Ziggo and UPC pull out of LTE auction

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.