The Norwegian 5G auction has concluded
The Norwegian Communications Authority (Nkom) has assigned spectrum licences in the 2.6 GHz and 3.6 GHz bands. Access to these frequencies will be pivotal to the ongoing rollout of 5G, and to the continued evolvement of mobile communications services in Norway. The spectrum was assigned to four operators, with a total price of NOK 3 892 612 000.
Director of The Norwegian Communications Authority, Pål Wien Espen
Foto: Gunstein Myre
Discount in auction price for high-speed broadband in rural areas
The assignment of the 2.6 GHz and the 3.6 GHz bands is an important step towards the government goal of high-speed broadband being made available to all households and businesses in Norway. A discount in auction price was available to bidders that commit to providing broadband services with download capacity of at least 100 Mbps in rural areas. Altibox, Telia and Telenor chose to accept this commitment, and will receive a total discount of NOK 480 000 000.
Furthermore, winning bidders will be required to provide 5G services in the 3.6 GHz band to industry and other relevant verticals.
Clock auction in three stages
The auction started on Monday September 27 and consisted of three stages. In the first stage, the amount of bandwidth assigned to each bidder was decided by a clock auction that lasted for 33 rounds. Following the conclusion of the clock auction, placement in the spectrum bands was decided in a sealed-bid round based on opportunity cost. After the conclusion of the second stage one bidder had to pay for placement. In the final stage, bidders were given an opportunity to provide high-speed broadband in rural areas with less than 100 Mbps download capacity, in return for a discount in the auction price.
Please see Nkom’s webpage (Norwegian only) for more information regarding the auction process.
Amount of spectrum assigned
All available spectrum was assigned, i.e., 190 MHz in the 2.6 GHz band and 400 MHz in the 3.6 GHz band.
Auction prices
Auction price for Altibox AS:
| TDD-lot (50 MHz) in the 2.6 GHz band | NOK |
| Price for bandwidth: | 52 500 000 |
| 100 MHz in the 3.6 GHz band | |
| Price for bandwidth: | 780 946 000 |
| Price for placement: | 11 036 000 |
| Total price | 844 482 000 |
| Total price after reduction | 724 482 000 |
Auction price for Ice Communication Norge AS:
| 80 MHz in the 3.6 GHz band: | NOK |
| Price for bandwidth: | 553 964 000 |
| Total price: | 553 964 000 |
Auction price for Telia Norge AS:
| 2 x 30 MHz in the 2.6 GHz band: | NOK |
| Price for bandwidth: | 289 404 000 |
| 100 MHz in the 3.6 GHz band: | |
| Price for bandwidth: | 780 946 000 |
| Total price: | 1 070 350 000 |
| Total price after reduction: | 910 350 000 |
Auction price for Telenor Norge AS:
| 2 x 40 MHz in the 2.6 GHz band | NOK |
| Price for bandwidth: | 415 888 000 |
| 120 MHz in the 3.6 GHz band: | |
| Price for bandwidth: | 1 007 928 000 |
| Total price: | 1 423 816 000 |
| Total price after reduction: | 1 223 816 000 |
Winning bidders may choose between the following payment options for the auction price:
- Winning bidders may pay the auction price immediately following the auction.
- Winning bidders may pay the auction price in instalments over 5 years without interest.
- Winning bidders may pay the auction price over a period of 20 years, at an interest of 6 %.
Results of the auction
