European spectrum revenues to reach €20 billion

11 January 2012 |


According to research from KPMG, spectrum auction revenues across Europe could reach €20 billion between 2011 and 2015. It is estimated that more spectrum will be auctioned in Europe over the next three to four years than has already been auctioned over the past decade. This represents a significant investment for operators and does not include the additional capital expenditure that will be required to roll-out LTE networks.

A minimum of two thirds of auction proceeds are expected to come from switching from analogue to digital television in Western Europe, freeing up the 700/800MHz band. Benoit Reillier, director of KPMG’s economics and regulation practice, explained: “Mobile operators need to understand the policies and mechanisms put in place by their country’s government and regulator for the allocation of spectrum since the way the auctions are designed will have a critical impact on prices. The question of the affordability of spectrum is critical.”