Preliminary assessment of the second payment request of Romania

e responsible public authorities and institutions and by establishing their obligations with respect to the management and functioning of the National Interoperability Platform, the migration and integration of data into existing data structures is operationalised and interoperability is ensured, also in view of article 1(3), 9(9) and 16(3) of the interoperability law. The new law shall ensure that the implementation of functionalities involves aligning the national identification and authorisation infrastructures with EU Member States in a transnational scheme, in accordance with the European rules laid down in the eIDAS Regulation (EU) 2014/910 on electronic identification and trust services for electronic transactions in the internal market Article 17(i) of the interoperability law provides that IT projects of public institutions, which implement required functionalities, are only approved if they align with “the national identification and authorization infrastructures notified by the Authority for the Digitalisation of Romania within a transnational system, in accordance with the European rules laid down in Regulation (EU) 2014/910 on electronic identification and trust services for electronic transactions in the internal market (eIDAS), as well as with the implementing regulations.” This article proves this requirement is met as it ensures its compliance in a legally binding manner. The new law shall take into account the once only principle embedded in the Single Digital Gateway Regulation (EU) 2018/1724. Article 2(e) provides that one of the objectives of the interoperability law is to implement the once- only principle, as described in Regulation (EU) 2018/1724. Therefore, the law takes into account the once-only principle and itself ensures compliance with this principle in a legally binding manner. Furthermore, the justification and substantiating evidence provided by the Romanian authorities also cover the relevant constitutive elements in the description of the measure. The objective of this reform is to modernise the public administration by adopting advanced technologies and focusing on the citizens and businesses’ needs, while ensuring the prerequisites for data-driven policy development and increasing the interoperability of existing digital 21 technologies. Furthermore, the reform shall support the development of an integrated architecture of public digital services. By implementing the only-once principle and the principles for achieving interoperability presented in the European Interoperability Framework such as the principle of reuse and the principle of effectiveness and efficiency (Article 4), the interoperability law contributes to modernising the public administration by adopting advanced technologies and focusing on the citizens and businesses’ needs, while ensuring the prerequisites for data-driven policy development and increasing the interoperability of existing digital technologies in the Law No. 242/2022. Article 1(4) of the interoperability law sets out the requirement to increase the quality of public services by facilitating the exchange of data between computer systems, reducing the bureaucratic and administrative burdens on natural and legal persons and increasing the transparency of the use of data by public authorities and institutions, thus supporting the development of an integrated architecture of public digital services. Commission Preliminary Assessment: Satisfactorily fulfilled Related Measure: Transition to EU 2025 connectivity targets and stimulate Number: 147 private investment for the deployment of very high-capacity networks Name of the Milestone: Publication of the call for tender for the authorisation of telecommunications operators to grant 5G licences Qualitative Indicator: Call for tender is published on ANCOM’s website Time: Q2 2022 Context: Milestone #147 is part of reform C7.R2 that aims to accelerate the national roll-out of 5G networks and provide broadband coverage for white areas. Milestone #147 requires the publication and organisation of a competitive selection procedure for 5G licenses. This milestone is the first step is in the implementation of reform C7.R2. It follows milestone #146 on the entry into force of the 5G security law. It will be further followed by milestone #148 calling for the implementation of the recommendations from the EU connectivity toolbox and milestone #149 on the assignment of the rights of use of the radio spectrum based on the results of the competitive selection procedure. Evidence provided: In line with the verification mechanism set out in the Operational Arrangements, the following evidence was provided: i) Cover note duly justifying how the milestone (including all the constitutive elements) was satisfactorily fulfilled. ii) Terms of Reference for the organisation of the competitive selection procedure in view of awarding certain frequency usage rights in the 700 MHz, 1500 MHz, 2600 MHz and 3.4 – 3.8 GHz bands, from September 2022. iii) Link to the Notice on the organisation of the competitive selection procedure published on the website of the National Authority for Administration and Regulation in Communications (ANCOM), published on 19 September 2022. The authorities also provided: 22  iv) ANCOM Decision No. 644/2022 on the selection procedure for awarding spectrum usage rights in the 700 MHz, 1500 MHz and 3400-3800 MHz bands. v) Government Decision No. 1139/2022 on setting the minimum amount of the licence fee for awarding frequency usage rights for the radio frequencies available in the 703-733 MHz, 738-753 MHz, 1452-1492 MHz, 2550-2570 MHz and 3400-3800 MHz bands. vi) The Substantiation (i.e. background) Note to