14.07.2022

ANCOM has launched for public consultation the Terms of Reference, the draft Government Decision setting the minimum licence fee, the decision regarding the spectrum usage tariff and the decision on organising the competitive selection procedure for awarding the frequency spectrum available in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands. According to the auction documents, the Authority proposes that the winning operators cover with broadband services most of the urban areas, the highways in use, the international airports and the modernized railways, as well as 600 settlements identified as not covered or poorly covered with mobile communications services.

Following a detailed analysis, the Authority proposed the reserve prices in the auction, totalling EUR 693 million. The licence fee is set by Government Decision following consultation with the industry. Moreover, ANCOM proposed a significant reduction in the spectrum usage tariff.

”An essential condition for modern electronic communications services, based on new technologies, to be widely available at national level, is that operators should significantly increase and diversify their current radio portfolios. We believe that the regulations and conditions proposed by ANCOM in the tender documentation have been designed to strike a balance between the operators’ needs, the users’ interests and the need to capitalize on the radio spectrum, which is a limited resource of the Romanian state”, stated the ANCOM President, Vlad Stoica.   

Spectrum available in the auction and the corresponding fees

ANCOM will auction usage rights for a total of 555 MHz in the 4 frequency bands (700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz), coming into force in 2023 or 2026 for a validity period of 20 years, except for the rights in the 2600 MHz band, for which the validity period will be 6 years and 3 months (in order to align them with the existing rights in this band).

Concerning the licence fee, the values ​​proposed by ANCOM were determined based on a number of factors, including national and European benchmark values ​​of licences in each of the bands subject to the selection procedure, the physical properties of the bands, the existing rights in those frequency bands, as well as the duration and conditions of use of the rights to be granted.

ANCOM proposes that the licence fee be paid in instalments, in the first years of validity of the licences, the amount of starting prices being 693 million euros. The licence fee will be approved by Government decision and the respective amount will be revenue to the state budget.

Auction procedure

ANCOM will apply a competitive selection procedure for awarding the frequency usage rights, which is broadly similar to the previously organized procedures, i.e. each interested operator submits an initial bid indicating the number of blocks it intends to purchase in each of the available bands. Initial bids will show whether the demand exceeds the amount of spectrum available in certain bands, whether the demand corresponds to the number of frequency blocks available in each frequency band (category), or whether the demand does not exceed the amount of spectrum available. Based on the initial bids, primary rounds are organised, followed, if necessary, by an additional primary round and subsequently by an allocation round.

Operators that win usage rights in the 700 MHz band and currently hold usage rights below 1 GHz will have to fulfil certain coverage obligations for mobile broadband services correlated with a certain percentage of the population, until 31 December 2026. For new entrants on the Romanian electronic communications services market, the deadline for fulfilling the coverage obligations correlated to the percentage of population is 31 December 2028. According to the draft Terms of Reference, the licences to be granted in the 700 MHz band are aimed at providing for 95% of the length of highways and modernized railways to be covered with mobile broadband communications services until 31 December 2027, by operators currently holding usage rights below 1 GHz.

The winners of frequency usage rights in the 3400-3800 MHz band will have to fulfil gradual deployment obligations, by installing a certain number of base stations in various types of urban settlements. Thus, eight years after the entry into force of the licences (31 December 2033), the holders must have 2,200 base stations in operation, if they currently hold rights in this band. Winners who do not hold rights in this band, must have 1,400 base stations in operation until December 31, 2033. Furthermore, winners of frequency usage rights in the 3400-3800 MHz band will have to cover with broadband services all the international airports in Romania.

Spectrum usage tariff

ANCOM has also launched for public consultation the draft decision proposing the spectrum usage tariff for the bands in which broadband wireless services are provided. It is therefore proposed to significantly reduce the tariff for the 1800 MHz, 2100 MHz and 2600 MHz bands. On the other hand, the tariff for the 3400-3800 MHz band will increase from 1 January 2026, taking into account the current economic value of this band, by reference to the time when the current tariff was established, as a result of its international designation as a pioneer band in the provision of broadband wireless services.

Public consultation

The documents of the competitive selection procedure for awarding frequency usage rights in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands are available (in Romanian) here. The interested persons are invited to send their comments and suggestions until 10.08.2022.

The draft Government Decision setting the minimum amount of the value of the license fee for awarding usage rights for the frequencies available in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands, as well as the conditions for the payment of the license fee are available (in Romanian) here.  The interested persons are invited to send their comments and suggestions until 27.07.2022.

Comments may be sent to the ANCOM Headquarters (2 Delea Noua Street, 3^rd District, Bucharest), using the Online Registry of by means of the Authority’s Regional Divisions, as well as by fax to +40 372 845 402 or by e-mail to consultare@ancom.ro.