ANACOM approved the draft regulation of the auction for allocation of frequency user rights in the 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz and 3.6 GHz bands. In addition to the relevant bands for 5G (700 MHz and 3.6 GHz band), the auction includes other bands of interest for the mobile operation (900 MHz, 1800 MHz, 2.1 GHz and 2.6 GHz) that enable supporting new operations and/or complementing existing operations.
1. Reserve prices
The established reserve prices, presented in the table below, seek to ensure that the frequency user rights are allocated to the companies that most value the spectrum, also taking into account the different requirements and conditions that are associated to the auctioned spectrum. To this end, the economic valuation of the national spectrum and the reserve prices established in other European countries were considered relevant, with the latter having proved to be significantly lower, on average, than the corresponding final prices.
|
Bands |
Number of lots |
Reserve prices per lot |
|
700 MHz |
6 lots of 2 x 5 MHz |
19.20 |
|
900 MHz |
1 lot of 2 x 5 MHz |
30.00 |
|
900 MHz |
4 lots of 2 x 1 MHz |
6.00 |
|
1800 MHz |
3 lots of 2 x 5 MHz |
4.00 |
|
2.1 GHz |
1 lot of 2 x 5 MHz |
2.00 |
|
2.6 GHz |
2 lots of 2 x 5 MHz |
3.00 |
|
2.6 GHz |
1 lot of 25 MHz |
3.00 |
|
3.6 GHz (with restrictions up to 2025) |
6 lots of 10 MHz |
0.84 |
|
3.6 GHz (with restrictions up to 2025) |
4 lots of 10 MHz |
0.94 |
|
3.6 GHz |
30 lots of 10 MHz |
1.23 |
In this context, in relation to the 700 MHz e and 3.6 GHz bands, the prices were established based on the average of the reserve prices of auctions already held in Europe, since 2018, with these prices having been adjusted considering the existing population in Portugal, purchasing power parities and the duration of the frequency user rights.
For the rest of the frequency bands (900 MHz, 1800 MHz, 2.1 GHz and 2.6 GHz), as these bands had already been provided under the multi-band auction held between 2011 and 2012, the decision was taken to maintain the same values as those established at that time for the respective reserve prices.
The payment of the final prices of the spectrum allocated to the 700 MHz, 3.6 GHz and 900 MHz bands can be carried out in a different way, at one third of the respective value, up to a period of 5 years.
2. Caps to the acquisition of spectrum
The companies that participate in the auction can acquire the amounts of spectrum required for their business; nevertheless, it was considered essential to determine caps for the acquisition of spectrum, as had occurred in previous procedures. In this case, it is deemed that these caps should be established in relation to the relevant bands for 5G, in which the demand could be more significant, thus preventing situations of hoarding and, at the same time, ensuring that all stakeholders can access the amount of spectrum they consider suitable for the operations they wish to develop. Thus, each company can acquire up to 2 x 10 MHz in the 700 MHz band and up to 100 MHz in the 3.6 GHz band.
3. Conditions associated to the use of the spectrum
Considering the public interest objectives pursued by ANACOM, which correspond to the need to promote greater competition in the electronic communications market, contribute to the users gaining maximum benefit in terms of choice, price and quality of service, encourage the effective and efficient use of the spectrum, and promote social and territorial cohesion, ANACOM decided that it was fundamental to include in the auction a series of measures that would enable assuring conditions for the market entry of new entities and development of the existing operations (see Annex 2).
a) Network access requirements and conditions for new entrants
In order to generate a positive impact on the competition and on the end-users, the draft regulation of the auction includes a spectrum reservation for new entrants, considered entities that do not hold frequency user rights in bands allocated for terrestrial electronic communications services. New entrants shall be given the possibility of, in a specific bidding stage, to acquire frequency user rights in the 900 MHz and 1800 MHz bands, although they are no barred from being able to bid for the remaining spectrum in the main bidding stage. New entrants shall also benefit from a 25% discount on the price of the spectrum that they acquire in the bands in question.
Furthermore, and with a view to establishing conditions that contribute to the emergence of new operations for its sustainability, the draft regulation stipulates the imposition of requirements relative to network access for mobile virtual network operators (MVNO) and/or national roaming for companies that acquire significant amounts of spectrum and already hold frequency user rights in bands allocated for terrestrial electronic communication services. These requirements benefit i) in the case of MVNO, entities that do not hold frequency user rights in the bands allocated for terrestrial electronic communication services; and ii) in the case of national roaming, new entrants, that by the end of the auction, henceforth hold, alone or together, up to 2 x 5 MHz in the 700 MHz band, 2 x 5 MHz in the 900 MHz band, 2 x 15 MHz in the 1800 MHz band and 50 MHz in the 3.6 GHz band.
b) Requirements of coverage through mobile broadband with a minimum debit of 100 Mbps
In view of the need to mitigate shortcomings in terms of the coverage and capacities provided by the existing mobile networks, to ensure the country's economic and social cohesion, moving towards meeting the expectations of the population and national economic sector, as well as safeguarding the national and European objectives defined for mobile broadband, it was considered necessary to associate the acquisition of frequency user rights in the 700 MHz and 3.6 GHz bands, requirements of providing a mobile broadband service with a minimum debit of 100 Mbps, to 85% and 95% of the country's total population, respectively, by the end of 2023 and 2025, as well as other coverage requirements established in relation to the main road, railway and light railway networks and to the population of low-density municipalities and parishes (see the map in Annex 1) and of the Autonomous Regions of Azores and Madeira.
