Spectrum Auction Successfully Concluded

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Following the spectrum auction held by ANCOM, 5 operators have won 485 MHz in the 800 MHz, 900 MHz, 1800 MHz and 2600 MHz bands, the radio frequencies suitable for broadband voice mobile communications and Internet. The amount of spectrum available for mobile communications increased by 77%.

Cosmote Romanian Mobile Telecommunications won 1 block in the 800 MHz band, 2 blocks in the 900 MHz band, 5 blocks in the 1800 MHz band and 2 blocks in the 2600 MHz (FDD) band, valid from 2014 through 2029, against the amount of €179,880,000 standing for the licence fee. Cosmote Romanian Mobile Telecommunications thus renewed its usage rights over the spectrum portfolio currently held and also increased it by 58%.

Orange Romania obtained 2 blocks in the 800 MHz band, 2 blocks in the 900 MHz band, 4 blocks in the 1800 MHz band and 4 blocks in the 2600 MHz (FDD) band, valid from 2014 through 2029. Furthermore, Orange Romania won short-term licences in the 900 MHz band – 5 blocks, respectively in the 1800 MHz band – 3 blocks, valid between 1 January 2013 and 5 April 2014. Orange Romania will benefit from licences for a spectrum portfolio which is by 84% larger than currently, against an amount of €227,135,002, representing the licence fee.

RCS&RDS won 1 block in the 900 MHz band, valid from 2014 through 2029, for which it will pay 40,000,000 €, representing the licence fee. With this licence in the 900 MHz band, RCS & RDS increased its spectrum portfolio by 29%.

Vodafone Romania obtained 2 blocks in the 800 MHz band, 2 blocks in the 900 MHz band, 6 blocks in the 1800 MHz band and 1 block of 15 MHz in the 2600 MHz (TDD) band, valid from 2014 through 2029. As well, Vodafone Romania won short-term licences in the 900 MHz band – 5 blocks, respectively 3 blocks in the 1800 MHz band, valid between 1 January 2013 and 5 April 2014. Vodafone Romania will benefit from licences for a spectrum portfolio which is by 78% larger than currently, against an amount of €228,520,034, standing for the licence fee.

2K Telecom won 2 blocks of 15 MHz in the 2600 MHz (TDD) band, valid from 2014 through 2029, for which it will pay €6,601,000, standing for the licence fee. 

The licence fees, which totalise €682,136,036, are to be paid until 30 November 2012, respectively until 30 June 2013, depending on the frequency blocks.

“With this auction, the mobile communications in Romania have entered a new era: the spectrum resources available to the operators grow by 77% and allow for introducing the 4G technology, whereas the 900 MHz band is more efficiently distributed. For operators, the results of the auction open the door to additional business opportunities and innovation, ensure the security of investments and an exceptional efficiency as regards the use of spectrum. For users, the auction brings access to 4 national networks, better coverage, higher data transfer speeds, more and better services provided at competitive prices, in general, all this in the context of a healthy competition. Due to all these reasons, I would say that, on our 10th celebration since the establishment of the regulatory authority in communications, we have successfully concluded the first auction which allows 4G in the Central and Eastern Europe”, Mr. Catalin Marinescu, the president of ANCOM, said during a press conference organised in order to announce the results of the spectrum auction.

The president of ANCOM has also announced that three of the spectrum winners, Cosmote Romanian Mobile Telecommunications, RCS & RDS and 2K Telecom, have undertaken the obligation to host MVNO, as well as that, for the first time ever in Romania, the operators that cover 30% of the population with their own radio access network may benefit from national roaming for at least three years. Moreover, the president of ANCOM has shown that, following this auction, 676 rural localities currently underserved with broadband mobile communications networks are to benefit with priority from coverage with HSPA, HSPA+ or LTE networks.