Today, on December 29, at GNCC, the license for radio frequency spectrum usage in order to implement the fourth-generation (4G) broadband services was sold for 50 782 605 GEL. “Mobitel” Ltd was announced as a winner in the auction.

The 2x10 MHz section in 800 MHz range has been displayed in the auction and initial price of the license for the usage of the resource totaled 48 364 386 GEL. 1 bid during the auction equaled to 2 418 219 GEL - an initial value of 0.5% rounded to the whole number.

The Director of the company “Mobitel” Ltd Giorgi Tkeshelashvili confirmed to the Commission the readiness to pay the initial price of the license (48 364 386 GEL) and plus the cost of the bid (2 418 219 GEL), after which the “Mobitel” Ltd was declared as a winner by the Commission.

“Mobitel” Ltd is obligated to pay 20% license fee for the usage of radio frequency spectrum within one-month period to the State Budget of Georgia. After the document confirming the payment of above noted 20% is submitted to the Commission, within a week the Commission will issue a license to the company.

“Mobitel” LTd, besides its own interest in densely populated cities and territorial units, will be obligated to implement 4G broadband (internet) services before February 1, 2016 in those settlements (territorial units which have a name, administrative borders, territories and registered population,) where based on a recent census the population is less than 5000. The conditions are following:

It should be noted, that the Commission, starting December 25, has also begun the modification process of radio frequency spectrum licenses that have been already issued and/or are temporarily owned by operators in order to provide fourth-generation (4G) broadband services.

The licenses owned by “Magticom” Ltd, “Geocell” Ltd and “Mobitel” Ltd that have been issued in harmonized (800/900/1800/2100) MHz frequency ranges fell under modification.

License term is defined for the next 15 years, based on technological and service neutrality principle, allowing companies to implement the fourth-generation (4G) broadband services.

Ordered by the Commission, the consulting services to define the initial cost of available frequency resources in 800/900/1800/2100 MHz ranges were provided by PricewaterhouseCoopers Central Asia and Caucasus B.V Georgia branch. During the auction, the Commission used this method of calculation to determine the initial cost of 1 mega hertz available in harmonized ranges and will use the same methodology during the modification process of radio frequency spectrum licenses that have been already issued and/or are temporarily owned by operators.

The public hearing session regarding the modification of the licenses that are being temporarily owned by “Magticom” Ltd, “Geocell” Ltd and “Mobitel” Ltd is scheduled for January 28, 2015 at 16:00 pm. The Commission will make a decision in regards with an issue within 10 working days from the public hearing session.

The fourth generation (4G) broadband services will be available for the large part of Georgia’s population in the nearest future.