The fourth bidder, 1&1 Drillisch, is a mobile virtual network operator. If a firm acquires spectrum, German regulations stipulate that it must sacrifice its mobile virtual network operator status. The best outcome for Telefonica would be for Drillisch to be priced out of the spectrum auction. But that also puts the onus on Telefonica to keep the auction pricing high enough to make it uneconomical for its rival. It would also be good news in the near term for investors: Dommermuth said last week he would cut the dividend should he win any tranches of the spectrum auction.

Source: Washington Post April 05, 2019 07:18 UTC