the Government Decision No. 1139/2022 on setting the minimum amount of the licence fee for awarding frequency usage rights for the radio frequencies available in the 703-733 MHz, 738-753 MHz, 1452-1492 MHz, 2550-2570 MHz and 3400-3800 MHz bands. vii) ANCOM Decision No. 645/2022 on amending and completing ANCOM Decision No. 551/2022 on setting the tariff for the use of the radio spectrum. viii) ANCOM peer review report in the proceedings of the seminar on award procedures rights of use for radio spectrum organised within the framework of radio spectrum policy group (RSPG), from 28 February 2019. Analysis: The justification and substantiating evidence provided by the Romanian authorities covers all constitutive elements of the milestone. Publication and organisation of a competitive selection procedure (auction) for granting the so called “5G licenses” (i.e. in the 700 MHz, 1500MHz and 3,4 – 3,8GHz bands) The Notice on the organisation of the competitive selection procedure, which marks the start of the selection procedure was published on ANCOM’s website on 19 September 2022. This publication gave notice to the organisation of the competitive selection procedure (auction) for granting the 5G licenses bands (700 MHz, 1500 MHz and 3,4-3,8GHz bands) in accordance with the Terms of Reference requirements. The competitive selection procedure is ensured as the design of the auction allows for bidding process as specified in the Terms of Reference. Long term licences are envisaged as per the European Electronic Communications Code criteria, to efficiently stimulate 5G, promote competition and end-users’ rights Article 31 of the Government Emergency Ordinance No. 111/2011 on electronic communications sets the duration of the radio frequencies usage rights taking into account the provisions of Recital 127 and Article 49(2) of Directive (EU) 2018/1972 establishing the European Electronic Communications Code. Section 3.1 of the Terms of References, drafted by ANCOM in compliance with Article 28(15) of Government Emergency Ordinance No. 111/2011, provides for the granting of rights (licenses) to use radio frequencies for a period of up to 25 years for the 700 MHz, 1500 MHz and 3400-3800 MHz bands. This section also takes into account Government Decision No. 1139/2022 on setting the minimum amount of the licence fee for awarding frequency usage rights. As provided by the European Electronic Communications Code criteria, the Terms of References provide that when granting spectrum usage rights, the two following criteria must be considered: (i) the promotion of an effective and efficient use of the radio frequency spectrum; and (ii) the promotion of innovation and efficient investment, including by allowing an adequate period of amortisation by lowering the period of depreciation of the investment. Government Decision No. 1139/2022 establishes the financial obligations to be met by the successful bidders of the spectrum usage rights tender for each frequency block included in the selection procedure, in connection with the validity periods. Compliance with these financial obligations results in a process that efficiently stimulates 5G spectrum bands deployment and promotes competition and, in turn, ensures end-users’ rights, as detailed in section 2 of the 23 Substantiation (i.e. background) note to the Government Decision No. 1139/2022. The auction procedure shall build on the experiences with past spectrum auctions in Romania (2012 and 2015) and with similar recent proceedings in the EU The selection procedure, the structure of the team responsible for organising the selection procedure and the organisational arrangements for the auction procedure were similar to the processes for the 2012 and 2015 spectrum auctions, following evidence provided by ANCOM in its peer review reports. Additionally, the ANCOM specialists organising the selections procedure studied recent selection procedures organised in other Member States and participated in Radio Spectrum Policy Group (RSPG) peer review forums, as the formal forum for sharing experience regarding recent proceedings in the EU (as provided evidence –viii-). Those actions led to the action procedure being built taking into account similar recent proceedings in the EU as provided in RSPG peer review report prepared by ANCOM (national sections from Sweden, Lithuania, United Kingdom, the Netherlands). The auction procedure shall incorporate competitive safeguards, market shaping mechanisms and conditions attached to the licences, all of them fit for the Romanian market specificities and dynamics Article 3 of ANCOM Decision No. 644/2022 on the selection procedure establishes the maximum amount of radio spectrum one participant in the selection procedure can hold. This is reiterated in Section 4.1.3 “Limitations on the acquisition of rights of use” of the Terms of Reference. Additionally, the amount of available radio spectrum blocks, and the corresponding band position is not fixed but will be awarded according to the results of a competitive allocation mechanism, as specified in Section 4.1.1 “Description of the blocks offered in the procedure” of the Terms of Reference. The Terms of Reference set rules on the independence of participants (Section 4.3.1), on arrangements between participants (Section 4.3.2), on confidentiality of information (Section 4.3.3), on the conduct of participants (Section 4.3.4), on the provision of information to the Commission (Section 4.3.5) and on applicable sanctions (Section 4.3.6). The auction procedure incorporates market shaping mechanisms, and the format of the auction increases the adoption of other measures meant to shape the market. In this context, the ANCOM Decision no. 645/2022 on the amendment and completion