The Communications Commission has announced an auction for the implementation of fifth-generation mobile internet (5G). The auction will include 24 lots for 700, 3400-3700 and 2600 MHz frequency bands. Applications by prospective licensees will be accepted from 09:00 on July 12 until 17:00 on uly 28, 2023.

Auctions for lots 1 and 4 will take place at 12:00 on August 14, 2023. Lots 5 and 10 will be auctioned at 12:00 on August 16, 2023, lots 11-21 at 12:00 on August 18, 2023, and lots 22 and 24 at 12:00 on August 21, 2023.   

5G is a new generation of wireless internet technology that will significantly increase mobile internet speed compared to the existing technologies, decrease interruptions and take key sectors such as communications, healthcare, education, business, agriculture and infrastructure to a new level, which will inturn strengthen the country’s economy. 

When building 5G networks, operators should be guided by the technical norms defined by the European Union, which will ensure high quality and security of the network. Companies that obtain the necessary frequency for the implementation of 5G will have a duty to allow Mobile Virtual Network Operators (MVNOs) to access their network. Specifically, license holders must conduct negotiations with all the operators wishing to access the relevant network on fair and non-discriminatory terms. Furthermore, taking into account the views of interested parties and ensuring wider choice, the Communications Commission has decided to announce one lot without the duty to admit a mobile virtual network operator. 

The Communications Commission has announced four auctions for four combined abstract lots that differ in coverage obligations and price. All four combined abstract lots consist of bands of two different ranges on the frequency spectrum and assume different obligations to cover populated areas. One of the four lots will be auctioned without the duty to allow access to a MVNO, which results in a different initial fee for using the radio frequency resource. The initial fee will be GEL 6,230,000 for the first combined lot, GEL  2,530,900 for the 2nd combined lot, GEL 2,593,800 for the 3rd combined lot, and GEL 2,656,700 for the 4th combined lot. 

Operators who obtain the given frequencies will be obliged to gradually cover densely populated areas of Georgia, tourist areas, ports, airports, railways and main highways with the 5G network over the next 3-7 years. Frequencies of 2600 and 3600 MHz provide several times the speed of the internet in large settlements, while frequencies of 700 and 800 MHz will mainly be used to cover large areas with lesser population density. 

In addition to the 4 combined lots, auctions have also been announced for 20 separate lots. All lots are priced differently depending on the frequency spectrum range and bandwidth. Only the the winner of at least one of the auctions announced for the combined lots will have the right to participate in the auctions for separate lots. 

In 2020 the European Commission recommended to its member states that after the end of the Covid-19 pandemic, in order to develop broadband infrastructure and mobile networks, they should take effective decisions that ensure increased access to the 5G radio frequency spectrum, timely issuance of licenses and financial discounts. The Communications Commission adopted the recommendations of the European Commission and developed an amendment, based on which, the possibility of obtaining a discount for the use of the radio frequency spectrum increased from 5%-20% to 80%. 

The Communications Commission started actively working on the implementation of 5G technology back in 2020. The necessary parameters and conditions for the introduction of 5G were determined by the Commission taking into account the decisions of the European Commission and the experience of European regulators. The frequency resource fee was calculated with the help of experts from Ernst & Young. 

All interested parties can obtain detailed information about the terms and obligations of the 5G auctions on the official website of the Communications Commission (www.comcom.ge ).