On the first day of the auction, ARCEP provided an update for the 5G band with 3.4 to 3.8 GHz. A total of 11 10 MHz frequency blocks are allocated. The four big French operators all decided to bet big from the start on Tuesday, as the unit price for the last round of the day was 85 million euros.
In detail, Orange is starting out very strongly and is positioning itself in such a way that five 10 MHz blocks are received, ie the maximum authorized. SFR and Bouygues Telecom each request three blocks. Finally, Free Mobile brings the stern up with two target blocks. In total, we reach 13 blocks, more than the eleven auctioned off.
A new price of 90 million euros per block
It is therefore clear that no block has been officially assigned and the auctions will not end until the number of blocks requested is at the level of the eleven blocks offered for sale. As a result, hostilities are picking up again as of today and the price of the block block will be set at 90 million euros, according to ARCEP in its press release. This value will increase by three million euros in each round.
This mechanism should therefore bring high returns to the state, but should prevent the bill from being too high for the operators. The latter must actually maintain investment capacities in the networks in the future. The four companies already own a 50 MHz block, which was offered for sale at the beginning of the year at a price of 350 million euros.
As a reminder: The start of 5G is taking place in France in a rather tense climate. Part of the population is hostile to this new technology, and this is especially true of the new green mayors being elected in cities like Lyon and Bordeaux. For its part, the government vigorously defends the use of the new generation of cellular networks.