilbo Baggins 15/11/12 Comment reported, thank you Report this comment
Ah ffs Why are so many of the comments on here turning negative on every single story. This will bring us into the next generation of data speeds country wide. and too boot it gives the government cash, as previously mentioned could be used to fund a new national children’s hospital.
if people don’t start to think and act more positively we’ll never get out of this hole we’re in.

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  Tony Skillington 15/11/12 Comment reported, thank you Report this comment
  People are immensely angry Bilbo at the way the government have let us down. Indeed this and he lower cost of borrowing are good news stories but without getting out to protest, people need to vent somewhere. Better here than hurling rocks at policemen though.
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  FartBox 15/11/12 Comment reported, thank you Report this comment
  but they haven’t let is down…
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  ken-d 15/11/12 Comment reported, thank you Report this comment
  You’re right,but there’s no way on this earth they’ll spend it on a hospital or schools,hate to say it,but a lot of it will be wasted on advisers and pr projects plus consultons fee’s and by the time they go to do anything with it,there’ll be nought left
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Éamundo 15/11/12 Comment reported, thank you Report this comment
Fantastic! That’ll should pay for the new National Children’s Hospital… When can we expect the networks to launch the rollout of 4G?

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  Not Eric R 15/11/12 Comment reported, thank you Report this comment
  I didn’t realise mobile carriers were responsible for building children’s hospitals! Is that why there’s been such confusion over sites?
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Ronan Sexton 15/11/12 Comment reported, thank you Report this comment
Excellent news.

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  Tony Skillington 15/11/12 Comment reported, thank you Report this comment
  They should use these funds to roll out high speed broadband around the country. It would be an investment in the country’s infrastructure that will pay off.
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Pat Kirwan 15/11/12 Comment reported, thank you Report this comment
Maybe the operators should sort out the current problems of dropping coverage.

You listening Vodafone?

How am I supposed to update my status on the motorway when I’ve no coverage!!

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Niall Power 15/11/12 Comment reported, thank you Report this comment
Who will ultimately pay this €855 million fee? the punters will!
this is just another form of indirect taxation.
To all the techies who are SO excited about the POSSIBLE download speeds,
get over yourselves its mobile internet its not a cure for cancer??

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  Niall Gallagher 15/11/12 Comment reported, thank you Report this comment
  Ridiculous. 400m + is being forked over to the exchequer this month courtesy of telecoms announced today. They’re investing those astonishing amount of money in order to increase their customer bases by providing a higher level of customer service. Thus becoming more profitable and furthering their stability in Ireland (jobs, heavier investments, better services for our country). If you don’t want the service, don’t get it and get back under that bridge.
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  Niall Power 15/11/12 Comment reported, thank you Report this comment
  How do you increase your customer base in a market that is no longer growing?
  prices will go up that’s for certain!
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David Spiller 15/11/12 Comment reported, thank you Report this comment
How much did the change over cost? And if its less than what is going to be given what will be done with the difference?

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Larry Sneeg 15/11/12 Comment reported, thank you Report this comment
Money raised from sale has gone straight to the Troika as agreed,

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Arbitrasure 15/11/12 Comment reported, thank you Report this comment
A good day for the bondholders indeed.

Yields are down on Irish debt AND we’ve just raised enough money to pay the next coupon!

Trade of the century for those who bought up the bonds when there seemed a chance the banks might default.

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Dave McFadden 15/11/12 Comment reported, thank you Report this comment
Penetrate walls, sounds healthy for the body that …

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Alan mulvey 15/11/12 Comment reported, thank you Report this comment
bigger bills for us on the way so

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  Ronan Sexton 15/11/12 Comment reported, thank you Report this comment
  Why?
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  FartBox 15/11/12 Comment reported, thank you Report this comment
  higher speeds more like… 4g here we come…
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  Alan mulvey 15/11/12 Comment reported, thank you Report this comment
  http://www.independent.ie/national-news/4g-on-mobiles-to-cost-an-extra-75-3258927.html
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  LeeKelly 15/11/12 Comment reported, thank you Report this comment
  Yeh the milk is running dry on the 3G cashcow. Bring in the 4G fattened calf and hike the prices and round up on the way.
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Philip O'Rourke. 15/11/12 Comment reported, thank you Report this comment
Resulting in many of Ireland’s poorer having to buy new equipment in order to watch TV. The better-off already had the most up-to-date equipment.

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  Jake Behan 15/11/12 Comment reported, thank you Report this comment
  I’m sure they said the same thing when they started building roads and motorways.
  
  Progress comes at a price. But it’s worth every penny.
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  Shit you not 15/11/12 Comment reported, thank you Report this comment
  What story were you reading??
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  Philip O'Rourke. 15/11/12 Comment reported, thank you Report this comment
  The story I read was that the 800mhz only became available by the closure of the analogue TV signal.
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  Shit you not 15/11/12 Comment reported, thank you Report this comment
  Yeah, because an obsolete system was replaced with a more efficient, higher quality, higher capacity that offers more channels for less money and power. Ireland’s digital television system is one of the best in Europe. To continue to service and replace the old analogue system would have cost too much money resulting in an unreliable service. In order to receive this system people were expected to spend on average of about 50euro. The existing antenna systems are sufficient as its broadcast on the existing UHF band as the analogue. For this 50euro you have HD pictures and extra channels all in high quality. Now in saying all of this, were legally obliged by the EU to shut off our analogue TV services by 2012 so it was not a choice really. Can you tell me this, in the 70′s when the rest of the world were moving to colour TV, should we have stayed B&W?