Award result: a successful step towards 5G

Seven bidders receive usage rights in the 3.4–3.8 GHz band with a total market value of around EUR 188 million. Next step to be taken in 2020.

Press release dated 7 March 2019

• Efficient, nationwide 5G assignments for the three mobile operators
• Four other successful regional bidders
• Austria now in the 5G vanguard in terms of time of award and frequency block volume
• Revenue of around EUR 188 million

“This was an initial and highly successful step towards the rapid rollout of 5G in Austria,” comments telecoms regulator Johannes Gungl on the just-completed award of the inaugural 5G band. The EU considers 80 to 100 MHz to be an effective range for introducing high bandwidth 5G wireless services. During the award process for the 3.4–3.8 GHz band, the three Austrian mobile operators A1, T-Mobile and Drei in fact acquired licences for 100 to 140 MHz of contiguous frequencies in all twelve regions put to tender. Gungl: “Accordingly, we are now in the vanguard of EU countries in terms of the time of the 5G award, the frequency volume and operator assignments.”

Results in detail have been published on the RTR website. It took three weeks to determine the market value of the frequency usage rights, which ultimately totalled around EUR 188 million. Bidders invested sums ranging from EUR 1.8 million to EUR 64.3 million.

Regional structure proves its merit

The award design selected also worked to strengthen competition in the telecommunications sector. One mobile services provider (an MVNO) who had previously only leased the use of third-party networks secured usage rights for frequencies in Lower Austria and Burgenland. Three regional broadband providers were granted licences in Upper Austria, Salzburg and Styria.

The 3.4–3.8 GHz band is particularly well suited to providing regional coverage. Gungl: “Our aim was to strengthen the economy while ensuring fast, reliable connectivity for consumers. As in the past, this is assured by a variety of providers making their individual contributions.”

As a result, the first leg of a journey has now been completed, ultimately leading to the successful rollout of 5G services in Austria. The second step, which will be decisive for coverage, starts with the 2020 multiband award. “With this year’s inaugural 5G band award, we have boosted the factors of innovation, competition and the economy. The multiband award in early 2020 will make 5G generally available,” says Gungl, also citing the in-depth preparatory work now being completed for this second award process.

Consultations: open dialogue and participation

As with the award now completed, which involved the hosting of two rounds of highly detailed consultations with industry stakeholders that decisively shaped the award design, RTR also intends to emphasise dialogue in the multiband award. Gungl: “Over the last few days, we have held an initial, in-depth consultation round on the 2020 multiband award. And stakeholder involvement—especially outside the telecommunications sector—was stronger here than ever before. This shows just how crucial a successful 5G rollout is for both businesses and consumers in Austria.”

Links

Full details of award results

Special frequency award newsletter (in German only)

About RTR

The Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR) is wholly owned by the Republic of Austria. RTR’s core mandate is to promote competition in the broadcasting, telecommunications and postal markets as well as to achieve the goals set out in the KommAustria Act and the Telecommunications Act. RTR is headed by two managing directors and structured into two specialist divisions: the Media Division (Oliver Stribl), and the Telecommunications and Postal Services Division (Johannes Gungl). RTR also serves as an administrative agency, providing support to the Austrian Communications Authority (KommAustria), the Telekom-Control-Kommission (TKK) and the Post-Control-Kommission (PCK). With the funds under its administration, RTR supports projects in the broadcasting and media sectors. The two specialist divisions within RTR also offer alternative dispute resolution services, which can also be provided via its officially recognised consumer arbitration centres.

For more information, visit www.rtr.at