Results of tender for 1800 MHz frequencies - UKE

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Results of tender for 1800 MHz frequencies


2013-02-13
Press conference of the President of UKE
The President of the Office of Electronic Communications has resolved tender for frequency licences in the 1800 MHz band for the provision of high-speed mobile Internet services. The offers of P4 Sp. z o.o. and Polska Telefonia Cyfrowa S.A. obtained the highest score. Within 2 years at least half of new transmitters will be launched in rural areas and in small towns. The state budget may be fed with a sum exceeding PLN 950 million due to paying fees for frequency licences.

 

Frequencies in the 1800 MHz band constitute valuable resources intended for the provision of telecommunications services in mobile or fixed radiocommunication service until 31 December 2027 in the entire national territory. They may be primarily used in order to make high-speed mobile Internet and data transmission generally accessible.  They will also serve to increase the availability of broadband services not only in urban areas but also in rural areas and areas with mixed urban and rural features.

As a result of resolved tender new players will enter the high-speed Internet market in 12 months at the latest, thanks to which competition will increase and modern telecommunications services will become more accessible. Consumers will have more choice from among several offers available in the market. Wider access to mobile high-speed Internet will also  to a large extent support elimination of digital exclusion, in particular in areas where investment in telecommunications infrastructure requires significant expenditure and time.

Course of the tender

On August 2012, the President of the Office of Electronic Communications announced commencement of a tender procedure for five frequency licences in the 1800 MHz spectrum band designated to provide mobile telecommunications services in the entire country. Each licence covers 5 MHz of spectrum in the 1729,9 -1754,9 MHz band and 5 MHz of spectrum in the 1824,9- 1849,9 MHz band. Interested parties could submit one, two or three offers at the maximum. Each offer was independently evaluated.

Within the binding deadline, i.e. by 22 October 2012, offers were submitted by six telecommunications undertakings (listed in the order of submission)
1) P4 Sp. z o.o.  (3 offers)
2) Polkomtel Sp. z o.o. (2 offers)
3) Polska Telefonia Komórkowa Centertel Sp. z o.o. (3 offers)
4) Polska Telefonia Cyfrowa S.A. (3 offers)
5) Sferia S.A. (2 offers)
6) EmiTel Sp. z o.o. (3 offers)

Following formal evaluation, offers of the following entities were qualified for the second stage of examination:  P4 (offers No. 1, 2, 3), Polkomtel (offer No. 1), PTK Centertel (offers No. 1, 2, 3), PTC (offers No. 1, 2, 3).

The tender was resolved based on the following criteria: fulfilment of the conditions for competition, amount declared and financial credibility of the Tenderer.

The President of the Office for Competition and Consumer Protection gave its opinion with respect to fulfilment of the conditions for competition. The President of UOKiK found that offers of P4 had a positive impact on competition, offers of PTK Centertel and PTC - neutral, while the offers of Polkomtel - negative. Offers of the remaining entities were not evaluated by the President of UOKiK because they did not qualify for the second stage of evaluation due to formal reasons.

As a result of assessment done by the UKE Tender Committee the following points were awarded to particular offers:

Position in the ranking
EntityOffer number
Evaluation in points [P]
Amount declared for a frequency licence [PLN]
1
P4 Sp. z o.o.
3
2010.793
214,000,000.00
2
P4 Sp. z o.o.
1
1988.470
142,000,000.00
3
P4 Sp. z o.o.
2
1988.470
142,000,000.00
4
PTC S.A.
1
1950.415
210,639,000.00
5
PTC S.A.
2
1950.000
242,890,000.00
6
PTK Centertel Sp. z o.o.
1
1690.609
126,500,000.00
7
PTK Centertel Sp. z o.o.
2
1667.804
151,500,000.00
8
Polkomtel Sp. z o.o.
1
1214.362
118,000,000.00
9
PTC S.A.
3
1152.470
49,378,000.00


The qualifying minimum in the tender was set at the level of 1150 points. The qualifying minimum was not reached by offer No.3 submitted by PTK Centertel Sp. z o.o. which obtained 1004.632 points.

Tenderers' commitments

Entities selected in the tender committed themselves to pay a one-off fee for a frequency licence and to start using granted frequency resources within 12 months of the date on which they receive decisions on the frequency licence. They also committed themselves to invest in the telecommunications network by means of roll-out or extension of at least 3200 base stations (the minimum required in the tender documentation is 1800 transmitters), of which at least 50% are base stations in rural communes, in communes with mixed urban and rural features or in cities with a population of less than 100,000.

Frequency licence

From the date of announcement of the tender results entities selected in the tender have 7 days to submit requests to the President of UKE for granting each of the five licences subject to tender.

The assignment of particular frequency licences in the 1800 MHz band will be made by the President of UKE in the course of administrative procedure, taking account of the principle of effective spectrum usage and optimal frequency management as a priority. The President of UKE will grant the frequency licences taking account of potential requests from entities selected in the tender, in particular referring to the assignment of specific frequency ranges in a way ensuring that radio channels of a given entity are adjacent.


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