The telecommunications market regulator (UKE) has just announced the second round of consultations before the planned auction of the 3.4-3.8 GHz band for 5G networks this year. The minimum price remains PLN 450 million, with the possibility of purchasing only one block by one capital group.
Minimum PLN 1.8 billion for 4 blocks
The first round of consultations preceding the 5G auction in Poland has ended. UKE has just announced the start of the second round, which will last until 27 February 2020.
The most important information is that the minimum price of each of the four C-band blocks put up for sale, each with a width of 80 MHz, is still PLN 450 million, which gives the minimum amount of proceeds from the auction to the State Treasury of PLN 1.8 billion.
It is also very important that each of the capital groups participating in the auction will be able to purchase a maximum of one block. If the restriction were lifted, this could completely change the operators’ approach to the auction and take on a different tactic, whether to try to purchase two blocks or to raise the price of a single block strongly upwards in order to harm a competitor.
Cosmetic changes after the first round of consultation
UKE made changes after the first round of consultations. The rules of the planned auction of 3.4-3.8 GHz are now slightly different, although we can talk about tuning rather than revolution. The bidium, in accordance with the Telecommunications Law, was calculated at PLN 182 million (previously it was the minimum price per block, i.e. PLN 450 million).
As suggested by some operators, after the first round of consultations, investment requirements went up. The time needed to launch 10 base stations in at least one regional city in the first phase was reduced from 6 to 4 months. In practice, this means the start of commercial services on the frequency subject to auction still in 2020.
Other changes in the coverage requirements are that in two consecutive phases of the 5G network construction, 300 (previously 250) 5G stations will have to be commissioned by the end of 2023 and 700 stations (previously 500) by the end of 2025.