The auction raised €2.79bn for 15-year licences – a price in line with other European countries for the same spectrum.
An award delayed by COVID-19: On 30 September 2020, the French regulator ARCEP concluded the final phase of the award of spectrum for 5G in the 3.4–3.8GHz band. The award was in two stages, the first of which was concluded in February 2020, while the second was postponed due to COVID-19. In the first stage, up to four operators had the right to obtain a 50MHz lot for the reserve price of €350m, in return for coverage commitments. Bouygues, Free, Orange, and SFR each obtained a 50MHz lot.
The second phase concludes: On 2 October 2020, ARCEP completed the auction of the remaining 110MHz. In total, across both phases of the award, operators bid €2.79bn. Bouygues and Free each obtained 70MHz for €602m. Orange paid €854m for 90MHz, and SFR paid €728m for 80MHz of spectrum. The price in relation to the population is €0.13/MHz/pop, in line with that paid by operators in other large European countries for spectrum in the same band. Operators paid £0.12/MHz/pop in the UK, and €0.17/MHz/pop in Germany. The French award was much more expensive than in Spain (€0.05/MHz/pop) but cheaper than in Italy (€0.36/MHz/pop).
One last step before using these airwaves: Before operators can start using this spectrum, ARCEP will hold a ‘positioning’ auction during October 2020, to determine which actual lots each operator will have in the band. Operators will have to fulfil coverage commitments in three stages, covering 10,500 sites by 2025 with 5G services using the 3.4–3.8GHz band. Licences will last 15 years.
