ANACOM commences procedure to amend the 5G auction regulation in order to prohibit use of smaller bidding increments


ANACOM has decided to commence the procedure to amend the Regulation governing the auction of 5G and other relevant bands, prohibiting use of the lowest value increments that bidders can select (1% and 3%). The aim of this measure is to expedite the auction’s progress. It should be recalled that since April, when it was decided to amend the auction regulation in order to increase the daily number of rounds in order to prevent excessive delay to its conclusion, it was made clear by ANACOM that if the increase in the daily number of rounds did not hasten proceedings to the extent required by the public interest objectives and failed to avert the scenario of an excessive delay to the conclusion of the auction, it would consider introducing new amendments to the Regulation, barring the use of the minimum bidding increments.

Despite this warning, ANACOM had expected that the increase in the number of rounds would be sufficient in order to prevent the auction from taking an excessive amount of time to conclude. However, this turned out not to be the case. In fact, since implementation of this measure, over 300 rounds have been held and, even while the current rules allow bidders to speed up the auction, if they so wish, progress continues to be very slow. It can also be seen that recurrent use of the smaller percentage increments continues to predominate.

The implementation of 5G is considered an imperative of utmost urgency, at both European Union and national level. The European Union objective is to secure a position of global leadership for Europe in the deployment of 5G networks, ensuring the availability of 5G in at least one city in each Member State, the availability of the 700 MHz band in all Member States in 2022 and the accomplishment of the "Gigabit Society" by 2025, with 5G available in major cities and along major transport routes. At a national level, the swift implementation of 5G is an important "instrument that will bring development and competitiveness to our economy, social and territorial cohesion and improvements and transformations in our way of life, social innovation and the quality of public services" (see Resolution of the Council of Ministers no. 7-A/2020 of 7 February). The COVID-19 pandemic confirmed how electronic communications are critical for society and for the functioning of the economy, as well as for citizens in general. Achieving a substantial improvement in digital connectivity becomes even more pressing, enhancing coverage where there are deficiencies (particularly in less densely populated areas) and promoting greater competition in the market.

All of this adds to the importance of ensuring that the spectrum made available in the auction is used within the shortest possible time, so that these deficiencies in coverage can be swiftly remedied, promoting economic and social development – especially given that a fundamental axis of the European economic recovery plan is based on the digital transformation of the economy - and to extract maximum benefit from the networks which will be supported over this spectrum.

In view of these imperatives and the slow pace of the auction to date, ANACOM decided to initiate the regulatory procedure to amend the Auction Regulation, with a view to barring use of the smallest minimum increments (1% and 3%).

Flexibility in the determination of permissible bidding increments is a rule that has been used in other multiple-round spectrum auctions, particularly in ascending auctions, which have taken place recently in Europe, such as in Germany (2018), Finland (2018), Italy (2018) and Slovakia (2020)

Given the circumscribed content of the amendments to the Regulation that ANACOM proposes to make, and the need, given the excessive prolongation of the auction, to proceed without delay in order to effect the speed of the current bidding process, ANACOM has decided to grant interested parties a period of 5 working days to submit contributions and suggestions which they feel should be considered in the preparation of the draft amendment to the Regulation1.

At a later date, interested parties will have a further opportunity to express their views on the draft regulation, with another period of 5 working days.

Meanwhile, ANACOM has undertaken a series of initiatives aimed at preparing for the implementation of 5G in Portugal. Since 2017, it has made radio spectrum available for technical trials, scientific studies and demonstrations in the context of practical use and evaluation of 5G technology. This policy was reinforced in 2021, allowing wider use of the spectrum.

These tests and technical studies provide a high level of added value, since they allow researchers, manufacturers and operators of electronic communications to test the various functionalities and capabilities of these technologies, and also to refine their theoretical models, before advancing to the deployment of future 5G networks, with the consequent provision of services to consumers.

This initiative enables the compilation of knowledge about the new technology and supports preparation of the future commercial operation of 5G networks, in a safe and secure manner, providing an opportunity to sustain the country's socioeconomic development and, consequently, society as a whole.

With the opportunity of these trials, ANACOM carried out a wide range of measurements of the electromagnetic fields (EMF) to assess the impact of 5G, in terms of the general population's EMF exposure. As a result of this work, it was concluded that the contribution of the 5G networks under trial in the 3.6 GHz band to levels of total exposure was always within safe limits and of very little significance when compared to the mobile networks that are already in operation today.

ANACOM also held a series of work sessions with local authorities and launched the “Rumo ao 5G” (Towards 5G) digital guide, providing local authorities with additional information on the implementation of telecommunications networks, especially 5G networks.

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1 No later than 19 August 2021, to the email address reg.leilao@anacom.ptmailto:reg.leilao@anacom.pt.

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