Finland brings 800MHz auction forward

Finland's Ministry of Transport and Communications has sent out for comments a draft act on the auction for the 800 MHz frequency band allocated to 4G networks. The purpose of this draft act is to organise the auction earlier than originally planned. According to the proposal, the process would be launched during 2012. Following the entry into force of the act, licences would be announced open for application, and the auction would be held in early 2013. The licence terms and conditions together with the schedule set forth in the draft mean that by 2019, 4G networks will be available to practically everyone in mainland Finland, according to Minister of Housing and Communications Krista Kiuru. At present, 4G networks are available only in the largest urban areas. 

A total of 2x30 MHz of frequencies will be auctioned in 2x5 MHz frequency pairs. A starting price will be set for the frequencies, generating auction revenue of at least EUR 100 million to the state. The sum would be paid to the state during a period of five years. The 800 MHz frequency band to be auctioned is cost-effective, the Ministry says. A single base station can cover a geographical area at least five times larger than that covered by a base station in the 2.6 GHz band auctioned in 2009. The coverage of an 800 MHz base station is also greater than that of the broadband base stations in the 900 MHz band. 

Objectives of the auction include extending the availability of mobile broadband, especially in sparsely-populated areas. In accordance with the Government Resolution on Spectrum Policy, the licences to be granted by auction will include conditions on how extensive the networks must be, and on what schedule they must be build up. This will ensure that new 4G networks are set up quickly.