Operators already feel they are getting a bad deal for this spectrum, further intervention is not sitting well
A difficult process from the outset: The conditions set out by ANACOM for the tender of licences were strongly criticised by the three MNOs. MEO, NOS, and Vodafone all hit out at ANACOM and at the government for failing to recognise their investments and for being too focused on creating favourable conditions for new entrants in the mobile market. So much so, that the operators threatened to desert the auction and filed complaints to the European Commission for alleged state aid.
Four months on, the bidding continues: Despite operators’ belligerent threats, the auction began in November 2020 – but it has dragged on since then. The allocation phase for new entrants ended early in January 2021, but the principal bidding phase continues, having reached 65 days and more than 350 rounds of bidding. Operators have widely made use of the lowest increment possible in each round (1%) resulting in prices moving very slowly.
ANACOM wants to speed things up: This week, ANACOM ran a quick consultation to change the rules of the auction in order to speed it up. ANACOM proposes to reduce auction rounds from 60 to 15 minutes each, and to be able to disallow the lowest price increments (1% and 3%) while continuing to allow increments of 5%, 10%, 15%, and 20%. ANACOM believes these changes would not distort the procedure or undermine operators’ bidding strategies, but they would enable a faster completion of the auction. However, given the circumstances in which the auction is taking place, MNOs already think they are getting a bad deal, and have already voiced their concern about ANACOM’s plans, noting that changing the rules while the auction is ongoing is ‘disrespectful’ and amounts to a desperate attempt to make up for previous mistakes.
Source: https://www.anacom.pt/render.jsp?contentId=1614321&languageId=1