of ANCOM Decision no. 551/2012 on setting the tariff for the use of the radio spectrum, provides for 30 % reduction of the tariff for the use of the radio spectrum in the 694-790 MHz, 790-862 MHz, 880-915 MHz/925-960 MHz and3400- 3 800 MHz bands and conditions attached to the licenses. The conditions attached to the licenses are presented in section 3.2. and 3.3. of the terms of reference as obligations attached to the licenses. The obligations cover aspects such as population and territorial coverage, network development, quality of services, compliance with technical and operational conditions and requirements regarding the provision of communications in emergency situations. The network coverage obligations were established for each of the bands in the selection procedure considering their situation in terms of frequency occupancy and usage level. All these elements constitute market shaping mechanism and conditions attached to the licenses as part of the national regulatory authority role ANCOM develops as organiser of the tender and bidding process for the 5G auction bands. Sections 3.2 and 3.3 of the Terms of Reference provide the rights and obligations conferred by the licences, which take into account the Romanian market specificities and dynamics. They detail the obligations covering aspects related to population and territory coverage, network development, quality of services, compliance with technical and operational conditions and requirements 24 regarding the provision of communications for emergency situations. Commission Preliminary Assessment: Satisfactorily fulfilled Number: 153 Related Measure: Deployment of the Government Cloud Infrastructure Name of the Milestone: Signature of the contract to implement the investment based on the call for tenders procedure to implement the investment Qualitative Indicator: Signature of the contract Time: Q2 2022 Context: Milestone #153 is part of investment C7.I1, whose objective is to deploy the government cloud infrastructure, using secure and energy-efficient technologies to ensure the safe, interoperable and standard character of the public data. Milestone #153 concerns the signature of the contract for the implementation of government cloud infrastructure based on the call for tenders procedure. Milestone #153 is the first step for the achievement of the investment and it will be followed by target #154 to connect 30 public institutions through the government cloud and target #155 concerning the operationalisation of two Tier III and two Tier IV data centres. The investment has a final expected date for implementation in December 2025]. Evidence provided: In line with the verification mechanism set out in the Operational Arrangements, the following evidence was provided: i) cover note justifying how the milestone and including all the constitutive elements was satisfactorily fulfilled. ii) copy of the financing contract with contract number 3131/30.06.2022 from 30 June 2022 signed by the Ministry of Research, Innovation and Digitisation, the Authority for the Digitalisation of Romania, the Special Telecommunications Service and the Romanian Intelligence Service. iii) Annex No. 1 to the financing contract: Application for financing with related annexes, from 30 June 2022, drafted by the Ministry of Research, Innovation and Digitisation. iv) Technical project prepared by the Authority for the Digitalisation of Romania, the Special Telecommunications Service (STS), and Romanian Intelligence Service at the request of the Ministry of Research, Innovation and Digitisation for government cloud infrastructure deployment dated 17.10.2022. The authorities also provided: v) Feasibility study, prepared by the Authority for the Digitalisation of Romania, the Special Telecommunications Service and Romanian Intelligence Service at the request of the Ministry of Research, Innovation and Digitisation for government cloud infrastructure deployment submitted on 10 December 2022; vi) Cloud guideline prepared by the Ministry of Research, Innovation and Digitisation for government cloud infrastructure deployment submitted on 10 December 2022; vii) Action plan for government cloud prepared by the Authority for the Digitalisation of Romania, the Special Telecommunications Service and Romanian Intelligence Service at the request of the Ministry of Research, Innovation and Digitisation submitted on 29 June 2022; viii) Correspondence table showing compliance with European Code of Conduct on Data Centre Energy Efficiency, prepared by the Special Telecommunication Services (STS) at the request 25  of Ministry of Research, Innovation and Digitisation, submitted on 13 February 2023. Analysis: The justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of the milestone. Signature of the contract for the implementation of government cloud infrastructure. The contract for the implementation of the government cloud infrastructure was signed on 30 June 2022, with contract number 3131/30.06.2022. The institutions responsible for the call for tender and the implementation of this investment are the Special Telecommunication Services and the Authority for the Digitization of Romania. The financing contract signed between the Ministry of Research, Innovation and Digitalisation, on the one side, and the Authority for the Digitization of Romania, Special Telecommunication Services, and Romanian Intelligence Service, on the other side, as well as the Partnership Agreement and the financing application annexed to the contract show that the procurement for the development of the Government cloud that includes the call for tender and implementation of the investment is to be carried out by the three partners in the project: the Authority for the Digitization of Rom