31.10.2019

The ANCOM management has announced during a press conference held at the Authority’s headquarters that the auction for awarding the radio spectrum required for the implementation of the new technologies will take place in the first half of 2020. The ANCOM management said that the auction may no longer be held this year, the main reasons being the lack of a set of instruments regarding the network security requirements, the need to implement the Memorandum signed between the Governments  of Romania and of the USA, as well as the need for the future government - which drafts the 2020 budget - to approve the licence fees and the calendar for their payment. In such context, ANCOM believes the holding of the auction under full transparency and predictability conditions is not possible.

During the public consultation on the Documentation of the competitive selection procedure in view of awarding radio frequency usage rights in the 700 MHz, 800 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bands, the operators from Romania suggested changing the amount of the licence fees and the calendar for their payment, as well as the coverage obligations which ANCOM proposed in the Terms of Reference.

Upon analysing the comments received, ANCOM has already put again for public consultation the chapter dedicated to the coverage obligations. As for the licence fees and their payment mechanism, the Authority will forward to the Government its proposal to maintain the amounts proposed in the public consultation and phase out the fee payments, for a longer period of time and in keeping with the date of entry into force of the licences. The final decision will be taken by the Romanian Government.

The ANCOM representatives announced that the provisions entering in its area of competence comprised in the 5G auction documentation will be finalised by the end of this year so the auction could take place in the first half of the next year, in the context in which the European Commission set 30 June 2020 as deadline for making available to the operators the spectrum resources necessary for 5G implementation.

For the holding of the auction under optimum conditions, alongside the completion of the technical provisions under the Terms of Reference and the establishment of the licence fees, it is necessary to implement through proper means the Memorandum signed by the Governments of Romania and of the USA and to establish the network security measures. By the end of this year, the European Commission, in collaboration with ENISA (the European Union Agency for Cybersecurity), will publish a set of instruments on the network security requirements, which ANCOM wishes to take into account in the elaboration of the Terms of Reference for the 5G auction.

Context

At the end of July 2019, ANCOM launched for public consultation the Terms of Reference, the draft decision for establishing the tariff for the use of spectrum and the draft decision on the holding of the competitive selection procedure in view of awarding the usage rights for the radio spectrum available in the 700, 800, 1500, 2600 and 3400-3800 MHz bands.

The Authority also proposed the auction reserve prices whose total value amounts to 580 million euros. The amounts proposed by ANCOM were determined based on a series of factors among which the national and European benchmarks for the values of licences in each band from those submitted to the selection procedure, the physical properties of the bands, the existing rights in the bands, the duration and conditions for the use of the rights to be granted, as well as the national specificity and the European benchmarks for the auction reserve prices. The licence fees will be approved by Government Decision.

The award of spectrum by auction is the most appropriate solution to ensure an efficient use of a multitude of frequencies, the ANCOM objectives being to promote innovation, develop the digital infrastructures, by enhancing the network capacities in the dense areas, on the main terrestrial transport corridors, as well as the national coverage with broadband services, and ensure competition, the auction rules creating the conditions for the provision of 5G services through 4 networks with national coverage.