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ANCOM Launches the Fourth DTT Auction

15.12.2016

On 15 December 2016, The National Authority for Management and Regulation in Communications of Romania (ANCOM) has launched a new auction for awarding the two national, 26 regional and 18 local digital terrestrial television (DTT) multiplexes unawarded in the previous selection procedures.
 
A digital multiplex is a group of radio broadcasting and television programmes, additional multimedia services and other associated identification data transmitted from the emission stations to the end-users by terrestrial radio means, using digital modulation within the limits of a standard television channel/frequency block. National multiplexes will cover the whole country with digital terrestrial television services, whereas each of the regional and local multiplexes will serve a specific allotment, which may cover one county or one locality.
 
Participation conditions
In order to take part in the auction, the interested persons must purchase the Terms of Reference, costing RON 4,000. The Terms of Reference, available – in Romanian – on the ANCOM website, may be purchased starting 15 December 2016 at the ANCOM headquarters in Bucharest, 2 Delea Noua Street, Sector 3, or, on a buyer’s request, it may be sent to the respective buyer as hardcopy or in electronic format, upon presentation of the document certifying that the value for the respective documentation has been paid and of the mandate, in original, of the person delegated to take it. The Terms of Reference can be obtained Monday to Thursday, from 09.00 to 16.00 hours, and Fridays from 09.00 to 14.00 hours.
In order to participate in the auction, an applicant must be a Romanian or foreign legal person (company), it must accurately submit all the required documents, the operation period provided in the articles of incorporation should be at least 10 years from the entry into force of the radio frequencies usage rights. A bidder for the national multiplexes must have an average turnover for the past 3 years or for the period since its establishment - if the company is younger than three years - of minimum EUR 2,000,000. Companies belonging to the same group cannot take part in the auction separately.
 
The auction procedure
As established by the strategy on the transition from analogue terrestrial television to digital terrestrial television approved by the Government of Romania, the multiplexes shall be awarded by a competitive selection procedure. This means that each bidder should submit an initial offer indicating the categories and the number of multiplexes they wish to acquire. Where the demand exceeds the number of multiplexes available, primary rounds will be organised in case of the multiplexes for which the demand exceeds the offer. For the rest of the categories, the winners the winners will be designated based on the initial offer.
After the winners and the prices for each targeted multiplex have been established, the auction may continue by an allocation round, where the multiplexes will be awarded to the winners depending on the additional amounts they are willing to pay for the assignment of a certain frequency.
The minimum licence fee, i.e. the starting price for each national multiplex is EUR 300,000, whereas for the regional and local multiplexes it ranges from EUR 1,000 for a multiplex awarded within a locality that is not a county capital and EUR 10,000. The licence fees were established by the Government in February 2014.
All the multiplexes will be awarded for a 10-year period. The winners will be able to start the provision of commercial television broadcasting services upon obtaining the licence from ANCOM and will have to put into operation at least 36 transmitters within 2 years from the licence issuance for the national multiplexes, and at least one transmitter within one year in each assignment area, for regional or local multiplexes.
 
Calendar
The interested persons can request clarifications regarding the Terms of Reference until 16 January 2017 and submit an offer until 27 January 2017. On 31 January 2017, the Authority will announce the bidders qualified in the superior stages of the selection procedure, and on 13 February 2017 ANCOM will announce the first winning offers and whether the auction stage needs to be organised for certain categories of multiplexes.
The auction documentation is available – in Romanian only - on ANCOM’s website, here.
 
Additional information:
Following the three auctions organized so far, three national multiplexes have been awarded to the National Broadcasting Company, this company winning the free to air multiplex and two other multiplexes in the UHF band, for EUR 1,020,002, i.e. licence fee.Moreover, twelve regional multiplexes and one local multiplex have been awarded. Further information on the three auctions is available on ANCOM’s website, here.
 

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