Swiss regulator ComCom has dropped its proposed two-step frequency-portfolio mechanism for the country's next multiband spectrum auction, replacing it with tighter spectrum caps just months before operators must re-bid for more than half of Switzerland's mobile frequencies.

The decision comes as a late change to the auction's central competition-protection tool. The regulator believes competition can be protected with tighter bidding restrictions and a simpler process, according to its final auction proposal and accompanying factsheet.

The award covers 590 MHz of spectrum across the 800, 900, 1800, 2100 and 2600 MHz bands, split into 56 blocks. Swisscom, Salt and Sunrise currently hold these frequencies under licences awarded in 2012 that expire at the end of 2028. Applications to participate are due by 3 December 2026, with the auction itself expected in the second quarter of 2027.

Portfolio design abandoned

The draft consulted on between October and December 2025 proposed a two-step structure. Bidders could first apply for one of three identical, fixed-price spectrum portfolios — a guaranteed basic package of two blocks each at 800 MHz and 900 MHz, two at 1800 MHz, one at 2100 MHz and two at 2600 MHz. A second step would then run a competitive multi-round auction for the remaining spectrum.

Consultancy DotEcon designed this format, previously used in a different form for the Netherlands' 2024 3.5 GHz auction. It was intended to guarantee each applicant a viable minimum holding regardless of how aggressively rivals bid for the rest.

That mechanism is gone. ComCom's factsheet says the 2025 consultation showed that "the structure of these portfolios was highly controversial". The regulator said it "reconsidered the auction design and decided to dispense with frequency portfolios", arguing the same competitive protection "can be achieved with tighter bidding restrictions" while simplifying the process.

The final procedure runs straight from an application phase into a clock phase — triggered only if demand exceeds supply in any category — followed by a single sealed-bid assignment round to determine where each winner's blocks sit within the band. It is the same clock-auction format used in Switzerland's 2019 award.

Caps replace guarantees

In place of the portfolios, ComCom has set a ceiling of 230 MHz on the total FDD spectrum any single bidder can win — 23 of the 56 blocks on offer. That is tighter than the roughly 270 MHz "per operator for all the spectrum available" ceiling described in the 2025 draft.

Band-specific caps also apply: no more than 50 MHz combined in the sub-1 GHz bands (five blocks across 800 and 900 MHz), 100 MHz at 1800 MHz, 80 MHz at 2100 MHz and 100 MHz of FDD spectrum at 2600 MHz. No cap applies to the separate 2600 MHz TDD/SDL category, where only two blocks are on offer.

The two market measures differ fundamentally. A cap limits how much the largest bidder can win but guarantees nothing to smaller bidders. A portfolio would have guaranteed every applicant, including a financially constrained smaller operator, an identical baseline package independent of the competitive outcome.

Neither mechanism directly addresses Switzerland's existing spectrum imbalance. Swisscom holds 455 MHz across all bands, against 295 MHz for Sunrise and 270 MHz for Salt, according to ComCom's figures. The new caps can prevent that gap from widening further but are not designed to close it.

At a press conference announcing the decision, the government said the reallocation was necessary to give other providers a chance to enter the Swiss market. Market observers consider new entry highly unlikely.

Operators push back on prices

The auction is causing tension among telecoms firms, according to local reporting. Operators object not only to the allocation process but also to the prices the federal government is demanding.

"Switzerland currently has excellent mobile network coverage," said Swisscom spokesperson Armin Schädeli. "This is due to the concessions already granted. We would have preferred an extension, as the results of an auction are naturally less predictable."

Reserve prices are in some cases significantly higher than those of the last award 15 years ago, operators point out. Starting prices stand at CHF 23.1m ($28.4m) per lot in the 800 MHz and 900 MHz bands, CHF 15.4m ($19m) for 1800, 2100 and 2600 MHz TDD, and CHF 7.7m ($9.5m) for 2600 MHz FDD.

"This artificially drives up frequency prices," said Sunrise spokesperson Rolf Ziebold. "Ultimately, this is capital that operators cannot invest in their networks, innovations, or products. It's a missed opportunity to conduct the auction in a way that would maximise the benefit for the population and the economy."

The auction is expected to generate approximately a billion Swiss francs for the government.

"We've seen that these frequencies in the mid-spectrum are actually very, very sought-after frequencies," said Martin Bürki, head of ComCom. "That's why we made some adjustments to the proposal."

With applications due by December 2026 and bidding set for mid-2027, Switzerland's three operators now face roughly a year to decide whether to contest the design or compete within it for spectrum they must win back before their 2012 licences lapse at the end of 2028.