The auction for the frequency spectrum allocation, with multiple frequency spectrums, will be carried out in 2 separate auctions. The decision on the allocation of the frequencies will be announced by the end of March.
Yesterday, Croatian Regulatory Authority for Network Industries (Hakom) announced that the bidding process for the issuance of licenses for the use of RF spectrum for mobile communications has begun. This is pertaining to the frequency bands of 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2600 MHz and 3600 MHz, on the territory of the Republic of Croatia. The auction will be conducted entirely through an electronic bidding system, and the bidding for each frequency band will be separated into two procedures. The first bidding, which began yesterday, covers the frequency bands 800 MHz, 900MHz, 1800 MHz, 2100 MHz, and 2600 MHz at the national level, and the second will cover the frequency band 3600 MHz at the regional level after the first one is completed.
The format for both biddings is the Simultaneous Multi-Round Auction (SMRA), while the specific allocation of frequency blocks per bidder will be determined in an additional bidding round through sealed bids. The permits will be issued for a period of 15 years, with the possibility of extension for an additional 5 years. It is expected that the decision on the allocation will be made by the end of March, which will depend on the dynamics of each of the biddings.
As mentioned, the frequency bands for the needs of mobile communications will be allocated at the national level, except for frequency blocks in the 3400-3480 MHz band, which will be allocated at the regional, or rather, county level in order to create opportunities for business of smaller, regional operators, and to encourage diversity of services, and to allow final users the possibility of choice.
The frequency bands that are subject to bidding for national coverage (initial price per block 2×5 MHz):
791-821/832-862 MHz (EUR 7m)
880-915/925-960 MHz (EUR 7m)
1710-1785/1805-1880 MHz (EUR 2m)
1920-1980/2110-2170 MHz (EUR 2m)
2500-2570/2620-2690 MHz (EUR 700k)
The initial price of all blocks of bidding for national coverage is EUR 154.8m. Meanwhile, the frequency band 3400-3480 MHz in the bidding for regional coverage, has the following initial price per block of 10 MHz (the difference is in counties due to the number of inhabitants):
Bjelovarsko-bilogorska at EUR 9.5k,
Brodsko-posavska at EUR 9.5k,
Karlovačka at EUR 9.5k,
Koprivničko-križevačka at EUR 9.5k,
Krapinsko-zagorska at EUR 9.5k,
Ličko-senjska at EUR 1.9k,
Međimurska at EUR 9.5k,
Osječko-baranjska at EUR 9.5k,
Požeško-slavonska at EUR 3.8k,
Sisačko-moslavačka at EUR 9.5k,
Varaždinska at EUR 9.5k,
Virovitičko-podravska at EUR 3.8k,
Vukovarsko-srijemska at EUR 9.5k,
Grad Zagreb at EUR 38k.
Finally, HAKOM also noted that for the frequency bands 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, and 2600 MHz, all the necessary requirements for participation in the public auction at the national level have been met by A1 Hrvatska, Hrvatski Telekom, and Telemach Croatia. For the frequency band 3600 MHz, all the necessary requirements in the public auction at the regional (county level) have been met by Digicom and Markoja.
