PRESS RELEASE: CTU introduced draft auction conditions

Prague, 3 March 2020 – The Czech Telecommunication Office organised second workshop introducing draft conditions of anticipated frequency auction in the 700 MHz and 3.5 GHz bands. Public consultation on the draft conditions will be launched on 16 March and will be open for comments for one month. Launch of tender is expected at the end of June 2020.

The auction conditions promote competition on the mobile market aiming to ensure long-term positive development of mobile services prices. At the same time the introduced conditions support deployment of 5th generation networks pursuant to the 5G strategy adopted by the Government.

Frequencies in the range of 2 x 30 MHz will be auctioned in the 700 MHz band given that each operator can gain a maximum of 2 x 10 MHz. However, CTU is prepared to double this limit. CTU enhanced the national roaming obligation in favour of the new operators not only in the 700 MHz, but also in the entire 3,400–3,800 MHz band. But to use the national roaming, the condition of a minimum coverage will have to be fulfilled. An applicant could demand national roaming after covering at least 10% of the population with 5G networks and will be obliged to constantly increase coverage by own network.

In accordance with the government’s 5G strategy, CTU also decided to promote Industry 4.0. To this end, CTU reserved a block of 40 MHz from the 3,400–3,600 MHz band. The conditions to promote Industry 4.0 will be set independently on the auction conditions. CTU will grant these frequencies under an individual authorisation to industrial applications, for example to production control in industry sites. This solution is inspired by a similar approach done in Germany.

The auction conditions will also adhere to the European legislation related to sharing networks and will be made in compliance with the European competition rules.