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Spectrum Auction Continues with Additional Rounds


After the primary bid held today, on the second day of the spectrum auction, the Commission announces that demand no longer exceeds the offer in any of the available bands. The primary rounds phase ends thus, after 3 bidding rounds. The auction for allocating the frequencies in the 800, 900, 1800 and 2600 MHz bands will continue with the additional rounds, as there are frequency blocks which remain unassigned. The first additional round of the two maximum possible is scheduled to take place on Friday, 14 September.
All bidders are allowed to participate in the additional rounds, regardless of whether they acquired or not frequency blocks during the primary rounds. The limitations on acquiring the usage rights will however apply. In each of these rounds, the bidders may submit a bid for one or several packages comprising one or several unassigned blocks, indicating the sum they are willing to pay for such a package.
The winning bids for the unassigned blocks, the winning bidders and the amounts they must pay will be determined following the additional rounds. The auction will end with the assignment round, when the operators may bid for the desired positioning in the band.
The operators participating in the auction are: 2K Telecom, Cosmote Romanian Mobile Telecommunications, Orange Romania, RCS & RDS and Vodafone Romania.
Background information
ANCOM auctioned out the rights for the use of the frequencies in the 800, 900, 1800 and 2600 MHz bands for the provision of mobile communications services – voice and data – for a 15-year period. It is for the first time in Romania that the spectrum licences are awarded by means of a competitive selection procedure.
As part of the procedure, the bidders may bid for two types of licences: 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 auctions 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 auctions 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, most of these resources being currently used by Orange and Vodafone.
The reserve price for each block in the four bands has been set by Government decision. Thus, the minimum price for each block in the 800 MHz band assigned for 15 years will be EUR 35 million, for the 900 MHz band will be EUR 40 million, respectively EUR 10 million per block in the 1800 MHz band and EUR 4 million per paired block and EUR 3 million per unpaired block in the 2600 MHz band. For those blocks to be assigned for periods of 15 months, the values have been set at EUR 1.7 million in the 900 MHz band and EUR 0.8 million in the 1800 MHz band.