Frequencies will check for transparency. The government decided to distribute them at auctions

The Government of the Russian Federation decided that licenses for frequencies for mobile communication have to be distributed only through auctions


Licenses for frequencies for mobile communication have to be distributed only through auctions, solved the Government of the Russian Federation. It will allow to make procedure of obtaining frequencies by more transparent, but their cost can repeatedly grow, operators warn.

The Government of the Russian Federation approved new rules of distribution of frequencies for mobile communication. The resolution signed by the prime minister Dmitry Medvedev on May 24 was published on May 28. As obtaining the license for rendering communication services in the territory where the number of operators is limited to an available radio-frequency range is told in the document, will be organized in the form of auction. Such method of distribution of frequencies will promote investment appeal of the sphere of telecommunications, and also will provide transparency of procedures of tendering, is told in the explanatory note to the government resolution.

Since 1990th years the frequency resource without which it is impossible to construct business in mobile communication, was distributed either without competition, or at the auction which conditions almost always did not arrange business. So, the serious criticism from regional communications operators, including "Tele2 Russia" belonging then to the Swedish Tele2 was caused by the competition which was taking place in the summer of 2012 on distribution of frequencies 4G. Then 4G-frequencies were distributed between MTS, "MegaFon", "Vympelcom" and "Rostelecom".

In January, 2013 officials of the Ministry of Telecom and Mass Communications reflected on refusing private decisions and competitions. The head of the Ministry of Telecom and Mass Communications Nikolay Nikiforov supported recognition of all radio-frequency range as a limited natural resource which can be distributed only at auctions. In March, 2013 the Ministry of Telecom and Mass Communications developed the draft of the government resolution fixing an auction form of distribution of frequencies. The ministry planned to assume powers on the organization of the auction. However the government left a question of making decision on tendering behind the Ministry of Telecom and Mass Communications, Roskomnadzor will be the organizer of auction still. Department will be able to attract the auctioneer to carrying out auctions, to create an electronic platform or to agree with the operator who is already existing. Licenses for the frequencies obtained as a result of auctions will be prolonged further without the new auction. Thus the frequencies which are given out earlier by results of competitions also will not be exposed on auctions, reported in the press service of the Ministry of Telecom and Mass Communications.

The source of "Kommersant" in one of operators of "the big three" notes that costs of the companies of acquisition of a frequency resource will repeatedly grow now as the company which offered the maximum sum will be the winner. "These expenses could be justified if the state put up for sale free strips of frequencies. In practice ranges of frequencies for development of LTE in Russia are occupied by military and systems of air navigation that involves need of their clearing. Operators should spend tens of billions of rubles for it", – the interlocutor of "Kommersant" considers.

The auction for the LTE frequency of 2570-2620 MHz can become the next auction. The state commission on radio frequencies (GKRCh) charged to Roskomnadzor to carry out them no later than the second quarter of the current year. However on April 16 GKRCh transferred consideration of this question for an indefinite term, including for "definition of the most effective form of tendering". It is not excluded that on auction LTE frequencies in the Crimea which in March was a part of Russia will be exposed. Besides, the Ministry of Telecom and Mass Communications planned to put up for sale LTE frequencies in the range of 1800 MHz. "It is important that terms of trade were fair and equal for all participants. Auction more meets these requirements", – the representative of "MegaFon" reported. In the press service of "Vympelcom" told that the operator "always supported that procedures of obtaining licenses were the most transparent, the auction form provides it". In MTS and "Tele2 Russia" refused to comment on the government resolution.



Maria Kolomychenko
Businessman
 No. 91 of 29.05.14