Austrian regulator starts consultation on conditions for second 5G auction

Nieuws Mobiel Oostenrijk 23 SEP 2019
Austrian regulator starts consultation on conditions for second 5G auction

The Austrian regulator RTR has started a consultation on the conditions of the tender to award the 5G frequencies in the 700 MHz, 1500 MHz and 2100 MHz bands for a term of more than 20 years.  

The Federal Minister of Transport, Innovation and Technology has to approve the tender conditions to start the second 5G auction in spring 2020. The auction should end in Q2 2020.  

The auction is divided in two phases. In a first step, the frequencies in the 700 MHz (6 blocks) and 2100 MHz bands (12 blocks) will be allocated, and the second stage will allocate the frequencies in the 1500 MHz band (8 blocks). 

The 700 MHz licences come with a condition that operators cover 900 underserved communities with 30 Mbps speeds in download and 3 Mbps speeds in upload. In addition, 98 percent of the highways and selected railway lines as well as 90 percent of federal and state highways are to be supplied with at least 10 Mbps download and 1 Mbps upload.  

The reserve prices set a minimum cost for the spectrum of EUR 295 million. The regulator has developed a bonus system for operators to reduce the cost, so if they agree to cover additional underserved areas, they can obtain a reduction in the spectrum price. In total over 2,000 such locations will be open for bidding to receive the coverage bonuses.

The RTR has also withdrawn a proposed requirement to give MVNOs access to the 5G networks. Following further research of the market, the regulator said it found this requirement was not necessary. However, it still welcomes feedback from the market before finalising the conditions. 

Comments in the consultation can be submitted until 21 October. 

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