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Finland to hold tender for wireless broadband frequencies

18/09/2009

The Finnish Cabinet has approved a bill to allow the auction, the aim of which is to promote competition and ensure effective spectrum use. The frequency range up for auction is particularly suitable for the new wireless network technologies like UMTS networks and mobile WiMAX.

According to the bill, no more than 50 megahertz can be granted to any single business or organisation. This is intended to prevent a monopolisation of frequencies, ensuring that there are enough frequencies for at least four different businesses.

According to the Ministry of Transport and Communication, the auction is slated for November 2009 and licences would be issued for a maximum period of 20 years. The primary principle is that the licence holder could, if desired, sell or lease the user rights granted in the auction to a third party. This would require government approval, however.

Frequencies in the 2570-2620 megahertz range would be auctioned as a single 50 megahertz bandwidth. A total of 14 2 x 5 megahertz bandwidth pairs in the 2500-2570 and 2620-2690 megahertz ranges will be auctioned.

Each business or organisation entering the auction would be charged a EUR 50,000 participation fee to cover the administrative costs of the Finnish Communications Regulatory Authority (FICORA). The starting price specified in the bill is set at EUR 15,000 per megahertz.

“The government is committed to developing the use of radio frequencies in a more flexible and efficient way. The purpose of this bill is to gain experience in applying the auction approach in the Finnish communications sector as part of a national broadband strategy,” states Minister of Communications Suvi Lindén.