The RTR published the consultation for the second 5G auction, with an incentive mechanism for coverage.
Background: The Austrian regulator RTR completed its first 5G auction in Q1 2019. In March 2019, seven bidders won licences in the 3.4–3.8GHz for a total €187.7m. Since then, the regulator has been busy preparing a new 5G auction, across the 700MHz, 1.5GHz, and 2.1GHz bands, with a view to allocating licences longer than 20 years.
An innovative auction design with a bonus system: The RTR has now published the consultation paper for the upcoming award. The draft has two noteworthy aspects. Firstly, the auction design is in two stages (the 700MHz will be awarded in the first stage, while the 1.5GHz spectrum will be allocated in the second); secondly, there is a ‘bonus system’ through which the RTR aims to cover more than 900 of the circa 2,000 poorly served areas of the country. The bidders would ‘bid for’ communities to be supplied, and receive a ‘virtual bonus’ in the form of a rebate on the bids placed in stages 1 and 2 of the award. Coverage obligations will also be set for roads and railways in order to promote innovation in autonomous driving and mobility in trains.
The MVNO access requirement is waived: The RTR had initially set out a requirement for mobile operators to grant access to MVNOs. Due to a recent reassessment of the market, the regulator has now concluded that such a requirement is not necessary. The consultation runs until 23 October 2019; the RTR then aims to run the auction in the Spring of 2020.
