Cristin Popa (ANCOM): The sale of the entire spectrum at the 5G auction could bring 692 million Euro to the state budget

The Romanian state budget could obtain 692 million Euro by selling the entire spectrum at the 5G auction, according to Cristin Popa, executive director of Monitoring and Control from the Authority for Administration and Regulation in Communications (ANCOM).

“ANCOM has a rather busy period and one of the main objectives is to finalize the allocation of the frequency spectrum for the development of 5G technologies. We cannot make a smart city, we cannot make digitization if we do not have a performing and healthy infrastructure. The bands we are auctioning are suitable for 5G development. Both the low 700 MHz bands, where greater coverage can be ensured, and the 3.5 MHz bands, where the capacity speaks for itself, are proposed for allocation,” Cristin Popa (ANCOM) said during Smart Transformation Forum organized by The Diplomat-Bucharest.

At the beginning of this week, we published the specifications for the auction, and until October 27, the bids for the spectrum auction can be submitted. After November 8, we will see if there is competition on certain bands, let’s do the bidding procedure, effectively on each block of frequencies. We are auctioning a quantity of 555 MHz, in 700 MHz, 1500 MHz, 2600 MHz and 3.5 MHz. We believe that the spectrum that we put up for auction is enough for each operator to take what he needs for the strategy he has for the development of the respective network.

As a budget, if the entire spectrum were allocated, which has never happened at any auction, at the minimum price per frequency block, the amount would be 692 million euros, money that comes to the state budget. For example, the 2600 band now put up for auction is the rest of the band from previous auctions. The licenses are allocated for 22 years – the 3.5 MHz, which enters into force in 2026, and for 25 years.

We are confident, we are on the straight line. Unfortunately, the road to the publication of the specifications for 5G was quite difficult, because first, we had to transpose Romania’s Memorandum with the strategic partner USA, in which we had to point out certain security elements. Later, we had to transpose the Communications Code into the primary legislation, and we had a lot of debates. Finally, last week the Government approved the Decision that gives us a clear path for allocating the necessary spectrum.”

Full recording of the conference: