Telecom spectrum auction, "double than the current range"

The President of the National Authority for Management and Regulation in Communications (ANCOM), Catalin Marinescu, said Monday that the total amount that the Romanian state will win from the allocation of spectrum resources amount to 682.13 million Euros, the band being assigned to 575 MHz.

"This is the first time when the largest amount of resources ever allocated in our country was given in a single procedure, namely 575 MHz, given that now are used only 283 Mhz.
"Basically, now it was double bid and the amount of spectrum available for mobile communications increased by 77 percent.

"The total amount that the operators for these frequencies will pay is over 682.1 million Euros," said Catalin Marinescu, quoted by Agerpres.

ANCOM President stated, in a press conference, that license fees whose aggregate value amount to 682,136,036 Euros will be paid by installments, depending on frequency blocks for until November the 30th 2012, respectively until June the 30th 2013, the amounts being entirely paid at the Ministry of finance.

The spectrum resource allocation of Monday was the largest mobile telephony auction ever organized in Romania.

Operators who participated in the auction were 2K Telecom, Cosmote, Orange, RCS & RDS and Vodafone.

The five operators who participated awarded their frequencies, either in bands of 900 Mhz/1800Mhz for providing 2G/3G services or in the 800 MHz and 2600 MHz, which are expected for 4G services that will allow speeds up to 10 times higher than the other in 3G.
From the auctioned resources remained non bid a quantity of 90 MHz.

Catalin Marinescu said that the five operators have awarded 485 MHz in the 800 MHz, 900 MHz, 1800 MHz and 2600 MHz, radio frequencies for mobile voice and broadband Internet.

How much will pay each operator for holding spectrum up to 2029

Thus, Cosmote Romanian Mobile Telecommunications has awarded a block in the 800 MHz band, two blocks in the 900 MHz band, five blocks in the 1800 MHz and two blocks in the 2600 MHz (FDD), available for the period 2014 - 2029, for the amount of 179.88 million Euros, representing the license fee.

Cosmote Romanian Mobile Telecommunications renewed so the rights of using the portfolio spectrum currently held, while increasing it by 58 percent.

Orange Romania won two blocks in the 800 MHz band, two blocks in the 900 MHz band, 4 blocks and 4 1800 MHz to 2600 MHz blocks (FDD), available for the period from 2014 to 2029.

Orange Romania has also won short-term licenses in the 900 MHz band - 5 blocks, i.e. 1800 MHz - 3 blocks, available from January the 1st 013 to April the 5th 2014.

Orange Romania will benefit from licenses for a portfolio of spectrum resources with 84 percent higher than at present, for the amount of 227,135,000 Euros, representing the license fee.

As regards the RCS & RDS operator, it has awarded a block in the 900 MHz band, available for the period 2014-2029 and for which will pay 40 million Euros, as license fee and the entry into 900 MHz band, RCS & RDS has increased its portfolio spectrum by 29 percent.

ANCOM data shows that Vodafone Romania won two blocks in the 800 MHz band, two blocks in the 900 MHz band, six blocks in the 1800 MHz band and 15 MHz block in the band 2600 MHz (TDD), available for the period 2014 - 2029.

Also, Vodafone Romania won the short-term licenses in the 900 MHz band - five blocks and respectively three blocks in the 1800 MHz band, available for the period January the 1st 2013 - April the 5th 2014.

Vodafone Romania will have a portfolio of licenses for spectrum resources with 78 percent higher than at present for an amount of 228.52 million Euros.

Finally, 2K Telecom Company won two blocks of 15 MHz in the 2600 MHz band (TDD), available for the period from 2014 to 2029 and for which will pay 6.601 million Euros.

4G technology "could be introduced in Romania"

"Mobile communications in Romania enters a new era, once with this auction: spectrum resources available to operators increase by 77 percent and allow the introduction of 4G technology, distribution 900 MHz band while becoming more efficient.

"For operators, auction results open up additional business opportunities and innovation, ensure investment security and an exceptional efficiency in spectrum use.

For users, the auction brings access to four national networks with better coverage, higher speed for data transfer, in general more services, better and at competitive prices, in the context of a healthy competition.

"We successfully end the first auction that allows 4G in Central and Eastern Europe," said Catalin Marinescu.

ANCOM President also showed that after the auction, 676 villages, currently underserved in the mobile communications network bandwidth, are supposed to benefit with priority of coverage with HSPA, HSPA + or LTE.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University