The Communications Commission has begun public consultations with a view to organising an auction for the installation of  5G internet. The purpose of public consultations is to give all stakeholders the opportunity to express their opinion about the terms of the auction before its announcement. The auction will include 23 lots of 700, 3400-3700 and 2600 MHz frequency bands. Additionally, an 800 MHz band will be auctioned off.

5G is the new generation of wireless internet technology that will significantly increase the speed of mobile internet, reduce delays and, together with the communication sector, bring vital industries such as healthcare, education, business, agriculture, infrastructure and others to a completely new level, thereby strengthening the country's economy. 

Operators who build 5G networks are guided by the technical norms defined by the European Union, which will ensure high quality and security of the network. Auction winners will be required to develop the network, as well as allowing mobile virtual network operators (MVNOs) access to their own networks. Specifically, license holders will be obliged to conduct negotiations with all MVNO operators wishing to access the relevant network on fair and non-discriminatory terms. This is a necessary prerequisite for obtaining a 5G frequency on all lots. 

The Communications Commission will announce 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 include different coverage obligations for populated areas. Therefore, the starting fees for using the radio frequency resource are different. The starting fee for the first combined lot is GEL 4,984,000, the second combined lot – GEL 2,530,900 the third combined lot – 2,593,800, and the fourth combined lot – GEL 2,656,700. 

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 3-7 years. 2600 and 3600 MHz frequencies will increase internet speed by several times in large population centres, while 700 and 800 MHz frequencies will mainly be used in sparsely populated large areas. 

Apart from the four combined lots, the auction will also include 19 separate lots. The cost of the lots differs by frequency and bandwidth. Only the winners of at least one of the four combined lot auctions can take part in the separate lot auctions. 

To facilitate rapid and effective development of technologies, in 2020 the European Commission made a recommendation to the EU member states to take effective decisions post-pandemic to develop broadband infrastructure and mobile networks through increased access to the use of the radio frequency spectrum intended for 5G, timely issuance of licenses, and provision of financial benefits. The Communications Commission adopted the European Commission's recommendation and devised an amendment that increased the possibility of using the radio frequency spectrum at a discounted rate from 5%-20% to 80%. 

The Communications Commission started actively working on implementing the 5G technology in 2020. To allocate the frequencies for implementing 5G, the Commission published a consultation document and shared its vision about holding the auction. The document includes detailed information about the terms and duties of the auction, including the frequencies available for 5G services, initial fees, lots, commencement of operations, repayment and other obligations. The Communications 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.

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 ).