Source: EURLEX
Language: en
Format: md

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# 91998E1856

**WRITTEN QUESTION No. 1856/98 by W.G. van VELZEN to the Commission. Auctioning of mobile telephone frequencies** 
  
*Official Journal C 050 , 22/02/1999 P. 0107*

  

WRITTEN QUESTION P-1856/98

by W.G. van Velzen (PPE) to the Commission

(5 June 1998)

Subject: Auctioning of mobile telephone frequencies

On 19 May 1998, in an interview with the "Financieel Dagblad" newspaper, the Director-General of the Post and Telecommunications Department of the Netherlands Ministry of Transport and Public Works said that, within two years, the Netherlands Government would be selling UMTS frequencies to the highest bidder. Auctioning has advantages and disadvantages. It is a useful method for distributing goods which are scarce, and it brings in a lot of money for the government. The disadvantages are that it reduces the innovative power and the investment capacity of undertakings, particularly in a market such as the telecommunications market which is growing so strongly and where competition is so fierce.

1. Is the Commission aware that the Netherlands Government is planning to sell UMTS frequencies to the highest bidder within two years?

2. Is it prepared to carry out a study into the advantages and disadvantages of auctioning as an instrument for distributing goods which are scarce, and is it prepared to publish the results of that study before Member States start to sell UMTS frequencies to the highest bidder?

Answer given by Mr Bangemann on behalf of the Commission

(8 July 1998)

The subject of auctions in the telecommunications sector as an instrument to distribute scarce resources has been addressed in a considerable number of academic and consultancy studies carried out on behalf of individual administrations and companies. Currently, the Commission is analysing whether all necessary information is provided by the existing studies. The need for a further study in this field will have to be examined in the light of this analysis.

The use of auctions will be addressed in a forthcoming communication from the Commission to the Parliament and Council on spectrum policy, to be published in the second half of 1998. The communication will be followed by a public consultation period in which interested parties can express their views on the subject matter, including the use of auctions. Particular regard will be given in this respect to the question to what extent the revenue raised through auctions is used to contribute to the efficient use of radio frequencies and to foster the development of innovative services and competition.

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