Preliminary assessment of the second payment request of Romania

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

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