By determination of 17 October 2011, ICP-ANACOM adopted a regulation laying down the rules governing the auction for the allocation of rights of use of frequencies in the 450 MHz, 800 MHz, 900 MHz, 1800 MHz, 2.1 GHz and 2.6 GHz bands (the multi-band auction) - Regulation no. 560-A/2011 of 19 October.
Following this selection procedure, which was conducted in 2011, on 6 January 2012, ICP-ANACOM approved the final report of the multi-band auction, which includes the decision and allocation of rights of use of frequencies in the 800 MHz, 900 MHz, 1800 MHz, 2.1 GHz and 2.6 GHz bands. The following table lists the number of lots won per bidder and unallocated lots by frequency band.
|
Frequency band |
Number of |
Lot Size |
Spectrum won at bidding stage |
Number of |
||
|
Optimus |
TMN |
Vodafone |
||||
|
450 MHz |
1 |
2 X 1,25 MHz |
- |
- |
- |
1 |
|
800 MHz |
6 |
2 X 5 MHz |
2 X 10 MHz |
2 X 10 MHz |
2 X 10 MHz |
- |
|
900 MHz |
2 |
2 X 5 MHz |
|
|
2 X 5 MHz |
1 |
|
1800 MHz |
9 |
2 X 5 MHz |
2 X 14 MHz |
2 X 14 MHz |
2 X 14 MHz |
3 |
|
3 |
2 X 4 MHz |
- |
||||
|
2,1 GHz |
2 |
5 MHz |
- |
- |
- |
2 |
|
2,6 GHz FDD |
14 |
2 X 5 MHz |
2 X 20 MHz |
2 X 20 MHz |
2 X 20 MHz |
2 |
|
2,6 GHz TDD |
2 |
25 MHz |
|
|
25 MHz |
1 |
Source: ICP-ANACOM.
In financial terms, Optimus and TMN took on expenditure, in respect of said rights of use, totalling 113 million euros each, and Vodafone 146 million euros.
In accordance with article 31 of the Auction Regulation, operators were required to reach agreement among themselves as to the exact location of the spectrum to be assigned in the 1800 MHz band, whereas ICP-ANACOM was responsible for approving the agreement in accordance with the principles set out in paragraph 2 of the same article.
As such, by determination of 9 March 2012, ICP-ANACOM approved the decision endorsing the agreement between Optimus, TMN and Vodafone on the exact location of the spectrum allocated to these operators in the 1800 MHz band.
By determination of the same date, and following appropriate consultation procedures, ICP-ANACOM issued the respective titles of unified rights of use of frequencies for terrestrial electronic communications services to each of the three mobile operators with their own network in Portugal as were likewise the winning bidders in the auction. In this context, ICP-ANACOM considered it timely and appropriate to bring together, into a single title, the conditions governing the exercise of the right of use of frequencies, eliminating, wherever admissible and justifiable, the distinction between technologies and frequency bands used for the provision of LMS, thereby enhancing the effective application of the principle of technological neutrality.
In terms of the coverage obligations arising from the multi-band auction, the Auction Regulation makes each lot of 2 x 5 MHz in the 800 MHz frequency band subject to a coverage obligation associated with a maximum of 80 parishes as tend to lack mobile broadband coverage.
Therefore, given that the auction resulted in the allocation of two lots of 2 x 5 MHz in the 800 MHz band to each of the three mobile operators, each of these companies was required to provide coverage of a set of 160 parishes (80 parishes x 2 lots), as was subsequently established in the respective titles of the rights of use of frequencies.
Accordingly, by determination of 9 November 2012, ICP-ANACOM approved and published the final list of 480 parishes as tending to lack mobile broadband coverage which the three mobile operators were bound to provide coverage to within six months (50% coverage) and one year (100% coverage) following notification, by the regulator, of the end of operating restrictions in the 800 MHz frequency band. Under the terms of the Auction Regulation, and as established in the above determination, Vodafone was the first to exercise the right to select 160 parishes, doing so in 2013. Subsequently, TMN also made its choice, and the list of remaining parishes was later communicated to Optimus. To complete the process of establishing coverage obligations, ICP-ANACOM will specify the methodology giving basis to the measurement of the parameters of coverage levels.
The imposition of access obligations also follows from the multi-band auction. In this context, Vodafone (in the 800 MHz and 900 MHz bands), and TMN and Optimus (both in the 800 MHz band only) have the obligation to negotiate agreements allowing access to their networks in these bands, doing so in good faith and according to conditions of non-discrimination. Both obligations remain in force for a period of 10 years following the issuance of the titles (in respect of the 900 MHz band) and following notification by ICP-ANACOM as to the end of operating restrictions (in respect of the 800 MHz band).
ICP-ANACOM will closely oversee compliance with the obligations specified, given the important role of these obligations in ensuring that a greater number of consumers are able to benefit from effective access to the information society. These obligations promote improved conditions of competition and contestability in the sector, promoting investment and gains for consumers throughout Portugal. With a view to this last objective, the multi-band auction contains further mechanisms over extended time horizons, in particular the spectrum cap (deferred in time), whereby, given the results of the auction, Vodafone will be required, subsequent to 30 June 2015, to sell excess spectrum above the cap to third parties or, failing this, to return the excess spectrum in question to ICP-ANACOM. Meanwhile, the evaluation of the mobile electronic communications market, which ICP-ANACOM is committed to conducting within two years following conclusion of the auction, will determine the existence of possible distortions to competition and determine the need to adopt appropriate measures for their removal, pursuant to its responsibilities of spectrum management.
