Clarification regarding the auction for frequencies in the 800 MHz band - UKE

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Clarification regarding the auction for frequencies in the 800 MHz band


2014-11-06
Logo UKE (angielskie)
In reference to the untrue information that, as a result of the auction for frequencies in the 800 MHz band conducted by the President of UKE, a part of Poland will be deprived of the internet access, or that modern radio networks will not be developed in a certain area of Poland, the President of UKE indicates that, as a result of the auction, entrepreneurs who acquire frequencies will be obliged to ensure network coverage in almost 90% of the municipalities in Poland.  

 

Those are all the municipalities in which, at the moment of determination, the network coverage was below 80% of the municipality’s territory. The auction obligations are therefore very rigorously targeted at the country’s coverage with the fast internet network, especially in those areas where access to fast internet is currently difficult.

It shall be pointed out that the procedure of frequencies’ sale – whether it is a tender, an auction or a contest – is without prejudice to the coverage obligations indicated above.
It is merely a sales procedure. In both cases the President of UKE imposes on the auction participants coverage/investment obligations that are mandatory. Such obligations further become elements of the frequency licence of the particular entity. A failure to implement such a licence can even lead to the withdrawal of the licence, i.e. revocation of frequencies.

In the history of frequency sales in Poland such a coverage/investment obligations have always been imposed by the President of UKE. The latest such example was the last year’s tender for the frequencies of 1800 MHz band, won by P4 and T-Mobile. Then, the President of UKE obliged the winners to build at least 3200 base stations per operator within 24 months.

Those obligations have already been (ahead of the deadline) practically implemented, as of 27 October 2014:

  • P4 has obtained 4093 radio licences for the 1800 MHz frequency assigned within the said tender,
  • T-Mobile has obtained 3065 radio licences for the 1800 MHz frequency assigned within the said tender.
Referring to the above issues in more detail, it shall be explained that the auction commitments as regards the 800 MHz band include the execution of network coverage not later than within:

1. 24 months from the date of service of the licence: for 83% to 89% of municipalities, indicated separately for each frequency block, with a population below 30 000 (several municipalities above 30 000), where current coverage of mobile networks offering transmission services is below 80% of the municipality’s area. There are 1242 such municipalities in total (on average 248 municipalities per each bock). 

2. 36 months from the date of service of the reservation: for 90% of the indicated 1053 municipalities with a population up to 30 000.

3. 48 months from the date of service of the reservation: for 90% of the indicated 91 municipalities with a population from 30 000 to 50 000.

The areas that do not fall under the auction commitments in the current proceeding are the areas of big urban agglomerations, where fast internet is available through means other than 800 MHz frequency.

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