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5 Applications Submitted for the Spectrum Auction


Until Monday, 13 August 2012, the deadline set for submitting applications, ANCOM received 5 applications from entities wishing to participate in the largest spectrum auction ever held in Romania within which the 800 MHz, 900 MHz, 1800 MHz and 2600 MHz bands are made available for the provision of mobile communications in the 2013-2029 timeframe.
The auction commission will examine the submitted qualification documents and will announce by 20 August 2012 at the latest the operators admitted to participate in the auction. The application file submitted by each operator contains documents presenting the candidate’s standing which would prove, among others, the fulfilment of the obligations to the state budget, to the social insurance and special funds budgets, and also that the respective candidate meets the participation requirements. Thus, the candidate must be able to prove an average turnover of minimum EUR 10 million for the last 3 years, must not be in a state of insolvency or liquidation, its business must not be managed by a syndic judge, its entire commercial activities must not be suspended, the candidate may not be a member of another candidate’s group a.s.o. The application file also includes the initial bid which indicates the number of blocks which the candidate wishes to acquire in each of the available spectrum categories.
If the demand exceeds the offer, the auction will start on 10 September 2012 with the primary rounds, whereas the final results are to be announced most likely in October. If the demand is equal to the offer, the auction will begin directly with the assignment rounds during which the operators will bid for the positioning they wish in the band.
Two types of licences will be awarded under the auction: long-term licences (15 years, valid until April 2029) and short-term licences (1 year and three months, valid until April 2014). For the long-term licences, ANCOM will auction out 42 paired blocks of 5 MHz each, 6 of which in the 800 MHz band, 7 in the 900 MHz band, 15 in the 1800 MHz band and 14 in the 2600 MHz band, as well as 3 unpaired blocks of 15 MHz each in the 2600 MHz band. These licences will be awarded starting 6 April 2014. With regard to the licences to be awarded for a shorter period, ANCOM will auction out 10 paired blocks of 2.5 MHz in the 900 MHz band and 6 paired blocks of 5 MHz in the 1800 MHz band, resources which are currently used in their majority by Orange and Vodafone.