All communication operators interested in participating in the auction for issuing licenses for the use of radio frequencies in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands can submit applications from Monday, September 19, the agency reports. regulatory body in the field of communications (ANCOM).

The notice of participation and documentation for the organization of the competitive selection procedure for the purpose of granting the rights to use radio frequencies in the ranges of 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz can be read. here.

• “Today we are opening a tender for the granting of rights to use radio frequencies intended for the implementation of new technologies. (..) The increase in the amount of spectrum will lead to new investments in the Romanian market for the benefit of the entire economy.” said Vlad Stojka, President of ANCOM.

Terms of participation in the auction: Applications are accepted until October 27

In order to participate in the auction, interested parties must submit an application file to ANCOM and purchase a specification that costs 5,000 lei, which is non-refundable.

The candidate’s file must contain documents highlighting the candidate’s position, which, among other things, show the fulfillment of obligations to the state budget, social insurance budgets and special funds, as well as the fact that the corresponding candidate meets the conditions for participation:

• has a turnover in the last year of at least 10 million euros or a subscribed and paid-up capital having the equivalent in lei of at least 1,000,000 euros,
• is not in a state of insolvency or liquidation,
• his affairs are not managed by a union judge,
• commercial activity is not suspended,
• does not belong to another candidate’s group, etc.

The application file will also contain a guarantee of participation and an initial offer, which will indicate the number of blocks that the applicant wishes to purchase in each of the categories of available frequency blocks.

Persons interested in participating in the auction can apply until October 27, 2022. The competition commission will analyze the submitted documents and by October 31, 2022, will announce which of the applicants will advance to the next stage.

Depending on the initial bids submitted by the qualified candidates, it will be announced on November 4 whether an auction stage is required, in which case the actual auction can begin November 8, 2022.

What radio spectrum is being auctioned and coverage obligations

During the auction, 555 MHz will be available in the frequency bands 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz, the winning operators will cover at least 70% of the country’s population, most urban areas, and highways with broadband services. , international airports and modernized railways, as well as a number of 480 settlements identified as not covered or poorly covered by mobile services.

During the selection procedure, ANCOM will grant the rights of use, which will take effect from 2023, respectively 2026, and will have a term of 25 years, respectively 22 years. The exception is the rights in the 2600 MHz band, for which the validity period will be 6 years and 3 months, necessary to harmonize with other existing rights in this band.

How does the bidding process work?

To allocate the spectrum, ANCOM will use a competitive selection procedure, largely similar to the previously organized one, which requires each interested operator to submit an initial bid indicating the number of blocks they wish to purchase in each of the available bands.

Initial bids will indicate whether demand is greater than the amount of spectrum available in certain bands, whether demand is equal to the number of frequency blocks available in each band (category), or whether demand does not exceed the amount of spectrum available. Depending on the initial bids, a bidding stage begins, consisting of primary rounds, followed, if necessary, by an additional primary round and, subsequently, by an allocation round.

Operators who will grant rights of use in the 700 MHz band and currently have rights of use in the bands below 1 GHz have imposed an obligation to cover mobile broadband services related to a certain percentage of the population for six years after entry into force license

If new operators enter the Romanian market of electronic communication services, the deadline set for the fulfillment of the obligations regarding the coverage of the percentage of the population is eight years from the date of entry into force of the licenses.

According to the Specifications, with the help of the licenses to be granted in the 700 MHz band, it is envisaged that 95% of the length of the upgraded roads and railways will be covered by mobile broadband services within six years from the date of entry into force by the operators who currently have the rights to use in bands below 1 GHz.

In addition, all operators granting rights in the 700 MHz band will have an obligation to cover the number of 80 “white zone” localities/blocks within six years for existing operators already holding rights in bands below 1 GHz, respectively eight years for newly hired operator.

For operators who will transfer their rights to use the 3400-3800 MHz band, obligations are established for the gradual development of networks by establishing the number of base stations in various categories of urban settlements within eight years from the date of entry into force of the licenses, i.e. until December 31, 2033. owners must have 2,000 base stations in operation; if they still own the rights to this band, these operators will also ensure that the band covers the services of all international airports in Romania.

Future licensees who do not currently have rights in the 3400-3800 MHz band will have a total of 1400 base stations in operation by 31 December 2033.

• The total value of the starting prices for all frequency bands auctioned is 693 million euros, but not once in any procedure have all available resources been purchased.