5G frequency license auction to start Tuesday

TALLINN - An auction for the issuance of frequency licenses in the first 5G frequency band 3,410-3,800 MHz is to kick off on Tuesday with altogether four communications companies vying for three frequency licenses.

Minister of Entrepreneurship and Information Technology Andres Sutt said that Tuesday's auction day has been anticipated for a very long time by both telecommunications companies and ordinary users. "Disputes over 5G have been going on for more than three years, with a total of seven IT ministers working on the issue. Therefore, we are pleased that today we can finally announce the first 5G auction, and soon companies will be able to bring the long-awaited ultra-fast 5G internet to users," Sutt said.

According to him, the 5G internet connection opens a whole new horizon for different companies and users to create new solutions currently unimaginable. "In hindsight, it might seem that technological development in the last 15 years has been extremely fast, but thanks to 5G and other technologies, this development will be many times faster in the coming years," the minister said.

In order for 5G technology not to be limited to cities, the conditions of the competition stipulate the obligation to establish 5G base stations also outside Harju County. "This guarantees that the high-speed internet based on 5G technology will also reach outside the golden circle of Tallinn at a rapid pace," the minister added.

According to Sutt, 5G data will likely reach users in the coming months and intense competition between communications companies will help accelerate this further. "Whereas in the past the state has been the brake on 5G technology, this brake has now finally been released and the further speed of construction of 5G networks depends on the telecommunications companies. The offer of three frequency licenses between four telecommunications companies ensures stronger competition and favors those who have a clear plan and goal to build a 5G network in Estonia and thus bring new services to the market as soon as possible," the minister said.

The competition is carried out by the Estonian Consumer Protection and Technical Regulatory Authority (TTJA) and all four companies that submitted an application for the 5G frequency license auction -- Telia Eesti AS, Elisa Eesti AS, Tele2 Eesti AS and BITE Lietuva UAB -- qualified for the auction.

The frequency range of 3,410-3,600 MHz will be divided into three equal parts of 130 MHz. The frequency licenses will be issued on the basis of an auction. The first round of bids in the auction will take place on Tuesday and the duration of the competition will depend on the number of rounds of bids per frequency license. The starting price of each competition object is 1,597,000 euros. TTJA forecasts that the frequency licenses submitted for the competition will be issued in June this year, after which it will be possible for telecommunications companies to start building 5G networks in Estonia.

More detailed information on the procedure for conducting the competition, the terms for the participants and the procedure for submitting applications is available on the TTJA website at https://ttja.ee/ariklient/ametist/avalikud-konkursid/avalikud-konkursid-ja-arutelud#avaliku-konkursi-jt.