23.11.2021

”We have completed the auction for awarding usage rights in new frequencies for broadband mobile communications. The two winners will pay to the state budget a total amount of EUR 43.4 million, i.e. 60% of the value of the spectrum resources auctioned off. We decided to organize the auction this year in order to offer the interested operators an opportunity to maximize their spectrum portfolios, for them to expand the capacity of their networks and, thus, to be able to offer the latest generation of services. This awarding of additional spectrum for broadband mobile communications services will boost competition on the Romanian telecom market, to the benefit of end users.”, declared ANCOM Vice-president Bogdan IANA on 23 November 2021, at the end of the competitive selection procedure for awarding 195 MHz available in the 800 MHz, 2600 MHz and 3400 – 3800 MHz bands.  

Results of the spectrum auction

After bidding in the spectrum auction, S.C. RCS & RDS S.A. won the usage rights for the paired block of 2x5 MHz auctioned off in the 800 MHz band, for 4 paired blocks of 2x5 MHz in the 2600 MHz FDD band and for one unpaired block of 15 MHz in the 2600 MHz TDD band, for the period 1 January 2022 - 5 April 2029.

The amount of the licence fee to be paid by the operator consists of: EUR 22 million for the spectrum resources in the 800 MHz band, EUR 17.2 million for the frequency usage rights in the 2600 MHz FDD band and EUR 3.5 million for the frequency block in the 2600 MHz TDD band. The total amount to be paid by the operator as licence fee for all the frequency usage rights acquired in this spectrum auction is EUR 42.7 million.

This operator thus significantly increases the amount of spectrum for which it holds usage rights, which will impact the already vivid competition in the Romanian electronic communications services market.

Invite Systems S.R.L. submitted a bid and won usage rights for one unpaired block of 5 MHz in the 3400-3600 MHz frequency band, for the period 1 January 2022 - 31 December 2025, for which it will have to pay a licence fee amounting to EUR 700,000.

The total amount obtained following this competitive selection procedure is EUR 43.4 million, which is revenue to the state budget. Licence fees must be paid within 15 days from the date of announcing the winners in the selection procedure.

Auction procedure

The competitive selection procedure for awarding usage rights for the spectrum resources available in the 800 MHz, 2600 MHz and 3400-3600 MHz bands was launched on 11 October 2021.

2 of the 5 operators having purchased the Terms of Reference submitted the initial bids, which - following analysis – were declared winners in the qualification stage. On 23 November an additional primary round was organised, in which the qualified participants had the opportunity to submit additional bids.

Coverage obligations

The winning operators will have coverage and roll-out obligations imposed in the frequency usage licences.

For the usage rights in the 800 MHz band, the licence holder has the obligation to ensure that 95% of the population of 56 localities specified in the Terms of Reference will be covered by broadband mobile communications services with a downlink data transfer speed of at least 2 Mbit/s, with a 95% probability of indoor reception. This obligation will be in force from 31 December 2023, at the latest, until the end of the licence validity period, i.e. 5 April 2029. Within 7 days from the conclusion of the auction procedure, prior to the issuance of the frequency usage licences, the company RCS & RDS S.A., as the winner of the 800 MHz block, will send ANCOM a list of the 56 localities it chooses to cover out of a total of 83 available.

The winner of the frequency usage rights for the block in the 3400-3600 MHz band will have gradual roll-out obligations, i.e. to put into operation a number of base stations. Thus, in the first year after the entry into force of the licence, Invite Systems S.R.L. will have the obligation to install 25 base stations, and within three years and six months after the entry into force of the licence, it must have 100 base stations in operation, installed anywhere in the country.

Further details on the competitive selection procedure for awarding frequency usage rights in the 800 MHz, 2600 MHz and 3400-3600 MHz bands are available here.