Romania

[RO] The First Frequency Spectrum Tender in Romania

IRIS 2012-2:1/34

Eugen Cojocariu

Radio Romania International

The Autoritatea Naţională pentru Administrare şi Reglementare în Comunicaţii (National Authority for Administration and Regulation in Communications - ANCOM) will, in 2012, open for tender all radio frequencies available in the 900 and 1,800 MHz bands, currently used by the most important mobile communications providers in the Romanian market, Cosmote, Orange and Vodafone (see IRIS 2011-1/45).

The decision was issued on 28 December 2011, the day after the Romanian Government’s transitory decision to prolong for one year the licences of the mobile telephony providers Orange and Vodafone, which would have expired on 31 December 2011. The decision was taken in order to ensure the continuous provision of mobile communications services. Each provider has to pay for this prolongation a tax of EUR 6.4 Mio, calculated on the basis of the initial costs of the licences, multiplied by the inflation rate.

ANCOM has decided that the new licenses will enter into force on 1 January 2013, for the bands currently owned by Orange România and Vodafone România and on 6 April 2014, for the bands currently owned by Cosmote. The initial licences were granted for 15 years in 1996 and 1998, respectively. On the other hand, ANCOM will undertake the necessary measures to free and open for tender the 800 and 2,600 MHz bands, currently partially used by the Ministry of National Defence.

ANCOM stated that the solution to grant radio spectrum rights of use in the 900 MHz and 1,800 MHz bands by a tender procedure fully complies with the relevant European legislation with regard to the allocation of spectrum resources as well as with national legislation. Romania is already covered by several mobile communications networks, the penetration has reached 110%. ANCOM’s President considers the tender will allow new competitors to enter the Romanian market as well.

The tender will take place during the first half of 2012 and the Authority will develop and submit to public consultation a detailed tender plan.