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Czech Republic: Merger restrictions keep PPF out of mobile spectrum auction

By  |  September 30, 2013

Mobile operator PPF Group has decided it will not participate in the government’s 4G wireless spectrum auction due to merger restrictions for bidders, say reports.

The frequency auction has barred participants from merging with rivals for the next 15 years according to a PPF spokesperson. The restrictions are part of efforts to prevent hikes in wireless prices.

According to reports, the Czech Republic endured a failure of a similar auction last March when telco watchdog CTU resolved that bids surpassing $1.05 billion could potentially lead to a spike in wireless prices.

But PPF has called the 15-year merger restrictions “not practically or economically sensible” as the company anticipates major changes in the market following the auction.

Both Telefonica Czech and T-Mobile Czech AS confirmed last week they had registered for the auction.

Full Content: Bloomberg

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