The controversy surrounding European third-generation (3G) spectrum auctions reached a new peak with Dutch and Italian competition authorities launching investigations in early November into possible collusion between rival bidders. These moves put further pressure on the European Community (EC) to instigate a pan-European probe into the relationships between bidders. The EC said it is following the events, but with no actual evidence of cross-border collusion, it has no reason to investigate. However, the wronged parties are expected to press the EC to make formal inquiries.
Austria
Europe’s fifth auction of Universal Mobile Telecommunications System (UMTS) licenses ended after less than two days of bidding. All six participants gained licenses to operate UMTS systems in Austria, drawing about US$728 million. Each company walked away with two of the 12 available paired licenses for a total of US$607 million. Three participants also purchased additional unpaired spectrum after the auction concluded for US$110 million. Mobilkom Austria paid the most for its spectrum, spending nearly US$104 million on two 2-by-5 megahertz frequency blocks, along with US$43.8 million on additional unpaired spectrum. Other winners included incumbents Connect Austria, Max.mobil and market newcomer Tele.ring. In addition, Spain’s Telef
