AGCOM will have to set higher renewal fees than the last time – but there is every reason to expect a lengthy battle between operators with different interests
WiMAX operators get to use the band until 2023: The Italian regulator AGCOM is redefining the fees operators will have to pay for the renewal of 3.5GHz licences, following successful legal challenges from mobile operators. This spectrum was awarded in 2008 to several WiMAX operators – Aria (Tiscali), Go Internet, Linkem, Mandarin, TIM – with the option of a six-year extension upon the initial expiry in 2023. In 2018, the Government granted the renewal of these licences, with the exception of TIM’s. AGCOM set the price for the renewal based on the reserve price for the 3.7GHz band which was about to take place, resulting in a total €70.9m for the four operators.
MNOs felt hard done by after the 5G auction: The Italian 5G auction of 2018 turned out to be one of the most expensive by international comparison, including for the 3.7GHz band. For that spectrum alone, Italian MNOs paid a whopping €4.34bn. This led operators to legally challenge the decision on the contributions for the 3.5GHz band. This was even more important in light of the wholesale agreement between Tiscali and Fastweb, through which the latter obtained access to Tiscali’s 3.5GHz spectrum for €198m – a steal compared to what MNOs had paid in the 5G auction.
This could still be a lengthy saga: A tribunal upheld operators’ challenges, and ruled that, while the renewal was legitimate, the contributions had to be reviewed by taking the results of the 3.7GHz auction into account. The text of the consultation AGCOM just published already suggests that a heated confrontation could be on the cards. The regulator notes that it has to take into account the price for the 3.7GHz spectrum, but not necessarily set the 3.5GHz price in the same way, and warned of a competitive distortion that could harm the current occupiers of the 3.5GHz band. It also remains to be seen whether the new price will be viable for the current occupiers of the band – significantly smaller operators compared to the MNOs that acquired the 3.7GHz spectrum. There is every reason to expect a lengthy battle between players with different interests.
