14 frequency packages were awarded – total auction proceeds are almost 25 million euros – regulatory authority enables “sustainable” use for the first time
Vienna (OTS) – The Telekom Control Commission concluded the 3rd auction of 5G frequencies on March 26, 2024. As part of the two-stage award process, frequencies from the 26 GHz (7 blocks) and 3600 MHz (7 blocks) ranges were auctioned. The auction proceeds for the awarded frequency packages in the 26 GHz range amounted to a total of 16.2 million euros, and for the awarded frequency packages in the 3600 MHz range a total of around 8.5 million euros. The focus of the award was on efficient frequency use, ensuring effective competition and promoting innovative business models.
Allocation of the 26 GHz spectrum for nationwide use
A total of 7 blocks of 200 MHz each were allocated from the 26 GHz range. The minimum bid per block was 1,900,000 euros. The frequencies can be used until December 31, 2046. The successful bidders were A1 Telekom, T-Mobile and Hutchison. A1 acquired 2 blocks for a total of around 4.6 million euros. T-Mobile acquired 2 blocks for a total of around 4.6 million euros. Hutchison acquired 3 blocks for a total of around 6.9 million euros.
The 26 GHz band is characterized by very high bandwidths, but has a very limited range for mobile phone use. Frequencies in this spectrum are therefore particularly suitable for (temporary) coverage of areas with high user density and therefore very high capacity requirements (hot spots), but not for widespread use. Another area of application is industrial use and campus networks.
For the first time, in connection with coverage requirements, the regulatory authority is allowing these frequencies to be switched off between 00:00 a.m. and 05:00 a.m., provided there is no reduction in performance compared to daytime operations.
Allocation of frequencies in the 3600 MHz range for regional use
The frequencies in the 3600 MHz range are remaining frequencies from the 5G pioneer band allocation from 2019, which were not allocated in some regions due to a lack of demand from regional providers. They serve to connect end customers quickly and easily to the network infrastructure.
There were 7 blocks up for grabs, each with different frequency configurations for 7 different regions. The minimum bids for the 7 blocks totaled 2,330,500 euros. The successful bidders were A1 Telekom and T-Mobile. A1 Telekom acquired frequencies in 4 regions for a total of around 2.6 million euros. T-Mobile acquired frequencies in 3 regions for a total of around 5.9 million euros. The frequencies can be used until December 31, 2039.
Penalties for non-fulfillment of pension obligations
Each frequency assignment holder is obliged to operate a certain number of locations from a certain point in time using the frequency spectrum allocated to them in this procedure or to fulfill the coverage obligations associated with the assignment. The coverage obligations serve to ensure efficient use of the frequencies. Failure to comply may result in penalties.
The results of the third 5G auction are available on the RTR website https://www.rtr.at/TKP/was_wir_tun/telekommunikation/spectrum/procedures/26G_3600M_2024/Results.de.html published. Frequency allocation usually takes place within one month of the regulatory authority publishing the auction results.
About the RTR
“Rundfunk und Telekom Regels-GmbH” (RTR) is 100 percent owned by the federal government. Its core tasks are to promote competition in the telecommunications, postal and media markets and to achieve the goals defined in the KommAustria and Telecommunications Act. It is headed by two managing directors and is divided into the two departments “Telecommunications and Post” (Klaus M. Steinmaurer) and “Media” (Wolfgang Struber). As an office, it supports the Telekom Control Commission (TKK), the Post Control Commission (PCK) and the Austrian Communications Authority (KommAustria). Further information is available at www.rtr.at published.
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