Press Releases

ANCOM to Tender the Frequencies of Orange, Vodafone and Cosmote by End-2013

30.11.2011

 
ANCOM has announced today the intention to organise, by end-2013, a tender for the entire frequency spectrum which is to become available in the 900 MHz and 1800 MHz bands, and to extend the validity of the rights of use held by Orange Romania and Vodafone Romania until the awarding of the new licences. The new rights of use are to become effective as of 6 April 2014, when the rights held by Cosmote in these bands also expire.  
Today, the Authority has published for consultation a draft decision on this matter, which also provides that, until 31 December 2012, Orange Romania and Vodafone Romania will have the obligation to release a cumulated sub-band of 2x5 MHz bandwidth from the 900 MHz band, as this will not affect the continuity of the services provided by the two operators.
The spectrum thus released will be allocated in 2012, through a selection procedure. This measure was identified as remedy following the studyregarding the impact the use of the 900 MHz frequency band for the supply of third generation electronic communication services using UMTS systems will have on the mobile communication market competition. The study showed that RCS&RDS is in a competitive disadvantage as opposed to the operators that hold spectrum in the 900 MHz band. The analyses conducted by the Authority and the consultations with the industry also showed that this is the most appropriate remedy to create a level playing field for all the undertakings on the mobile market.
Details such as those concerning the procedure for the frequency band allocation, the requirements of spectrum allocation and use, and the fees due for licence extension or awarding, are to be established subsequently by specific legislative documents.
Taking into account that the new telecom package has not been transposed into the Romanian legislation thus far and that the non-adoption of this decision this year endangers the continuation of the provision of mobile communications services to about 16 million users, ANCOM proposes a 10-day term for the submission of comments and suggestions.
The draft decision on the award of the rights to use the frequencies in the 880-915 MHz/925-960 MHz and 1710-1785 MHz/1805-1880 MHz bands is available for consultation on the ANCOM website, here. The interested persons are invited to send their comments and suggestions, by 09.12.2011, to 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.
 
Current allocation of the 900 and 1800 MHz bands
 
VODAFONE
ORANGE
COSMOTE
900 MHz
2 x 12.4 MHz
Valid until 31.12.2011
2 x 12.4 MHz
Valid until 31.12.2011
2 x 10 MHz
Valid until 5.04.2014
1800 MHz
2 x 12.4 MHz
Valid until 31.12.2011
2 x 12.4 MHz
Valid until 31.12.2011
2 x 12.6 MHz
Valid until 5.04.2014

The licences for the use of frequencies in view of the provision of second generation digital mobile communications services in the 890-915 MHz/935-960 MHz bands were awarded at the end of 1996 to the companies which now operate under the names of Orange Romania and Vodafone Romania, for a term of 15 years, and these expire as of 31 December 2011. Each of the two operators paid the amount of USD 75 million.
The rights to use the frequencies in the 1710-1785 MHz/1805-1880 MHz bands were awarded at the end of 1998 to the company which now operates under the name of Cosmote, for a term of 15 years. These rights expire as of 5 April 2014. The operator paid USD 53 million.
These licences enable the operators to provide voice and data services, as well as 3G services (starting 2010).
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