Magticom will be the sole participant in the second auction announced by the Communications Commission for the implementation of 5G mobile internet. The company has applied for one combined lot and separate lots in the 700, 800, 3410-3710 and 2600 MHz frequency bands. The combined lots will be auctioned on 18 October, the separate lots in the 700, 800 and 3410-3710 MHz frequency bands on 21 October, and the separate lots in the 2600 MHz range on 22-23 October.

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

Unlike last year’s aution, 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). 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.

Cellfie Mobile was the only operator who took part in last year’s 5G auction and obtained the license to implement 5G technology. The company has already implemented 5G in Zugdidi, Bakuriani, Gudauri, Batumi, Kobuleti, Shekvetili, Gonio and Kvariati, and actively continues to expand coverage. 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 winners will be obliged to gradually cover densely populated settlements, tourist areas, ports, airports, railway stations and main highways in Georgia with 5G networks over the next 7 years. The operators must build the 5G networks in accordance with the technical norms of the European Union, which will ensure the quality and security of the networks. 

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.