In order to foster the social inclusion and competitiveness of the country and all its regions, but without neglecting the investment levels that could be associated to 5G, the requirements related to the coverage of low-density municipalities and parishes and of the Autonomous Regions of Madeira and Azores can be ensured through national roaming agreements. These requirements are imposed on companies that acquire 2 x 10 MHz in the 700 MHz band and that, before the auction, already hold frequency user rights in bands allocated for terrestrial electronic communications services. Coverage requirements, albeit more limited, are also applicable to companies that do not hold these rights, but which later acquire in the auction 2 x 10 MHz in the 700 MHz band.
c) Requirements to strengthen voice signal
The companies referred to in the previous subparagraph, that already have user frequency rights in bands allocated for terrestrial electronic communications services, are also required to strengthen the voice signal in order to enable a coverage that is considered good in 95% of national territory.
d) Requirements of network development for provision of services compatible with 5G
The requirements related to network development, in force from 2023 onwards, are associated to the acquisition of at least 50 MHz in the 3.6 GHz band and involve the installation of macro base stations or outdoor small cells that enable the provision of services compatible with 5G, including ultra-high speed band services with a view to gigabit connectivity, namely in low-density municipalities and in all the municipalities of the Autonomous Regions of Azores and Madeira, as well as the submission of proposals for requests made by SMEs, large companies, universities and other higher education establishments, entities of the national scientific and technological system, hospitals, health centres, ports and airports, with a view to the installation of these base stations.
e) Requirements in the area of security
Concerning issues of security and integrity of the electronic communications networks and services, the companies that eventually hold user frequency rights will be subject to the measures that, at a national or European level, are endorsed by the competent entities taking into account, namely, i) the Commission Recommendation on Cybersecurity of 5G networks; ii) the transposition of the European Electronic Communications Code; and iii) the implementation of the toolbox presented in the publication "Cybersecurity of 5G networks - EU Toolbox of risk mitigating measures, as established in the European Commission Communication on "Secure 5G deployment in the EU – Implementing the EU toolbox".
4. Auction operation rules
The auction will be supported by an electronic platform, taking place in various sequential stages, including the qualifying stage, the bidding stage for new entrants, the main bidding stage, the consignment stage and the stage of allocation of user frequency rights. The auction model is of simultaneous bidding, ascending, open and with multiple rounds, and includes a bidding stage for new entrants which has a simple clock operation, in which the bidder submits a bid indicating the number of lots desired, taking into account the price of the lots indicated by ANACOM.
5. Public consultation
Pursuant to article 10 of its Statutes and articles 98 and following of the Code of Administrative Procedure, ANACOM discloses information on this project to the Government and publishes it on its institutional website and in the 2nd series of Diário da República, thus providing for the intervention of the Government, the regulatory entities and other entities that receive its activity, associations of users and consumers of generic or specific interest in the area of communications, as well as users and the public in general. In this context, contributions, in writing and in Portuguese, can be sent during a period of 30 business days, counted from the date of publication in Diário da República (Official Journal), planned to take place on 12.2.2020, preferably by email to the address reg.leilao@anacom.ptmailto:reg.leilao@anacom.pt.
6. Calendar
The approval of the draft regulation, despite having occurred a few days in arrears in relation to the indicative calendar disclosed last October, due to the need to take into account in the draft regulation the content of the European Commission Communication of last January on "Secure 5G deployment in the EU - Implementing the EU toolbox", neither compromises nor requires any alteration of the indicative time limits of the following stages with a view to the allocation of the pertinent licenses for 5G (700 MHz and 3.6 GHz) and other licenses (900 MHz, 1800 MHz, 2.1 GHz and 2.6 GHz).
Consult:
- Consultation on the draft Regulation of the Auction for allocation of frequency user rights in the 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz and 3.6 GHz bands https://www.anacom.pt/render.jsp?contentId=1508701
- Notice no. 2385/2020, published on 12 February https://www.anacom.pt/render.jsp?contentId=1507542
- Approval of the draft regulation of the auction for allocation of user frequency rights in the 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz and 3.6 GHz bands https://www.anacom.pt/render.jsp?contentId=1508641
