Telefónica Deutschland secures valuable spectrum in frequency auction

-New frequencies expand network capacity and permit even more powerful high-speed network through LTE
-The acquired spectrum of 60 MHz continues to give Telefónica Deutschland a very comprehensive mobile phone spectrum allocation among Germanys network operators
-CEO Thorsten Dirks: “We have acquired a valuable frequency package that enhances our overall spectrum position for our strategy of becoming the Leading Digital Telco in Germany.”
MUNICH. Telefónica Deutschland secured total spectrum of 60 MHz at the mobile phone frequency auction that came to an end today. The additional frequencies enable the company to expand its high-speed network and its network capacity. This will allow the company to continue offering its customers the best network experience as part of its strategy. The investment in the valuable frequency package represents an important module for ongoing network expansion and the focused data business. Telefónica Deutschland invests 1.198 billion euros in the new frequency ranges. At the frequency auction, Telefónica Deutschland purchased 2 paired blocks in the 700 MHz range, 2 paired blocks at 900 MHz and 2 paired blocks in the 1.8 gigahertz range. The spectrum at 700 MHz and 1.8 GHz will enable the company to further increase the density of LTE provision in major cities and rural areas, in order to provide customers throughout Germany with an even better user experience using mobile data services. The spectrum at 700 MHz from the so-called Digital Dividend 2 supplements frequencies at 800 MHz in rural broadband expansion, which the company purchased in 2010. In addition, the blocks acquired at the auction in the 1800 MHz range permit Telefónica to build up an even more powerful high-speed network and further expand the capacity of the network. This means that customers benefit from significantly higher LTE speeds. The blocks in the 900 megahertz range will continue to safeguard the high quality of the nationwide GSM network for voice, SMS and narrowband Internet connections in the future.

Investments for the best network experience

“We are very satisfied with the result of the auction and have acquired a valuable frequency package. The spectrum enhances our overall spectrum position and represents an integral component for our strategy of becoming the Leading Digital Telco in Germany,” commented Thorsten Dirks, CEO of Telefónica Deutschland. “The frequency spectrum is going to benefit our customers, who will in future enjoy the best network, product and service experience at an attractive price.” “This spectrum investment reinforces the fact that the network experience is a top priority for Telefónica,” emphasised Rachel Empey, CFO of Telefónica Deutschland. “The new frequencies empower us to achieve an efficient expansion of our future-proof and high-quality mobile phone network. Furthermore, this enables us to continue driving forward successful monetisation of data business.”

The frequency spectrum acquired in the course of the auction:

-700 MHz: 2 blocks of 2x5 MHz
-900 MHz: 2 blocks of 2x5 MHz
-1800 MHz: 2 blocks of 2x5 MHz
-Total frequency costs: 1.198 billion euros
After the allocation, the acquired spectrum gives Telefónica Deutschland a total of about 358 MHz of mobile phone spectrum and therefore a strong package compared to the other mobile network operators in Germany. Particularly in the spectrum in frequencies of 1.8 and above, the company has a comprehensive frequency package and can therefore deliver high-speed data services particularly in urban regions. The strong package below 1 GHz permits even better coverage in rural regions for broadband mobile Internet provision. Telefónica Deutschland is therefore making a contribution to the government’s targets of achieving nationwide broadband service.