Results of the Belgian multiband auction of June 2022

BIPT raises EUR 1.20b (reserve price total EUR 431m) from multiband 5G SMRA auction after 46 rounds, valid 20 yr until 400506

Winners to cooperate on spectrum positions by 220705 (final round if no agreement)

1.4 GHz band auction to follow, 3 bidders, total reserve price EUR 46.5m5 winners:

• Citymesh Mobile (Citymesh 51%, RCS&RDS (Digi) 49%; reserved spectrum for newcomer, plans to be MNO #4 for business market, Digi for consumer market) 2x5 in 900, 2x15 in 1800, 2x5 in 2100, 2x5 in 700, 50 in 3600 (total EUR 83.3m). Targets 20% coverage by 2023 allowing national roaming for launch, targets market share 10%.
• Network Research Belgium (= Ethias, for business market) 20 in 3600 (EUR 11.0m)
• Orange BE 2x10 in 900, 2x15 in 1800, 2x15 in 2100, 2x10 in 700, 100 in 3600 (total EUR 322m for 200 MHz; to phase out 3G from mid 2023 to 2025, phase out 2G by end 2028)
• Proximus 2x10 in 900, 2x25 in 1800, 2x25 in 2100, 2x10 in 700, 100 in 3600 (total EUR 491m)
• Telenet 2x10 in 900, 2x20 in 1800, 2x15 in 2100, 2x5 in 700, 100 in 3600 (total EUR 264m)

Structural seperation advancing in telecoms, esp. in Italy

After a bad example in Australia (the NBN debacle), good ones in New-Zealand (Chorus and Spark) and Czech Republic (CETIN, PPF), a formal one in Denmark (TDC NET and Nuuday still in the TDC Holding structure - waiting for Nuuday to be offloaded) and nearly one in the UK (Openreach still in full BT ownership), structural separation may now happen in Italy. Ireland (eir, NBP, SIRO) also looks like a candidate (esp. now that Virgin Media Ireland is becoming a SIRO customer).

Here is what is going on at TIM:

• 21 Nov. 2021: KKR considers a friendly offer of 0.505 EUR/share (equity valuation EUR 10.8b). Net debt was EUR 22.5b.
• 7 and 17 Dec. 2021: Management changes.
• 15 Dec. 2021: Profit warning.
• 26 Jan. 2022: Industrial Plan draft.
• 14 Feb. 2022: Industrial Plan update.
• 2 Mar. 2022: Q4 results and Industrial Plan 2022-2024 (NetCo and ServCo). CVC and Iliad have shown interest in buying a stake in ServCo.
• 4 May 2022: Q1 results, plans Capital Markets Day 7 July.
• 29 May 2022: NetCo (incl. FiberCop) spin-off and Open Fiber merger proposal; NetCo valuation EUR 20b (rumor); CDP Equity to own 70-77%, KKR 12-15%, Macquarie 10-13% (rumor).
• 1 June 2022: Vivendi (24%) objects to valuation (current market cap EUR 5.9b, net debt EUR 17.7b).
• 7 June 2022: 1,200 job cuts by Nov. 2022.
• 20 June 2022: Vivendi demands NetCo valuation of EUR 31b, to take on EUR 10b debt

TO BE UPDATED