​Only Orange, Vodafone and RCS&RDS have submitted their bids by the October 27, 2022 deadline in the competitive selection procedure for the allocation of new radio frequencies to be used specifically for 5G technology, the communications regulator (ANCOM) announced on Friday. ).

• “By Thursday, October 27, 2022, the submission deadline, ANCOM received 3 applications from Orange Romania, RCS&RDS and Vodafone Romania in the competitive selection procedure organized for the allocation of 555 MHz in the bands 700 MHz, 1500 MHz, 2600 MHz and 3400- 3800 MHz,” the agency said.

The fourth largest local player, Telecom Mobile (controlled by the Greeks from OTE after the sale of landline operations to Orange), he showed no interest and no other operators from outside the country.

The tender commission will analyze the qualification documentation and no later than November 4, 2022, will announce which operators will participate in the tender announced by the Office on September 19, 2022.

What conditions must be met by operators interested in 5G

The application file submitted by each operator contains documents representing the candidate’s situation, which demonstrates, among other things, the fulfillment of payment obligations to the state budget, social insurance budgets and special funds, as well as the fact that the candidate in question meets the conditions of participation:

• can confirm a turnover in the last year of at least 10 million euros (equivalent in lei) or a subscribed and paid-up capital of at least 1 million euros (equivalent in lei), that they are not in a state of bankruptcy or liquidation, that the enterprises they manage are not unionized judge that his commercial activity is not suspended, etc.

In addition, the application file must also contain an initial offer indicating the number of units the applicant wishes to purchase in each of the available spectrum categories.

5G auction calendar

If the demand is higher or lower than the supply, the actual auction will start on November 8, 2022 with the primary rounds, respectively, with an additional primary round, so that the final results will be announced, most likely during the month of November.

If demand equals supply, then it will go directly to the spectrum allocation rounds, where operators will bid on the positions they want in the spectrum.

The state would like to raise approximately 700 million euros, but not all the radio frequency put up for auction was sold.

Last month, the government approved the starting prices and payment terms for licenses in a so-called 5G auction to be held this year, from which the state hopes to receive almost 700 million euros.

Licenses for the right to use radio frequencies available in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands will be granted for 25 years instead of 20 years as originally proposed, and the annual spectrum fee will be reduced by 30% , relaxation to operators during public consultations.

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.

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.

Orange, Vodafone and Telekom criticized the government’s energy regulation: it seriously affects investment plans, including 5G

The funds that the state could receive from the sale of frequency bands could be significantly less due to the difficult economic and regional situation, as well as government regulations in the energy sector.

Last month, ​Orange, Vodafone and Telekom Mobile publicly warned that changes in the energy sector introduced by the government through emergency decree no. 119/2022 has a serious destabilizing effect on telecommunications services and seriously affects investment plans in the industry.

With this decree, the Government decided to end consumption compensation for all non-household consumers, as was the case in Decree 27/2022, telecommunications companies were removed from the compensation scheme.

Telecommunications operators have publicly warned that the operation of networks considered strategically important, especially in the current geopolitical context, involves constant and significant electricity consumption.

“Given the context of the announced auction using the 5G spectrum, which involves significant investments by telecommunications operators, as well as the fact that telephone and Internet services are important and present in all aspects of economic, social and educational activities in Romania, the adoption of this The state of emergency creates the risk of serious disruptions with a negative impact on the entire economy and society as a whole and jeopardizes Romania’s digitization efforts,” the three largest operators said through the voice of the Romanian Association of Mobile Operators (AOMR).

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