The Value of Renewing Mobile Licences – Update: Results of the Auction and Renewal Charges

The auction of mobile communication frequencies (the multiband auction) was completed on 14 December 2012. The spectrum being distributed included the current licences for the 900 and 1800 MHz bands, which were due to expire on 25 February 2013. As the mobile network operators, depending on the results of the auction, might need time to transition to the new licences, the Minister of Economic Affairs, Agriculture and Innovation decided in 2012 to allow the current 900 and 1800 MHz-band licences to be renewed on application.

Under the regulatory framework in force a licence-holder is required to pay a charge to the State on renewing a licence. This report examines how to value the renewal within the policy and procedural constraints and then determines the renewal price. The results of the multiband auction play a pivotal role here. The system developed provided the basis for the ministerial regulation laying down the renewal charge (‘eenmalig bedrag’).

Given the results of the auction, which suggest that the technical transition will be relatively limited, the licence-holders have meanwhile entered into a covenant which means that renewal for the transition will not be necessary. Agentschap Telecom played a facilitating role here.