Bids in Germany's 5G auction already top 6 bln euros

Germany's auction of frequencies for fifth-generation mobile services, now into its 10th week, has drawn 6 billion euros ($6.7 billion) in bids so far.

Adds details, background

FRANKFURT, May 23 (Reuters) - Germany's auction of frequencies for fifth-generation mobile services, now into its 10th week, has drawn 6 billion euros ($6.7 billion) in bids so far.

The amount raised in a record 405 auction rounds for the 41 blocks on offer has exceeded forecasts as operators slug it out to secure spectrum to run 'smart' factories and offer super-fast broadband to the home.

Market leader Deutsche Telekom DTEGn.DE has complained that the regulator has forced up prices by offering too little spectrum.

Deutsche Telekom leads in 13 of the blocks, with competitor Vodafone VOD.L ahead in 12 and Telefonica Deutschland O2Dn.DE in eight, according to auction results published by the Federal Network Agency (BNetzA).

New entrant 1&1 Drillisch DRIG.DE, a 'virtual' mobile player controlled by United Internet UTDI.DE, leads in eight blocks, as billionaire CEO Ralf Dommermuth pursues his dream of becoming Germany's fourth operator.

Drillisch, and United Internet, have slashed their dividend payouts to conserve cash so that they can stay in the game.

Industry bosses say that inflated auction costs would undermine their ability to invest the billions needed to build 5G networks - as happened in a pricey spectrum auction in Italy last year.

($1 = 0.8951 euros)

(Reporting by Douglas Busvine and Emma Thomasson; Editing by Susan Fenton)

((douglas.busvine@tr.com; +49 69 7565 1271; Reuters Messaging: douglas.busvine.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More