German Spectrum Auction Update

8:00 AM -- After the first five days and 35 rounds of Germany's biggest spectrum auction, the bidding totaled €191.4 million (US$258 million).

The highest bidding action was for frequency in the 800MHz band, which is considered to be the most valuable in this auction. E-Plus Mobilfunk GmbH , Deutsche Telekom AG (NYSE: DT), Telefónica O2 Germany GmbH & Co. OHG , and Vodafone Germany have all stepped up their bids for this particular spectrum.

The 800MHz band -- like the 1.8GHz, 2GHz, and 2.6GHz also being auctioned -- is suitable for LTE. It's akin to the 700MHz band in the US that Verizon Wireless will use for its LTE deployment later this year. The 800MHz band is highly sought after in the German auction because it is a lower frequency; and at low frequencies, cellular signals can travel farther, which means operators need fewer base stations to cover greater areas. And fewer cell sites would mean lower deployment costs, in a nutshell.

The auction results are updated each day here on the Bundesnetzagentur (BNetzA) Website.

— Michelle Donegan, European Editor, Light Reading Mobile

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