700 MHz frequencies that were once used to transmit television channels are now free for teleoperator use in Finland. A spectrum auction will be arranged at the end of the year, says the Finnish Communications Regulatory Authority (FICORA), the auction organizer.
A similar auction was carried out in 2013 for the 800 MHz frequencies, netting 108 million euros. Three years ago, the main winners were the DNA, Elisa and TeliaSonera telecommunications companies, which paid over 30 million euros each for their slice of the pie.
DNA’s managing director Jukka Leinonen says an auction is an effective solution to the puzzle of how to grant frequency ownership.
“There’s nothing wrong with the principle of a spectrum auction. […] There was something wrong with the 800 MHz auction mechanisms, but I’ve understood that those glitches have been cleared up ahead of the 700 MHz auction so the prices won’t see-saw so badly,” he said.
Elisa CEO Veli-Matti Mattila agrees.
“The auction rules are drawn up well, as a rule. My experience is that the opinions of all of the market players are heard and their viewpoints are taken into consideration,” Mattila said.
Russian use a problem
The Ministry of Transport and Communications says the 700 MHz frequency band has been allocated from television broadcasting to wireless broadband use as of 2017. It says the new band can be used cost-effectively for the construction of 4G networks.
Prices for mobile phone networks in Finland are slightly lower than in Central Europe, for example. This has made it possible for the country’s telecommunications companies to build a solid network to support the system. FICORA says it hopes to reach a minimum total of 90 million euros with its year-end auction.
“If frequency prices get markedly higher, it will be more difficult to build good networks and this would slow connections down. In Finland, we have managed this balance very well,“ says DNA’s Leinonen.
Veli-Matti Mattila of Elisa says there is one problem, however: Russia still uses the 700 MHz radio frequencies for its television broadcasts.
“The fact that Russia uses the frequencies will disturb business. You could say that full use of the channel will only begin once the Russian television service abandons the frequency entirely.”