AKEP opens the competition for 5G technology frequencies

2024-09-02 07:21:00, Ekonomi CNA

The Electronic and Postal Communications Authority (AKEP) has officially opened the competition for the first frequencies to be used for 5G mobile services technology.

The procedure for granting usage rights in the 3400-3800 MHz frequency band provides for the granting of five usage rights in this band, namely two with a spectrum amount of 80 MHz and three with a spectrum amount of 40 MHz.

For the blocks with a spectrum amount of 80 MHz, the minimum amount of bids of the participants in the competition must be 3 million and 624 thousand euros. For blocks with a spectrum amount of 40 MHz, the minimum value of the offer must be 1 million and 812 thousand euros.

In the event that AKEP manages to successfully use the entire available frequency spectrum, the minimum amount that the state budget will benefit from this process is calculated at approximately 12.7 million euros.

The sole evaluation criterion for determining the winning bids will be their price. The tender regulation provides that the bid price can be paid in two installments, namely the first installment of 50% within seven days of receiving the notification of the winner and the second installment of 50% within six months of the granting of the Individual Authorization.

The minimum price set in the competition is significantly higher, compared to neighboring countries. For example, in Kosovo, the usage rights for a larger amount of spectrum (100 MHz versus 80 MHz in the case of Albania) were granted for a price of around 2 million euros. In North Macedonia, a right of use in the same band, always for an amount of spectrum of 100 MHz, was given to use for 3 million euros.

The higher price can be argued with the larger population compared to neighboring countries, although the last Census showed a significant contraction, to 2.4 million inhabitants.

According to the competition regulation, a single bidder cannot win more than three usage rights or 160 MHz of spectrum in total.

In theory, the process also creates space for new operators to enter the mobile market. However, taking into account the small size of the Albanian market and the large investments needed to set up networks, in practice the chances of new mobile network operators (MNOs) entering the market are estimated to be small.

The deadline for submitting offers will be October 17 of this year, the date when the submitted offers will be opened. The start time of using the frequencies will be no later than 6 months from the date of the device with Individual Authorization.

The conditions of the tender require a coverage of 55% of the population with 5G services by 2027 and 85% of the population by 2030. Regarding the terms of territory coverage, the tender regulation requires coverage with 5G services in the authorized band (part of the spectrum 3.4 GHz - 3.8 GHz), until the end of 2025 in the ports of Durrës, Vlorë, Shengjin, Sarandë, Porto Romano, the airports of Tirana, Kukës and Vlora, the industrial zone Tirana - Durrës and the Hospital Centers of Tirana.

Meanwhile, the deadline for the extension of 5G services in all cities of Albania will be 2028.

According to AKEP, the generation of 5G mobile systems can theoretically increase the data speed of 4G networks by more than 10 times, by improving frequency usage techniques. However, if we refer to data from the measurements of operators that have implemented 5G networks in recent years, the changes in practice are not of these dimensions.

The average data download speed on 5G networks is roughly twice as high as 4G networks, but it still varies widely, depending on the operators.

Specialized internet speed measurement companies, such as Ookla, estimated the average speed of 5G networks in 2022 to be around 168 Mbps (megabits per second). Always referring to these measurements, the average speed for certain operators in Europe has reached approximately 600 Mbps.

These speeds are certainly higher compared to the average levels of current 4G networks, but for most individual users they do not make a big difference to the experience of ordinary Internet use.

However, 5G networks are expected to offer greater capacities and broader perspectives, especially in the expansion of services for businesses.

Optimum coverage with mobile broadband internet networks for Albania is important, also because our country is among the most backward in Europe in coverage with fixed networks./ Monitor Magazine