ComCom Announces Auction to Implement 5G Technology

The Communications Commission has announced a second auction for the implementation of 5G mobile internet. Cellfie Mobile was the only company who took part in last year’s auction. As it is vitally important for the Commission to facilitate the implementation of new technologies, it took the request of operators into account and allowed them to participate in the second auction in order to implement 5G technology and provide customers with high-quality services.

The auction has been announced for 17 lots that include 700, 3410-3710 and 2600 MHz frequency bands. Additionally, 4 auctions will take place for 800 and 2100 MHz frequency band licenses. 

The Communications Commission has announced two auctions for two combined lots, including one specific and one abstract lot, that are similar in terms of coverage obligations and price. Both combined lots consist of bands of two different ranges on the frequency spectrum (700 and 3410-3710 MHz), and include identical coverage obligations for populated areas. Furthermore, license applicants for both combined lots will have the option of purchasing lots with or without the obligation to enable wholesale access to mobile virtual network operators (MVNOs). Unlike last year's auction, access for MVNOs will no longer be a mandatory requirement for applicants. This is due to the fact that the Communications Commission has deemed Magticom an operator with significant market power based on the results of the comprehensive study of the telecom sector, and imposed upon it the obligation of allowing MVNOs access to its network. In addition, Cellfie Mobile already assumed a similar obligation within the scope of last year’s auction. Therefore, the Communications Commission no longer considers it necessary to include mandatory MVNO access in the terms of the auction. However, both combined lots that include the obligation of allowing access to MVNOs come with a 20% discount on the initial fee for using the radio frequency resource. In light of the above, the starting price of each combined lot will be GEL 37,182,672. 

Apart from the four combined lots, the auction will also include 19 separate lots. The cost of the lots differs by frequency and bandwidth. The separate lot auctions will only be open to the winners of at least one of the combined lot auctions and companies that already have a license to use the radio frequency spectrum for the frequencies included in the combined lots. 

The starting prices of the separate lots are as follows: GEL 22,414,632 in the 700 MHz frequency band; GEL 14,768,040 in the 3410 – 3710 MHz band, GEL 26,974,740 in the 800 MHz band, GEL 5,866,112 in the 2600 MHz FDD band, GEL 2,933,056 in the 2600 MHz TDD band, GEL 1,466,528 for specific lots in the 2600 MHz TDD band, and GEL 15,063,020 in the 2100 MHz band. 

Companies wishing to participate in the auction can submit the necessary documents to the Communications Commission from 23 September until 7 October 2024.

The dates of the auction are as follows: 12:00 on 18 October 2024 for combined lots N1 and N2; 12:00 on 21 October 2024 for separate lots N3 to N8; 12:00 on 22 October 2024 for separate lots N9 to N17; and 12:00 on 23 October 2024 for separate lots N18 to N21.

The Communications Commission started actively working on implementing the 5G technology in 2020. The Commission determined the necessary parameters and conditions for the implementation of 5G in accordance with the decisions of the European Commission and the experiences of the European counterpart regulators, while the frequency resource fee was established together with experts from one of the ‘big four’ accounting firms, Ernst & Young. 

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.