** Some European mobile operators will have to startfactoring in potentially higher costs related to spectrumlicenses that come up for renewal over the next couple of years.
** The process to renew begins in countries such as Italyand Germany later this year according to analysts.
** Sweden's Tele2 failed to win frequencies in aNorwegian auction in December.
** Some analysts say that the auction headwind is not fullypriced in the share prices of telecom operators.
** Espirito Santo analysts last week downgraded Tele2 to"sell" from "neutral", French low-cost telecoms company Iliad to "neutral" from "buy" and telecom major Vodafone to "sell" from "neutral".
** Espirito Santo estimates that on a ten year view, thespectrum cost could amount to 10 percent of the marketcapitalisation for several European operators includingVodafone, Deutsche Telekom and Orange. (RM: atul.prakash.thomsonreuters.com@reuters.net)
Vodafone (VOD)