Price of 5G licenses in Romania estimated at nearly EUR 700 mln

The sale of 25-year radio licenses for the construction of 5G communication networks, expected to generate revenues of at least EUR 693 mln to the budget, will be subject to final discussions between the National Communications Regulatory Authority (ANCOM) and the main bidders - Orange, Vodafone, RCS&RDS Digi and Telekom Mobile.

"On Wednesday, September 14, all the documents regarding the selection procedure will receive final approval in the Advisory Council of ANCOM", announced Eduard Lovin, vice-president of the institution, Mediafax reported.

After the latest round of discussions, the telecom operators convinced ANCOM to sweeten the terms of the contract, probably the most important being the 30% reduction of the radio spectrum usage tariff, which will translate into lower costs paid by the telcos.

However, the telecom companies were no longer granted access to preferential electricity prices under the latest form of the "cap and subsidy" scheme aimed at protecting some economic sectors and households from unusually high energy prices. The telecom operators have complained that this would result in fewer investments.

The telecom operators are expected to invest some EUR 2 bln in developing 5G infrastructure, including the fees paid to Government.

The Government's decision to no longer protect the telecom sector from high electricity prices is estimated to cost the companies some EUR 300 mln.

(Photo source: Dreamstime.com)