Thursday, September 29, 2011

WIND Awarded 800MHz and 2600MHz Spectrum in Italy

WIND Telecomunicazioni S.p.A., which is a division of VimpleCom, successfully bid for spectrum in the 800MHz and 2600MHz frequencies following the completion of the competitive spectrum auction initiated by the Italian government on August 29, 2011.

Specifically, WIND has been awarded two blocks FDD (5+5 MHZ paired each) of spectrum in the 800MHz frequency range and four FDD (5+5 MHz paired) blocks in the 2,600MHz frequency range for a total consideration of EUR 1,120 million. WIND will be required to pay an amount of approximately EUR 682 million within 30 days from the completion of the auction while the remaining amount of approximately EUR 438 million will be payable over five yearly installments.

The first spectrum payment will be funded by a combination of cash on hand and draw down under a EUR 600 million bridge loan facility available to WIND and provided by a group of leading international banks.

The 2,600MHz spectrum will be available immediately whereas the 800MHz spectrum will be available for use by the awardees at the beginning of 2013 and both will have a validity until 2029.

WIND said it is planning to launch LTE service.

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