The Austrian Telecom Control Commission (TKK) published tender documentation for the auction of frequencies in the 3.4-3.8 GHz band. The auction is planned for the first quarter of 2019. According to Johannes Gungl, Chairman of the regulator RTR, this time they have done several things differently compared to the multi-band auction in 2013. The reserve price is much lower, the auction design is simpler and more transparent, and the announcement follows three rounds of consultations with stakeholders. In addition, regional licences will allow participation of local providers.
The total reserve prices amount to EUR 30 million, compared to EUR 530 million in the multi-band auction in 2013.
The licences shall be awarded in twelve regions and be valid until the end of 2039. The selected auction design is a Simple Clock Auction. This designed in such a way that the three major mobile operators can bid for continuous frequency bands nationwide. In addition, they can bid for metropolitan areas, where they need more spectrum.
The regulator set certain coverage obligations for the spectrum. Depending on the frequency range and region allocated, a successful bidder must supply up to 1,000 locations, and around a third of them by the end of 2020.
Spectrum caps will also apply. In the clock rounds, A1 and T-Mobile Austria can only bid for a maximum of 150 MHz and all others for a maximum 170 MHz of each 390 MHz per region. If frequencies remain after the clock rounds and there is another bidding round, the restrictions may be relaxed. So if there are no competition concerns, the absolute maximum for A1 is 160 MHz and for all others 190 MHz in all regions.
To speed up the development of new 5G transmitters and make them more cost-effective, the tender document allows sharing of infrastructure. However, this possibility is limited in the core network and partly in the active parts of the access network, such as transmitters in order to ensure healthy competition. At the same time as the tender document, TKK published its updated "Infrastructure Sharing Position Paper on Mobile Networks". This should give the bidders the clearest possible legal framework for the upcoming awards and the associated investments.
The auction is expected to start in February 2019, and the operators now have two months to apply to participate. Another two months will require admission and training for the auction.. Frequency allocation itself usually takes place within a month of the publication of the auction results by the TKK. The sub-range 3,600 to 3,800 MHz (LTE 43) can be used from the date on which the frequency allocation decision takes effect; the sub-range 3,410 to 3,600 MHz (LTE 42) can be used from 1 January 2020 after the current frequency assignment has expired.
