Spectrum cap to cost Danish consumers DKK 3.7 billion if left unchecked

Spectrum cap to cost Danish consumers DKK 3.7 billion if left unchecked

February 22, 2021

Copenhagen Economics has submitted its analysis to 3 Denmark advising on the potential market outcomes if the Danish Energy Agency (ENS) does not change the cap for the spectrum that Denmark’s largest MNO, TDC, can acquire in the upcoming 5G auction.

In the current scenario, our research shows that TDC would be able to increase 5G prices by up to 16 percent, meaning its competitors would have to fight for the remaining customers by engaging in a price war. Ultimately, the Danish consumers would face an average price increase of 3.4% compared to a situation where the cap is changed, which would amount to additional charges totalling DKK 3.7 billion over the coming years.

Read the full article (in Danish)

For more information, please contact Senior Economist Neil Gallagher