July 28, 2023 18:30

Marticom and Silknet Decline to Participate in the 5G Auction – the New Technology will be Implemented by Cellfie

Cellfie Mobile will be the only operator participating in the 5G auction announced by the Communications Commission. The company applied for one combined lot, two 2600 MHz lots and one 1800 MHz lot. ComCom had announced an auction for 4 combined lots. Although the Commission took into account all objections and remarks expressed by Magticom and Silknet, both companies ultimately declined to take part in the auction. It is worth noting that these two operators own over 70% of the domestic telecom market, yet the new technology will be implemented without their involvement.

To obtain 5G frequencies, companies were initially required to allow mobile virtual network operators (MVNOs) access to their infrastructure, for which they would receive additional discounts. Magticom and Silknet stated that they would only take part in the auction if the Commission auctioned off at least one lot without the obligation to allow access for MVNOs. To ensure that the implementation of 5G proceeded smoothly, the Commission agreed to this request and announced auction for one combined and two separate lots without the aforementioned obligation. Nevertheless, the companies failed to fulfil the promise which they made both during the public session and internal working meetings, and declined to participate in the auction.

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.  

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 devised the terms of the auction in accordance with these recommendations. 

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. 

Detailed information about the terms and obligations of the 5G auctions can be obtained through the following link: https://www.comcom.ge/ge/yvela-siaxle/comcom-ma-5g-teqnologiis-dasanergad-auqcioni-gamoacxada.page

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