Fourth mobile operator buys access to Belgian market

A fourth mobile operator may become active on the Belgian telecoms market. The newcomer has bought frequencies - including 5G - to be able to run a mobile network, telecoms regulator BIPT announced on Tuesday. 

Last week it was announced that there were five candidates (Telenet, Proximus and Orange and two newcomers) for the auction of 2G, 3G, 4G and 5G licences scheduled for June. But to avoid new entrants being outbid by existing players to keep extra competition out of the market, a part of the spectrum can be reserved for a pre-determined price.

One of the two other candidates has now done so. This new entrant "has exercised the option to have at its disposal, subject to payment of EUR 83.34 million, a reserved package of radio spectrum in the different radio frequency bands for both 5G and 2G, 3G and 4G applications", according to BIPT. "This will allow this new mobile operator to enter the Belgian market with an adequate spectrum package." 

No names were mentioned by the regulator. But the two companies seen as the most likely candidates for the licences (alongside the three existing mobile operators) are Citymesh, part of Limburg-based IT group Cegeka, and its Liège competitor NRB, a subsidiary of Ethias. Both focus primarily on the business market, but Citymesh has already said that it does not exclude an expansion to the consumer market. 

The three existing mobile operators - Proximus, Telenet and Orange - have also reserved part of the spectrum, for 73 million euros each. "This will allow them to ensure the continuity of their current services on the mobile market," says BIPT. 

In June, the rest of the spectrum will be auctioned off in packages to the highest bidder. The fifth candidate, who has not yet reserved any frequency bands, will still be able to join the auction. "Of course, all candidates, both existing operators and newcomers, will have the possibility to bid, in addition to the reserved spectrum, on the other lots of the auction for which they have applied," explains the telecoms regulator.

At minimum prices, the sale of the radio frequency bands will generate around 780 million euros. Auctioned licences are valid for twenty years.

© BELGA