Digital dividend - The First Romanian Spectrum Auction
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1 Digital dividend - The First Romanian Spectrum Auction for Mobile Electronic Communications ANCOM Budapest, January 2014
2 Decision of the WRC B In Region 1, the allocation to the mobile, except aeronautical mobile, service on a primary basis in the frequency band MHz shall come into effect from 17 June 2015 and shall be subject to agreement obtained under No with respect to the aeronautical radionavigation service in countries mentioned in No For countries party to the GE06 Agreement, the use of stations of the mobile service is also subject to the successful application of the procedures of that Agreement. Resolutions 224 (Rev.WRC-07) and 749 (WRC-07) shall apply. (WRC-07) 5.317A Those parts of the band MHz in Region 2 and the band MHz in Regions 1 and 3 which are allocated to the mobile service on a primary basis are identified for use by administrations wishing to implement International Mobile Telecommunications (IMT). See Resolutions 224 (Rev.WRC-07) and 749 (WRC-07). This identification does not preclude the use of these bands by any application of the services to which they are allocated and does not establish priority in the Radio Regulations. (WRC-07) FIXED BROADCASTING MOBILE except aeronautical mobile 5.316B 5.317A A 5.319
3 European Comission measures 1. Adopting a harmonised technical conditions of use of the 800 MHz band in Europe DEC. 267/ Comission Decision on harmonised technical conditions of use in the MHz frequency band for terrestrial systems capable of providing electronic communications services in the European Union 2. European Parliament DEC.243/2012/UE the date for Member States to release the band MHz for broadband mobile services Guard band Downlink Duplex gap Uplink 1MHz 30 MHz (6 blocks of 5 MHz) 11 MHz 30 MHz (6 blocks of 5 MHz)
4 Situation in Romania Band MHz was used in the past exclusively for military applications. ANCOM carried on disscusions in Interdepartamental Committee for Radiocommunications (CIR) in order to make the band available for non-governamental use at RRC06 Romania was planned 1 MUX in channels a part of this band ( MHz) was free for nongovernamental usage July 2013 band MHz was free for non-governamental usage
5 A Timely Needed Auction Expiring licences 2 GSM licences ( MHz) end GSM licence ( MHz) April 2014 New frequencies available following release by Ministry of Defence (800 MHz, 1800 MHz, 2600 MHz) DTT was not yet implemented (800 MHz band was not used for simulcast) amendments to TNABF (800 MHz, 2600 MHz) appropriate for LTE, higher bandwidths Increasing data traffic on the mobile networks ever-increasing data volume at mobile locations (more than 200 MB/active SIM card/month) day by day, ever more smartphones, tablets etc. use more and more applications, mobile internet, social networks increased network capacity New technologies in mobile communications HSPA+ and LTE (4G)
6 Competitive Selection (auction) a transparent and objective procedure developed internally by ANCOM s own experts in frequency management, economical & technical regulations, legal, and IT based on the models confirmed by international practice adapted to the circumstances of the Romanian market the market decides the allocation & distribution of frequencies (not the Authority) sufficiently small blocks (for flexibility of choice) and sufficiently large blocks (for technological neutrality = 2G, 3G, 4G): 5 MHz FDD, 15 MHz TDD Caps for 800MHz and 900MHz bands: 2X10 MHz independent frequency blocks (one from another) the operators can obtain frequency portfolios that best answer their needs and their business models non-discriminatory treatment the same participation conditions for all the interested parties, new entrants or existing operators the only differences: closer deadlines for coverage obligations in case of existing operators
7 The Auction Was Open, Ascending, Multi-band and Multi-round Receiving the applications 1 Qualification stage Demand > supply in at least one band NO YES Primary rounds 2 Auction stage Demand > supply in at least one band NO Additional round YES Abstract blocks Determine the winning offers and basic prices Assignment round Concrete blocks 3 Awarding stage Presentation of the outcomes, fee payment and licence awarding
8 Auction Calendar December 2011 adoption GO 111/ December 2011 decision of extending the GSM licences 14 March 2012 public consultation document package 2 July 2012 invitation to the auction 14 August candidatures submitted 20 August 2012 all candidatures validated 10 September primary rounds 11 September primary round 14 September 2012 additional round 1 17 September 2012 additional round 2 21 September allocation rounds 24 September allocation rounds COSMOTE RMT ORANGE ROMANIA RCS & RDS VODAFONE ROMANIA 2K TELECOM
9 Auction Outcomes = All Objectives Fulfilled Substantial increase in the amount of spectrum available for mobile communications some additional 210 MHz (+77%) from which 50 MHz in 800 MHz band Advantages for the users technological innovation => new high-speed services more spectrum => higher quality and better coverage 676 new rural localities (outside 3G coverage) will benefit from HSPA/HSPA+/LTE Stimulate technological development the operators were free to choose the technologies to be used foster the commercial launch of LTE/4G (urban from 2013, national from April 2014) Sustainable development of the competition environment 4 national coverage networks, more efficient distribution of the 900 MHz band Cosmote, RCS & RDS and 2K Telecom undertook to host MVNOs Secure long-term planning and investments the operators may plan their network development and investments up to 2029 transitional national roaming, for the first time in Romania An auction with efficient results no significant differences between the licence fees for substitutable bands ensuring continuous, homogeneous/unbroken portfolios
10 Licence Winners & Licence Fees Total: 682,136,036 from which cca 175,000,000 for 800MHz Prices paid/mhz/population - in range with EU averages after discounted for ARPU differential Licences fees were paid until June 2013 The licences were granted in July 2013 for all winners
11 Allocation of the auctioned spectrum by bands & holders BEFORE THE AUCTION 800 MHz NG 30 MHz MApN 30 MHz 900 MHz Cosmote 2 x 12,4 MHz 2 x 12,4 MHz 1800 MHz Cosmote 2 x 12,6 MHz 2 x 12,4 MHz 2 x 12,4 MHz MApN 2 x 37,5 MHz 2100 MHz 2100 MHz (TDD) RCS & RDS 2 x 15 MHz CMT ORO VOD RCS 5 MHz 5 MHz 5 MHz 5 MHz Cosmote (Telemobil) 2 x 14,8 MHz 2 x 14,8 MHz 2 x 14,8 MHz Not auctioned 2600 MHz Alocarea Allocation portofoliilor of the auctioned pe benzi spectrum & titulari by bands & holders DUPĂ AFTER LICITAŢIE THE AUCTION 800 MHz Neadju decat NG 20 MHz CMT 2x5 MHz MApN 135 MHz NG 30 MHz 900 MHz RCS 2x5 Mhz Cosmote 1800 MHz 2 x 30 MHz 2 x 20 MHz Cosmote 2 x 25 MHz 2100 MHz 2100 MHz (TDD) RCS & RDS Cosmote (Telemobil) CMT ORO VOD RCS 5 MHz 5 MHz 5 MHz 5 MHz 2 x 15 MHz 2 x 14,8 MHz 2 x 14,8 MHz 2 x 14,8 MHz Not auctioned 2600 MHz Cosmote 2 x 20 MHz Neadjudecat 2 x 40 MHz (8 blocuri) 2600 MHz (TDD) 2K telecom 1 x 30 MHz 1 x 15 MHz
12 Thank you!
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