01.07.2021 

” Expanding the capacity of wireless electronic communications networks has become a necessity, given the rapid growth of data traffic and of the economic, industrial and social importance of digital economy. Therefore, we intend to organize an auction for awarding frequency usage rights in the spectrum bands that remained available after the selection procedures the Authority carried out in 2012 and 2015. The validity of the frequency usage licences to be issued will be aligned with that of the licences in force, in order to ensure the simultaneous expiry of the usage rights for all the frequencies in the same band.”, declared Bogdan IANA, vice-president of ANCOM.

Auction procedure

The frequency usage rights for the spectrum resources available in the 800 MHz, 2600 MHz and 3400-3600 MHz bands will be awarding through a competitive selection procedure.

Awarding frequency usage rights by auction is the most appropriate solution for the optimal use of available spectrum resources, setting the premises for the efficient long-term use of radio frequencies, by developing state-of-the-art electronic communications networks capable of providing innovative broadband communications services. ANCOM will apply a competitive selection procedure broadly similar to the one organized in 2012, which means that each interested operator submits an initial bid indicating the number of blocks it wants to purchase in each of the available bands. Initial bids will show whether the demand is greater than the amount of spectrum available in certain bands, whether it is equal to the number of frequency blocks available in each band (block categories), or whether the demand does not exceed the amount of spectrum available. Depending on the initial bids, primary rounds are organised, followed, if necessary, by an additional primary round and an assignment round.

ANCOM proposes awarding the usage rights for the available frequencies by organizing two distinct selection procedures: the one hereby launched for public consultation, aimed at awarding usage rights for the available spectrum remaining from previous auctions, organized in 2012 and 2015, and a second, subsequent selection procedure, for awarding usage rights in the new bands (700 MHz and 1500 MHz) and in the 3400-3800 MHz band (with the rights coming into force on 01.01.2026 - when the existing licences in this band expire), after the transposition into national law of the European Electronic Communications Code.

Spectrum available in the auction

In this selection procedure, ANCOM intends to auction off 195 MHz, as follows:

a)    1 block of paired 5 MHz in the 800 MHz band, for the period 1 January 2022 - 5 April 2029;

b)    8 blocks of paired 5 MHz in the 2600 MHz band, for the period 1 January 2022 - 5 April 2029;

c)    1 block of 15 MHz TDD in the 2600 MHz band, for the period 1 January 2022 - 5 April 2029;

d)    18 blocks of 5 MHz in the 3400-3800 MHz band, for the period 1 January 2022 - 31 December 2025.

Licence fee

ANCOM also proposes for public consultation the starting price for each band. Thus, the minimum amount of the licence fee for the frequency usage rights available in the auction is the RON equivalent of:

a)    EUR 22 million for the paired block in the 800 MHz band;

b)    EUR 4.3 million for a paired block in the 2600 MHz band;

c)    EUR 3.5 million for the unpaired block in the 2600 MHz band;

d)    EUR 700,000 for an unpaired block in the 3400-3800 MHz band.

The licence fees will have to be paid within 15 days from the date of announcing the final results of the auction, and the respective amounts will be revenue to the state budget.

Public consultation

The documents for organizing the spectrum auction, respectively the draft decision for awarding frequency usage rights, the draft Government Decision on setting the amount of the minimum licence fee for awarding frequency usage rights, as well as the licence fee payment conditions and the Terms of Reference are available, in Romanian, here. The interested persons are invited to send their views and comments, not later than 30 July 2021, to the ANCOM headquarters (2 Delea Noua Street, Bucharest 3) using the online Registry, or through the Authority’s Regional Divisions. Comments may also be sent by fax to +40 372 845 402, or by e-mail to consultare@ancom.org.ro.

Background info

Currently, in these frequency bands, the operators active on the Romanian market hold frequency usage licences acquired following the auctions organized in 2012 and 2015.

In the 800 MHz band, the following operators have usage rights valid for the period 2014 - 2029: Orange Romania and Vodafone Romania (2 blocks each), Telekom Romania Mobile Communications - 1 block.

In the 2600 MHz FDD band, the following operators have usage rights valid for the period 2014 - 2029: Orange Romania - 4 blocks, and Telekom Romania Mobile Communications - 2 blocks.

In the 2600 MHz TDD band, RCS & RDS has usage rights for 2 blocks of 15 MHz each, valid for the period 2015-2029.

In the band 3400 - 3800 MHz, the following operators have usage rights valid for the period 2016 - 2025: Orange Romania - 115 MHz (TDD), Vodafone Romania - 40 MHz (TDD), The National Radiocommunication Company S.A. - 50 MHz (TDD), RCS & RDS - 50 MHz (TDD).