Ancom - 20 iunie 2011

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ANCOM Proposes a Strategy for the Development of BWA Systems in the 3400-3800 MHz Frequency Band

20.06.2011

ANCOM has published on its website, for public consultation, a Strategy Paper on the national implementation and development of BWA systems in the 3400 – 3800 MHz frequency band for 2011 – 2020, which includes the principles, conditions, procedure of granting the rights to use the spectrum in this band for broadband wireless services, as well as the method for its refarming.

There are seven providers currently operating in the 3410 – 3600 MHz band, with five of them holding national licences, three local licences for data transmission services on fixed wireless access support (FWA), and one provider holding both types of licences. Only one provider that holds a licence for a Broadband Wireless Access (BWA) national network operates in the 3600 – 3800 MHz band. All national licences expire at the end of September 2013, except for the licence in the 3600 – 3800 MHz band, which expires in July 2011. Local licences in the 3410 – 3600 MHz band have different validity periods, expiring in: June 2011, August 2011, January 2015, December 2015.

As for the national licences, ANCOM proposes to launch in 2012 a beauty contest procedure for three national licences in the 3410 – 3600 MHz band and four national licences in the 3600 – 3800 MHz band. The beauty contest will take place in two phases: a preliminary phase during which the tenderers will submit to the Authority final intention requests for the purchase of a licence in the 3.5 GHz band or of a licence in the 3.7 GHz band, and an actual selection phase that will take into account the outcomes of the first phase and will take place only if the number of requesters is higher than the number of licences available in these bands. If the number of requesters is lower or equal to the number of available licences, the offers will no longer be assessed and the licences will be directly awarded to the requesters. 2x21 MHz frequency sub-bands will be allotted by means of the national licences to be awarded in the 3410 – 3800 MHz band.

The county licences will be awarded in 2014, when ANCOM will allot in each county, by beauty contest, three licences for the use of radio frequencies for the provision of broadband access electronic communications public networks and services. 2x7 MHz frequency sub-bands will be allotted by means of the county licences to be awarded in the 3410 – 3600 MHz band.

The national licences will be awarded for a 10-year period and will encompass minimal coverage obligations, on development phases of 1 year, 3 years or 5 years from the issuance date. The county licences will be awarded for an 8-year period and will encompass minimal coverage obligations, on development phases of 1 year, 2 years and 3 years from the issuance date. The coverage obligations will include the priority coverage of a certain share of the low urban and rural areas (resulted in the number of cities and communes which need to be covered).

The conditions ANCOM proposes to impose, related to both the bandwidth and the limitation of the spectrum amount an operator may detain, are aimed at avoiding the risk of wasting or excessively fragmenting the radio spectrum allotments, as well as at ensuring the principle of technological neutrality and attracting on the Romanian market competitors that hold the necessary financial, technical and administrative capacities, in order to quantify to the largest extent the potential of these frequency bands.

The beauty contest procedure was identified by ANCOM as the most suitable one for awarding these licences since it ensures the continuity of the provision of these services to the end-users. The tendered bands are adjacent bands, complementary to the provision of Internet access services in lower bands and offering high capacity in locations with numerous requests.

Furthermore, the 3410 – 3800 MHz frequency band offers higher flexibility as to the data transport services via high capacity flows. By introducing broadband wireless services in these bands, ANCOM envisages, among others, increasing the penetration of broadband Internet access services and developing the national radiocommunication infrastructure with a view to bridge the digital divide between the urban and rural areas.

The DraftStrategy Paper on the national implementation and development of BWA systems in the 3400 – 3800 MHz frequency band for2011 – 2020is available for consultation on the ANCOM website, here. The interested persons are invited to send their comments and suggestions, by 14.07.2011, at the ANCOM headquarters in 2 Delea Noua Street, Bucharest 3, or directly to the ANCOM Registry Office. Comments and recommendations may also be sent by fax to +40 732 845 404 or by e-mail to consultare@ancom.org.ro.