The Communications Commission has announced a second auction for the implementation of 5G mobile internet. 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 an auction for the implementation of 5G. The first such auction took place a year ago, with only Cellfie Mobile taking part.

The auction will be 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 will announce 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. 

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.  

Operators who are assigned the aforementioned frequencies must gradually cover the densely populated areas of Georgia, tourist areas, ports, airports, railways and highways with 5G network over the next 7 years. The operators must use the EU technical norms for building 5G networks, which will ensure high quality and safety of the networks.

The dates of the auction are as follows: 12:00 on 9 October 2024 for combined lots N1 and N2; 12:00 on 10 October 2024 for separate lots N3 to N8; 12:00 on 11 October 2024 for separate lots N9 to N17; and 12:00 on 12 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. 

Details about the terms and obligations of the 5G auction can be accessed from today on the official website of the Communications Commission ( www.comcom.ge ).