Dutch Mobile License Bids Rise; Libertel Remains Top Bidder
By Adri den Broeder
Scheveningen, Netherlands, July 7 (Bloomberg) -- Bids in the Netherlands' auction of five new wireless licenses rose on the second day, although Libertel NV's 45 million-euro ($42.6 million) offer remained the highest.
Libertel's bid was unchanged from yesterday. British Telecommunications Plc's Telfort unit had the highest bid for license A, one of the licenses offering a wider frequency, with an offer of 5.54 million euros, up from yesterday's 90,000 euros.
Bids for the other permits were unchanged, meaning the total offer for the five licenses amounted to 51.3 million euros, up from 45.8 million euros. The price only rose on license A, indicating that throughout the 18 rounds today, the companies only bid for that license.
``As long as there is still bidding going on for any of the licenses, the auction is not over,'' said Lilly van Geest, a Transport Ministry spokeswoman.
Analysts doubt the government will gain the 10 billion euros it anticipated. The six bidders yesterday used their right to abstain from three rounds of bidding, during which minimum bid levels were lowered, to force prices down from the initial minimum of 43 million euros.
The U.K. in April raised $34 billion in its auction for five licenses, attracting 13 companies in 150 rounds of bidding. In the Netherlands, the five companies that already own a mobile network are expected to win the licenses. That has deterred new entrants from bidding and will keep the price low, analysts said.
The Netherlands is the second of 14 European countries selling licenses to offer faster Internet access on mobile phones. Some countries have given away the licenses, while France chose to sell its four licenses at a total fixed price of $19 billion.
The Dutch Transport Ministry's auction resumes tomorrow in a hotel in a resort town near The Hague.
The following is a table of today's results from the ministry:
License Highest Bid (Euros) Bidder
A 5,540,000 Telfort Holding NV
B 45,380,000 Libertel NV
C 140,000 Dutchtone Multimedia BV
D 90,000 3G Blue BV
E 180,000 Versatel 3G NV
Total 51,330,000
Dutchtone is majority-owned by France Telecom SA. 3G Blue is a venture of Belgacom, Tele Danmark AS and Deutsche Telekom AG. Versatel 3G is a unit of Versatel Telecom International NV.
All the bidders except Versatel currently own mobile phone networks in the Netherlands. Hutchison Whampoa Ltd., Hong Kong's largest conglomerate, and NTL Inc., the U.K.'s No. 1 cable company, withdrew from the auction shortly before it began.
Licenses A and B are for wider frequencies than the others, meaning the networks can handle more mobile phone calls and wireless Internet traffic.
The Transport Ministry, which is handling the auction, releases results each day after 6 p.m. local time in English and Dutch at www.veilenvanfrequenties.nl. |
