An auction for allocation of 5G spectrum has started in the Czech Republic, reports the news agency CTK citing Barbora Havelkova, a spokeswoman of the national telecommunications watchdog CTU. The total starting price for frequencies in the 700 MHz and 3.4-3.6 GHz bands amounts to CZK 5.4 billion. According to the CTU, the active bidding phase should end by Christmas at the latest; allocations due to legislative deadlines will probably not take place until the new year.
The CTU is offering frequencies in the 700 MHz band released by the transition from TV broadcasting to DVB-T2, as well as frequencies in the 3.4 to 3.6 GHz range. Each are considered pioneer bands for launching 5G networks.
The aggregate starting price is about CZK 900 million lower than the watchdog’s original plan in 2019. The reason is the results of similar competitions in other states in the world and the reduction in the price of one of the frequency blocks, which is linked to the obligation to provide national roaming to any newcomer on the market. The conditions of the auction were revised three times by the regulator
The minimum starting price for one frequency block ranges from CZK 110 million in the 3.4 to 3.6 GHz band to CZK 1.4 billion for frequencies in the 700 MHz band reserved for the new operator.The auction was attacked by three domestic operators through lawsuits and complaints to the European Commission. They are particularly bothered by the national roaming conditions and the small bandwidth in the 3.4 to 3.6 GHz band.
A total of seven bidders were admitted to the auction, but their names were not disclosed by the CTU. The auction is expected to bring to the market one or more new operators who would increase competition and help reduce the price of mobile data. According to estimates of the State Commissioner for Technologies and Digitalisation Vladimir Dzurilla, the auction should lead to a decline in the monthly rate of unlimited mobile data packages from CZK 1,000 to around CZK 700.
