15.09.2022

In the Consultative Council, ANCOM together with the electronic communications industry and the civil society debated the draft decisions on the organization of the competitive selection procedure for awarding the available frequencies in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands and on the spectrum usage tariff, along with the Terms of Reference of the selection procedure. The final version of the draft decisions was sent for publication in the Romanian Official Journal. ANCOM will publish the announcement on the launching of the spectrum auction and will make available for sale the Terms of Reference.  

"The spectrum auction will boost connectivity in Romania by increasing the amount of radio spectrum needed for the economy and society to benefit from broadband electronic communications services, based on new technologies. Now, we are about to launch this auction - indeed, after a series of setbacks that delayed its organization.  The good collaboration and the constant dialogue between the state institutions, the representatives of the Government, the citizens and the industry have led to what I hope to be a balance both in terms of the spectrum usage conditions, and in terms of the licence fee and of the spectrum usage tariff. I take this opportunity to salute the approval, in Government session, of the reserve prices. These are fees that will go as revenues to the state budget", said Vlad Stoica, president of ANCOM.

555 MHz in the four frequency bands will be auctioned out, for the winning operators to cover with broadband services at least 70% of the country's population, most urban areas, existing highways, international airports and modernised railways, as well as 480 settlements identified as not covered or poorly covered with mobile communications services.

"A further step in making available a significant amount of radio spectrum to the communications market is to be taken in a few weeks and it will form the basis for spurring the sector development. We hope that the operators will weigh their offers well, because the spectrum is valuable, the duration of the licenses is long, and the years to come are challenging from multiple points of view. We, the ANCOM team, have made important efforts to increase the operators' confidence in the long-term prospects of Romanian mobile communications", said Bogdan IANA, vice-president of ANCOM.

Spectrum available in the auction and related fees

Following the selection procedure, ANCOM will award usage rights to enter into force from 2023 and 2026 respectively, with a validity term of 25 years and respectively 22 years. Exceptions are the frequency usage rights in the 2600 MHz band, which will be valid for 6 years and 3 months, a validity term necessary for alignment with the other existing rights in this band.

The total amount of the reserve prices established by Government Decision no. 1139/2022 is 693 million euros. These values have been determined according to several factors, including national and European benchmarks regarding the licence values in each of the bands auctioned out, the physical properties of the bands, the existing rights in these frequency bands, as well as the duration and usage conditions of the rights to be awarded.

The licence fee will be paid in instalments during the first years of licence validity.

Spectrum usage tariff

The spectrum usage tariff concerning the frequency bands for broadband wireless services has been significantly reduced as regards the 1800 MHz, 2100 MHz and 2600 MHz bands. With the new licences, the spectrum usage tariff in the 3400-3800 MHz band will reflect its new value as a pioneer band for the provision of next-generation broadband wireless services in Europe.

Moreover, in the context of organising the selection procedure in 2022, the 30% reduction of the spectrum usage tariff in the 700 MHz, 800 MHz, 900 MHz and 3400-3800 MHz frequency bands will help speeding up the achievement of national connectivity targets in the medium and long term. The operators will be able to benefit from this reduction, subject to undertaking major investment commitments, as set out in the Terms of Reference of the auction.