Swiss telecom firms criticise billion-franc spectrum auction

Switzerland will reassign 60 percent of its mobile phone frequencies in a new auction expected to raise about one billion Swiss francs, SRF reported. Swisscom, Sunrise and Salt oppose the plan, citing both the high starting prices and the uncertainty of an auction.

The Swiss Federal Communications Commission, known as ComCom, presented details of the allocation in Bern. Its president, Martin Bürki, said a new auction could allow another provider to enter the Swiss market.

Swisscom spokesman Armin Schädeli said the company would have preferred to extend the existing licences. He pointed to Switzerland’s strong mobile coverage, which he said was also linked to the current distribution of frequencies, and said the outcome of an auction was harder to predict.

Sunrise spokesman Rolf Ziebold criticised starting prices that are in some cases considerably higher than those set for the previous auction 15 years ago. He said this would artificially drive up the cost of frequencies, leaving providers with less money to invest in networks, innovation and products.

Bürki rejected the suggestion that the aim was to raise as much money as possible. He said prices had been adjusted because some frequencies were particularly sought after. The federal government will decide which provider receives which frequencies next year.

The impact on customers is expected to remain limited. A new provider is considered unlikely because of the cost of buying frequencies and building a network, while subscription prices are also not expected to change significantly. Mobile operators did not raise subscription prices after previous frequency auctions, according to SRF.