Release from 07.03.2019

A1 Telekom Austria Group acquires spectrum for EUR 64.3 mn in the Austrian 3.5 GHz band

Today, the A1 Telekom Austria Group (VSE: TKA, OTC US: TKAGY) informs that the Austrian spectrum auction for the 3.5 GHz band (39 blocks with 10 MHz auctioned) has been concluded. A1 Telekom Austria Group’s domestic subsidiary A1 Telekom Austria AG acquired, depending on the region, 100-140 MHz for a total amount of EUR 64.3 mn. This corresponds to EUR 0.063/MHz/population. The auctioned frequency bands will be used for the new 5G network and capacity expansions of the existing mobile network.

3.5 GHz as a 5G pioneer band

With the result of this spectrum auction, the A1 Telekom Austria Group is well prepared for the commercial launch of 5G. Amongst others, 5G is expected to increase the capacity of mobile networks by a factor of 25, for example. In the 3.5 GHz band, eMBB (enhanced mobile broadband) is a particularly important application case.

Auction design

The auction was in the form of a simple clock auction. A total of 390 MHz frequencies, ranging from 3410 MHz to 3800 MHz, were auctioned. The available frequencies were auctioned on a regional basis (12 regions, thereof 6 urban and 6 rural), divided into blocks of 10 MHz each.

Spectrum distribution

The A1 Telekom Austria AG auctioned frequencies in all regions, whereas the number ranges from 100 – 140 Mhz depending on the region.

Subsequent to the auction, the 3.5 GHz spectrum in Austria will be allocated as follows:

  Acquired spectrum
in MHz
Share of the allocated
spectrum
 Duration
 A1 Telekom Austria  100-140  ~29%  January 1, 2020 –
December 31, 2039
 Hutchison 3G Austria  100  ~25%  As of notification –
December 31, 2039
 T-Mobile Austria  110  ~28%  As of notification –
December 31, 2039












Additionally, four regional providers acquired frequencies in selected regions.

The licensing period for the band 42 (3.4-3.6 GHz) starts at January 1, 2020 and is valid until December 31, 2039 while the licence in the band 43 (3.6-3.8 GHz) can be used from the date of the frequency allocation decision until December 31, 2039.

Payment deadline and funding

The purchase price of the spectrum will be payable within 4 weeks after the notification of the frequency allocation decision. The A1 Telekom Austria Group will finance the spectrum acquisition via operational cash flow.


Disclaimer for forward-looking statements:
This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.

Contact

Susanne Aglas-Reindl
Head of Investor Relations
A1 Telekom Austria Group
+43 50 664 39420
susanne.reindl@a1.group

(. )

Measures Size
Original x
Medium 1200 x
Small 600 x
Custom x