ANCOM

Budapest, January 2014

Digital dividend - The First Romanian

Spectrum Auction

for Mobile Electronic Communications

Decision of the WRC-07

5.316B In Region 1, the allocation to the mobile, except aeronautical mobile, service on a primary basis in the frequency band 790-862 MHz shall come into effect from 17 June 2015 and shall be subject to agreement obtained under No. 9.21 with respect to the aeronautical radionavigation service in countries mentioned in No. 5.312. 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 698-960 MHz in Region 2 and the band 790-960 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)

790-862 FIXED BROADCASTING MOBILE except aeronautical mobile 5.316B 5.317A 5.312 5.314 5.315 5.316 5.316A 5.319

European Comission measures

790 791-796 796-

801

801-

806

806-

811

811-

816

816-

821 821 - 832

832-

837

837-

842

842-

847

847-

852

852-

857 862

Guard

band Downlink Duplex

gap Uplink

1MHz 30 MHz (6 blocks of 5 MHz) 11 MHz 30 MHz (6 blocks of 5 MHz)

1. Adopting a harmonised technical conditions of use of the 800 MHz band in Europe – DEC. 267/2010 - Comission Decision on harmonised technical conditions of use in the 790-862MHz frequency band for terrestrial systems capable of providing electronic communications services in the European Union

2. European Parliament DEC.243/2012/UE – 01.01.2013 – the date for Member States to release the band 790-862 MHz for broadband mobile services

Situation in Romania

Band 790-862 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.

2006 – at RRC06 Romania was planned 1 MUX in channels 61-69

2008 – a part of this band (790-830 MHz) was free for non-governamental usage

July 2013 – band 830-862 MHz was free for non-governamental usage

A Timely Needed Auction Expiring licences

2 “GSM” licences (900 + 1800 MHz) end-2012

1 “GSM” licence (900 + 1800 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)

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

The Auction Was Open, Ascending, Multi-band and Multi-round

Receiving the applications

Primary rounds

Additional round

Determine the winning offers and basic prices

Assignment round

Presentation of the outcomes, fee payment and licence awarding

Auction stage

Awarding stage

2

3

YES

NO

Demand > supply in at

least one band

Demand > supply in

at least one band

YES

NO

Qualification stage

1

Concrete blocks

Ab

stra

ct b

lock

s

Auction Calendar 2012 27 December 2011 adoption GO 111/2011

28 December 2011 decision of extending the “GSM” licences

14 March 2012 public consultation – document package

2 July 2012 invitation to the auction

14 August 2012 5 candidatures submitted

20 August 2012 all candidatures validated

10 September 2012 2 primary rounds

11 September 2012 1 primary round

14 September 2012 additional round 1

17 September 2012 additional round 2

21 September 2012 4 allocation rounds

24 September 2012 3 allocation rounds

• COSMOTE RMT

• ORANGE ROMANIA

• RCS & RDS

• VODAFONE ROMANIA

• 2K TELECOM

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

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

Allocation of the auctioned spectrum by bands & holders BEFORE THE AUCTION

Alocarea portofoliilor pe benzi & titulari DUPĂ LICITAŢIE

CMT ORO VOD RCS

5 MHz 5 MHz 5 MHz 5 MHz

Vodafone

2 x 10 MHz

RCS

2x5 Mhz

CMT ORO VOD RCS

5 MHz 5 MHz 5 MHz 5 MHz

2600 MHz

(TDD)

800 MHz

(FDD)

900 MHz

(FDD)

1800 MHz

(FDD)

2100 MHz

(FDD)

2100 MHz

(TDD)

2600 MHz

(FDD)

800 MHz

900 MHz

(FDD)

1800 MHz

(FDD)

2100 MHz

(FDD)

2100 MHz

(TDD)

2600 MHz

Vodafone

1 x 15 MHz

Neadjudecat

2 x 40 MHz (8 blocuri)

2K telecom

1 x 30 MHz

Orange

2 x 20 MHz

Vodafone

2 x 30 MHz

Orange

2 x 10 MHz

Neadju

decat

Vodafone

2 x 10 MHz

Orange

2 x 10 MHz

Cosmote

2 x 10 MHz

Orange

2 x 20 MHz

RCS & RDS Cosmote (Telemobil) Orange

Cosmote

2 x 25 MHz

Cosmote

2 x 10 MHz

Vodafone

2 x 15 MHz 2 x 14,8 MHz 2 x 14,8 MHz 2 x 14,8 MHz

2x5 MHz

30 MHz

NG

CMT

Vodafone

2 x 14,8 MHz

2 x 37,5 MHz

MApN

NG

20 MHz

MApN

135 MHz

2 x 15 MHz

RCS & RDS Cosmote (Telemobil)

2 x 14,8 MHz

Orange

2 x 14,8 MHz

Cosmote

2 x 12,6 MHz 2 x 12,4 MHz

Orange

2 x 12,4 MHz

Cosmote

2 x 10 MHz

Vodafone

2 x 12,4 MHz

Orange

2 x 12,4 MHz

NG

30 MHz

MApN

30 MHz

Vodafone

Allocation of the auctioned spectrum by bands & holders AFTER THE AUCTION

Not auctioned

Not auctioned

Thank you!

ancom@ancom.org.ro