Spectrum Auctions and Fourth Mobile Licenses in CEE: Boon or Folly?

Table of Contents
IDC Opinion
In This Insight
Situation Overview
Overview of CEE Mobile Telecommunications Market Structures
Status of Fourth Mobile Operators and Licenses in CEE
Rationales for Opening Markets to Fourth Operators
CEE NRAs Want to Increase Competition in Their Markets
License Auctions Bring in Revenue
Challenges Facing Auctions and Fourth Mobile Operator Licenses
Size of Markets
Already High Penetration Rates in CEE
New Entrants Face Barriers to Entry
Lack of Success of MVNOs in CEE
Case Studies: Fourth Mobile Operators in Poland and the Czech Republic
Play: A Successful Fourth Entrant to the Polish Market
U:fon: An Unclear Vision for a Potential Fourth Mobile Operator in the Czech Republic
Future Outlook
Advice for Regulators
Be Realistic About Revenue Prospects
Use Auctions to Increase Competition, Whether Via a New Entrant or Improved Incumbent
Work with Fourth Mobile Operators
Consider Whether MVNOs Are a Better Choice
Cancel or Postpone Unfavorable Auctions
Advice for Operators and Other Bidders
Carefully Value Spectrum and Fourth Licenses
Strategize According to Position as a New Entrant
Utilize Changing Mobile Market Structures for Advantages
Consider Partnering with Incumbents
Cooperate with Alternative ISPs to Bundle Services
Consider Lessons from Free in France
Learn More
Related Research
Table: CEE Country Mobile Voice Market Structures, Yearend 2010 (% of Total Mobile Voice Connections)
Table: Fourth Mobile Operators and Fourth Mobile License Auctions in CEE by Country
Figure: Mobile Voice Penetration Rates in CEE, 2011
Figure: Polish Mobile Voice Market by Mobile Operator, 2002–2010