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Sweden’s much-delayed auction of 3.5 GHz and 2.3 GHz frequencies, once it started, ended in a flash. The auction started yesterday and ended yesterday, raising nearly 2.32 billion Swedish kronor ($ 277 million) for the Swedish Treasury.
Incumbent Telia spent the most, spending SEK 760.3 million ($ 91 million) for a 120 MHz block of 3.5 GHz 5G-compatible frequencies (the other bidders got 100 MHz each) . All 3.5 GHz licenses are valid for 25 years. Teracom was the only bidding entity to obtain 2.3 GHz frequencies. The radio and television broadcaster paid SEK 400 million ($ 47.8 million) for an 80 MHz spectrum slice in this band.
Table 1: Sweden 5G auctions
Tenderer | Licenses in the 3.5 GHz band | Licenses in the 2.3 GHz band | Auction proceeds (SEK) |
Hi3G Access | 3400 to 3500 MHz | ?? | 491,250,000 |
Net4Mobility | 3620 to 3720 MHz | ?? | 665,500,000 |
Telia Sweden | 3500 to 3620 MHz | ?? | 760 250 006 |
Teracom | ?? | 2300 to 2380 MHz | 400,000,000 |
Post-Huawei world
Since the Swedish regulator PTS is ultimately successful, the winning bidders cannot use Huawei’s equipment for the new 5G installations. Mobile network operators must also phase out the Huawei kit by 2025.
Tele2 released a statement after Net4Mobility, its joint venture with Telenor, captured 100 MHz in the 3.5 GHz frequency band. He pointed out that Net4Mobility had chosen Ericsson and Nokia as partners for the rollout of their joint 5G RAN nationwide. When combined with the 700 MHz frequencies won in a 2018 auction, Tele2 and Telenor believe they are in a good position to roll out a 5G network nationwide.
Net4Mobility has a lot of exchange work to do, however. So far, the joint venture has relied exclusively on Huawei in the RAN.
Light reading.
For its part, Telia Company claims that Nokia is its “sole supplier” of autonomous 5G core network products in six of its markets, including Sweden, while Ericsson is a national supplier of 5G RAN.
In a previous announcement, the company said it didn’t expect a Huawei ban in Sweden to “materially change” its total capex forecast for the already planned 5G rollout and network modernization.
Hi3G Access, 60% owned by Hong Kong-based CK Hutchison and 40% by a Swedish investor, would use a mix of Huawei and ZTE equipment in its RAN. Light Reading is not clear on the operator’s supplier sourcing strategy going forward.
?? Ken Wieland, Editor-in-Chief, Special for Light Reading
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