France Sets 5G Starting Price at €2.2 Billion

France Sets 5G Starting Price at €2.2 Billion
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France plans to sell each operator in the country 50MHz of 5G spectrum for €350 million and then auction a further 11 lots with a minimum price of €70 million each. The country’s secretary of state to the minister of economy and finance Agnes Pannier-Runacher called the proposed sums “reasonable“.

However, in an interview with Le Figaro, president of French regulator Arcep, Sebastien Soriano, said the minimum price for the complete allocation should be set at the much lower rate of €1.5 billion. The government will make the final decision, with Arcep only asked to provide recommendations. The auction is expected to take place in April 2020.

According to the plan, existing mobile operators will be allowed to buy a licence for 50MHz of 5G suitable spectrum for €350 million in return for agreeing to commitments around coverage and availability. The remaining 110MHz on offer will be put forward to the auction.

During her interview, Pannier-Runacher said the fixed price was set at a “very attractive“ price, noting in the German 5G spectrum auction operators had to pay twice as much for the same amount. She added the coverage commitments would be “much more ambitious than in other countries“.