Polkomtel has ceased bidding in Poland’s ongoing 800-MHz spectrum auction, warning that the process could bring imbalance and a distortion of competition to the market.
In a statement issued earlier this week, the Polish telco reiterated its opinion that the market would benefit from having one or two LTE networks shared by multiple parties.
However, as it stands, the auction could yield a number of scenarios that would leave Polkomtel at a disadvantage, if it keeps bidding for spectrum. These include the possibility that the local units of Orange and T-Mobile could pool spectrum resources, allowing them to roll out a faster network while leaving others, with smaller amounts of spectrum, struggling to compete with their own LTE infrastructure.
As such, it is stepping back from the bidding with a view to tying up with other market players to gain access to the 800 MHz band.
"Polkomtel is of the opinion that cooperation between operators is the best solution for the market and for customers and counts on the auction finally leading to [the] emergence of one or two equivalent LTE networks," the operator said in a statement.
"However, Polkomtel does not want to participate in [the] fulfilment of scenarios which could frustrate the chance of assuring a competitive balance," it added. "Polkomtel has decided to move to passive bidding and thus to create an opportunity for other operators to bring about a situation in which it will become possible to offer high speed Internet access to Poles – at best by one, joint LTE network."
Polkomtel has already secured access to some 800 MHz spectrum via a complex series of arrangements with Midas Group, in which it indirectly holds shares, and Sferia, a company that already has the rights to 5 MHz of 800 MHz frequencies. Midas Group is rolling out an LTE network in the 800 MHz band and ultimately plans to deploy 5,000 base stations.
It is keen to work with other players as well.
"Polkomtel would like to declare clearly that [it] is ready to cooperate on peer-based and non-discriminatory principles with all the parties who will acquire spectrum in [the] 800 MHz band," it said.
"Thus, Polkomtel would like to invite future holders of 800 MHz band [spectrum], including in particular P4, NetNet and Hubb Investments (Emitel group), to cooperate in the rollout of a network using 15 MHz of bandwidth together with Midas Group," it added.
Poland is auctioning off five 10 MHz blocks of 800 MHz spectrum at present.
Six companies are taking part in the process: existing mobile operators Orange, T-Mobile, Polkomtel and P4, as well as Hubb Investments and NetNet.
As of Wednesday, bids for the five 800 MHz blocks had reached 1.82 billion zloty (€439 million), according to data published by regulatory body the Office of Electronic Communications.
Poland’s 2.6 GHz auction, which is taking place simultaneously, had attracted PLN388.78 million (€94 million) worth of bids by the same date.
