Ofcom to consider German auction in setting licence fees

Ofcom said it will use the results from the recent German spectrum auction in calculating the annual licence fees for UK operators.

The German auction, which concluded in June 2015, raised over €5 billion from the sale of spectrum in the 700MHz, 900MHz, 1500MHz and 1800MHz bands. 

"Ofcom considers that this auction provides relevant evidence for the purposes of estimating the market value of the 900MHz and 1800MHz licences in the UK," said the regulator.

The UK watchdog added that it has analysed the results of auctions in European countries since the beginning of 2010, and will now consider Germany in its calculations. 

In addition it will consider the possible effects for the value of 900MHz and 1800MHz spectrum in the UK, taking into consideration factors such as spectrum caps or strategic bidding on the risk of understating or overstating market value. 

Ofcom said stakeholders have until August 7 2015 to comment on how it should take account of the German auction.