The battle begins today in the most important telecom tender of the next 15 years

Newsroom 10/09/2012 | 08:25

Today marks the start of the most important event for the Romanian telecom industry.

The tender is taking place at the headquarters of the National Authority for Administration and Regulation in Communications (ANCOM) where the representatives of the contenders have already arrived.

The telecom operators that have enrolled in the tender are 2K Telecom, Cosmote Romanian Mobile Telecommunications, Orange Romania, RCS & RDS and Vodafone Romania. Even though Romanian authorities have repeatedly stated that the tender will be open for new players since this would have a positive effect by increasing competition, no new players have submitted their application.

The final results should be announced in October, during which time operators are bound by regulations to refrain from making comments on the course of the tender.

STARTING PRICES

Licenses allocated for 15 years (2014-2029)

  • EUR 35 million per block of spectrum in 800 MHz
  • EUR 40 million per block of spectrum in 900 MHz
  • EUR 10 million per block of spectrum in 1800 MHz
  • EUR 4 million per duplex block of spectrum in 2600 MHz
  • EUR 3 million per simplex block of spectrum in 2600 MHz
    Licenses allocated for 15 months

 

 

  • EUR 3.4 million per block of spectrum in 900 MHz
  • EUR 800,000 per block of spectrum in 1800 MHz

There are several reasons for which the tender has been expected with anxiety by the actors in the telecom industry. First and foremost, it sets the foundations of the telecom market in Romania for the next 15 years. The operators will now be fighting tooth and nail for obtaining the desired spectrum: according to reports, each operator will go for a mix of the frequencies, but what is at stake is obtaining the frequencies that will allow them to introduce 4G services on the Romanian market.

Secondly, the tender is important because of its span: it is for the first time when such an extensive event is organized on the Romanian market.

Last but not least, it is important because the Romanian state can greatly benefit from it. Thus, the state can cash in as much EUR 700 million from the tender. However, the money will not go to the development of the sector as the Romanian government announced that all the proceeds from the tender will go to agriculture.

SPECTRUM ON SALE

* Granted for 15 years, starting April 6, 2014

42 duplex blocks of 5 MHz each:

  • 6 blocks in 800 MHz
  • 7 blocks in the 900 MHz
  • 15 blocks in 1800 MHz
  • 14 blocks in 2600 MHz

3 simplex blocks of 15 MHz each in 2600 MHz

*Granted for 15 months, expire on April 5, 2014

  • 5 duplex blocks in 900 MHz
  • 6 duplex blocks in 1800 Mhz

    Otilia Haraga

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