Czechs axe 4G tender, says bids too high

Mar 08, 2013
Woman looks at mobile phones on display on May 7, 2010 in Prague. The Czech CTU telecommunications watchdog cancels its first auction of 4G mobile frequencies, saying bids were too high, which would mean high consumer costs in the future.

The Czech CTU telecommunications watchdog said Friday it had cancelled its first-ever auction of fourth-generation mobile frequencies, saying the bids it had received were too high and would mean overly high service costs for future consumers.

Offers which topped 20 billion koruna (786 million euros, $1 billion) were "economically unrealistic" as customers would eventually have to pay for it, the CTU said in a statement.

The watchdog received bids from the country's three —Telefonica, T-Mobile and Vodafone—and from PPF , a unit of the Czech financial group PPF.

"The high prices would have a negative impact, leading to excessive fees for high-speed mobile internet," said Pavel Dvorak, chairman of the CTU.

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1 / 5 (1) Mar 09, 2013
Odd, surely the thing to do is ake the highest bid and redistribute any "excess" to reduce the charges of groups that would be otherwise priced out. This would increase usage and so reduce the costs of everyone.
1 / 5 (2) Mar 09, 2013
I'm from Czech Republic too and frankly it just surprises me, someone is giving a shit about telco prices in country, which is economically as significant as Nebrasca state (no offense to Nebrascians - not quite accidentally this state also has the largest per capita population of Czech-Americans among U.S. states)...
1 / 5 (1) Mar 09, 2013
One wonder's why they wanted to auction the spectrum if they were worried about bids being "too high". All a market needs is enough players and competition between them will itself ensure that end-users get the best prices.
Too few players and even if they get spectrum for free the tendency to behave like a monopoly is very real. Surely there must be enough spectrum to support at least 5-6 players.
1 / 5 (1) Mar 09, 2013
Surely there must be enough spectrum to support at least 5-6 players.
Isn't it too expensive to have 5-6 transceivers with signals commuted/interfered instead of 2-3? The plurality gets its own price in small countries.
not rated yet Mar 09, 2013
Good to hear the Czech goverment using their brains on the behalf of the population. Absolutely free competition is not always best for the population or price level.