Ancom - ANCOM a stabilit detaliile licitatiei pentru banda 3,4

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ANCOM Established the Details of the Auction for the 3.4 - 3.8 GHz Band

2.09.2015

The Romanian National Authority for Management and Regulation in Communications (ANCOM) agreed, in the Consultative Council, both the organisation details and the Terms of Reference for the competitive selection procedure with a view to awarding licences for the use of the radio frequencies in the 3410-3600 MHz and the 3600-3800 MHz bands. In these bands, the winners will be able to provide, on a national level, among others, broadband wireless data transmission and internet access services. Moreover, the Authority adopted a series of amendments regarding the annual spectrum usage fee for certain radiocommunications stations and networks.

According to the Strategy and the Action Plan for the implementation of broadband communications systems, on a national level, in the 3400 – 3800 MHz band, previously adopted by the Authority, ANCOM will organize, by the end of this year, one selection procedure for both of the frequency bands,auctioning out 16 paired blocks (2x5 MHz bandwidth) to be awarded on a national level in the 3.4 - 3.6 GHz band and 36 unpaired blocks (5 MHz bandwidth) to be awarded on a national level in the 3.6 – 3.8 GHz band. The new spectrum usage rights will enter into force from1 January 2016, for a 10-year period.

The reserve price for each of the frequency blocks in the two bands is the minimum value of the licence fee established by the Government Decision approved on 26 August 2015, namely 370,000 euros for the blocks in the 3.4 – 3.6 GHz band, respectively 185,000 euros for the blocks in the 3.6 – 3.8 GHz band.

According to the decision adopted today, the interested operators will submit an initial bid indicating the number of frequency blocks they intend to acquire in each of the two available bands. The initial bids will indicate whether the demand exceeds the offer in certain bands, whether the demand is lower than the offer or whether the offer equals the demand. In the auction stage, depending on the demand, ANCOM will organize one or several primary rounds, respectively additional primary rounds, as well as an allocation round for establishing the position, within each of the bands, of the frequency blocks won by each bidder. All the bids submitted in the primary and additional primary rounds will target frequency block packages, therefore a bid submitted in a round can be a winning one only as a whole, whereas a bidder cannot win a frequency block for which it has not bid.

The holders of the usage rights won in the selection procedure will have the obligation to put into operation, anywhere on the national territory, 25 base stations within one year from the entry into force of the licence, 50 – within two years and 100 – within four years from the entry into force of the licence.

Furthermore, during today’s Consultative Council, ANCOM and the industry agreed a series of amendments regarding the radio spectrum usage fee, including as regards the tariff owed for broadband public electronic communications networks in the 3400-3800 MHz band. Thus, the providers will pay 72,000 euros/block for the usage of a paired 5 MHz block awarded on a national level in the 3400-3600 MHz band, respectively 36,000 euros/block for the usage of an unpaired 5 MHz block awarded on a national level in the 3600-3800 MHz band. This tariff was determined in direct proportion to the amount of the current tarriff applicable in these bands for 2x7 MHz blocks in the 3.4-3.6 GHz band, respectively for 2x28 MHz blocks in the 3.6-3.8 GHz band, and shall enter into force starting from 1 January 2016, once with the new licences.

Currently, there are seven licences in force in the 3410-3600 MHz band, held by Orange Romania, UPC Romania, Vodafone Romania and 2K Telecom. All of them have been issued for the provision of public electronic communications networks and services at a national level, by means of Fixed Wireless Access (FWA) and Nomadic Wireless Access (NWA) applications. There is one licence awarded in the 3600-3800 MHz band, to the National Broadcasting Company, for the provision of public electronic communications networks and services by means of broadband wireless access (BWA) applications, on a national level. All these eight licences are valid until 31 December 2015.