Ziggo and UPC pull out of LTE auction

December 17, 2012 09.19 Europe/London By Robert Briel

Dutch cable operators Ziggo and UPC have pulled out of the LTE spectrum auction because the price was getting too high.

The two cablers formed a joint venture to bid for one of the four LTE licences in the 800 MHz spectrum range earmarked for high-speed data traffic.

KPN, Vodafone, T-Mobile and Tele 2 each secured a licence. Total revenue for the four lots is 3.8 billion with newcomer Tele 2 paying 160 million for its licence.

Ziggo and UPC said in a joint statement that the price was getting too high for them to make a profitable business.

They also said the current Wi-Fi hit spot roll-out (from Ziggo), the existing MVNO agreements and the 2.6 GHz licence owned by the JV should provide enough opportunities to offer wireless broadband services to its customers.