​On Wednesday, the government will approve the initial prices and terms of payment of license fees in a so-called 5G auction to be held this year, a procedure from which the state hopes to receive almost 700 million euros. Licenses will be granted for 25 years, rather than 20 years as originally proposed, and the annual rate for the use of radio frequency spectrum will be reduced by 30%, concessions granted to operators during a public consultation period.

The draft decision must be adopted by the government as soon as possible so that the telecommunications arbitrator (ANCOM) can start the so-called 5G auction, the procedure of which is quite lengthy.

• SEE THE HG DRAFT AND MAIN RECORD HERE

The licenses were already supposed to be issued by the end of this month, according to the milestone that Romania has taken on in the PNRR.

The draft regulation establishes the minimum prices used in the competitive selection procedure for the granting of rights to use radio frequencies available in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands, as well as payment conditions. license fee.

How the state hopes to attract almost 700 million euros to the budget

The regulator offers the following starting prices for this auction:

– EUR 55 million for a 2 x 5 MHz FDD block in the 700 MHz band, for a period of 25 years, starting from January 1, 2023;

– EUR 14 million for a 5 MHz SDL block in the 700 MHz band, for a period of 25 years, starting on January 1, 2023;

– EUR 6 million for a 5 MHz SDL block in the 1500 MHz band, for a period of 25 years, starting from January 1, 2023;

– 3.25 million euros for the 2 x 5 MHz FDD block in the 2600 MHz band, for the period from January 1, 2023 to April 5, 2029;

– EUR 6.5 million for a TDD block of 1 x 10 MHz in the 3400-3800 MHz range, for 22 years, starting from January 1, 2026;

ANCOM proposes to pay the license fee in stages, in the first years of the licenses, the sum of the starting prices is 693 million euros. Fees for licenses will go to the state budget.

Terms of payment for new licenses

The Authority proposes 6 payment installments for the rights, which take effect on January 1, 2023, except for the 2600 MHz band, where payment will be made in full.

Payment of the equivalent of the license fee as a result of the selection procedure, paid by each of its winners, will be made as follows:

(a) For each block received in the 700 MHz band (FDD):

– 30 million euros within 15 working days from the announcement of the results of the selection procedure;

– 3 million euros, until November 17, 2023;

– 4 million euros, until November 18, 2024;

– 5 million euros, until November 17, 2025;

– 6 million euros, until November 17, 2026;

– the remaining amount, which is the difference to the auction price of the corresponding package, until 11/17/2027;

(b) for each block received in the 700 MHz band (SDL):

– 3 million euros, within 15 working days from the announcement of the results of the selection procedure;

– 1 million euros, until November 17, 2023;

– 1 million euros, until November 18, 2024;

– 2 million euros, until November 17, 2025;

– 3 million euros, until November 17, 2026;

– the remaining amount, which is the difference to the auction price of the corresponding package, until 11/17/2027;

(c) for each block won in the 1500 MHz band (SDL):

– 2 million euros, within 15 working days from the announcement of the results of the selection procedure;

– EUR 0.5 million, until November 17, 2023;

– EUR 0.5 million, until November 18, 2024;

– 1 million euros, until November 17, 2025;

– 1 million euros, until November 17, 2026;

– the remaining amount, which is the difference to the auction price of the corresponding package, until 11/17/2027;

(d) for each block won in the 2600 MHz band, the cost of the block within 15 working days from the announcement of the results of the selection procedure;

(e) for each block won in the band 3400-3800 MHz:

– 3 million euros, until July 1, 2025;

– EUR 0.5 million, until November 17, 2026;

– EUR 0.5 million, until November 17, 2027;

– the remaining amount, which is the difference to the auction price of the corresponding package, until 11/17/2028.

5G auction postponed

​The government is keeping secret the status of the 24 goals and milestones in the PNRR, which Romania assumed to fulfill in the third quarter of this year, and Prime Minister Căușe asked to be ready by September 15. At least the distribution of 5G licenses, a milestone planned for this quarter, is not possible in the estimated time frame.

• Read more: DOCUMENT A list of 24 stages of the PNRR that Chuke wants to have ready by September 15. The implementation stage is kept secret. At the very least, 5G licensing is long overdue

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