Spectrum auction in Romania sucessfuly closed

event 16.02.2023 person Admin

Romania

The National Authority for Management & Regulation in Communications (ANCOM), the telecoms oversight body in Romania, has officially concluded its 5G multi-band spectrum auction, with Orange Romania, Vodafone Romania, and RCS&RDS emerging as winning bidders. Collectively, they committed to a substantial payment of EUR 432.6 million (USD 448.3 million) for 420MHz of spectrum spread across the 700MHz, 1500MHz, 2600MHz, and 3400MHz-3800MHz bands, encompassing 75.6% of the available spectrum. Notably, Telekom Romania Mobile Communications, the country's fourth mobile network operator, chose not to participate in the bidding process.

Leading the bidding ranks, Orange Romania secured a noteworthy position by investing EUR 264.61 million. This secured them two blocks of 2×5MHz FDD spectrum within the 700MHz band, all eight blocks of 5MHz in the 1500MHz band, and an impressive 16 lots of 10MHz in the 3400MHz-3800MHz band. Vodafone Romania contributed a total of EUR 122.5 million, securing 2×5MHz of 700MHz FDD spectrum and ten blocks of 10MHz within the 3400MHz-3800MHz band. On the other hand, RCS&RDS was awarded four blocks of 2×5MHz of 2600MHz FDD spectrum and five lots of 10MHz in the 3400MHz-3800MHz band, with a total payment of EUR 45.5 million.

The user rights for the obtained spectrum will span different timeframes: 25 years for the 700MHz and 1500MHz bands, starting from January 1, 2023; 22 years for the 3400MHz-3800MHz frequencies, beginning on January 1, 2026; and the 2600MHz band rights valid from January 1, 2023, to April 5, 2029.

In terms of coverage obligations, the successful bidders are mandated to extend mobile broadband services to a minimum of 70% of the nation's population, encompassing key urban regions, highways, international airports, modernized railways, as well as 240 areas marked as having inadequate or no mobile coverage.

The EUR 432.61 million generated from the auction will be disbursed in installments. The first installment, amounting to EUR 119 million, is scheduled for December 8th, with the final payment of EUR 80.01 million slated for November 17, 2029.