The end might now be in sight, but the journey of repairing the relationship with the industry is only just beginning
One of the most cursed spectrum awards of recent times: Portugal’s 5G auction has been fraught with difficulty from the outset, with the conditions set by the regulator ANACOM attracting strong criticism from the country’s three MNOs. MEO, NOS, and Vodafone all lamented ANACOM’s failure to recognise their investments, and filed complaints with the European Commission for alleged state aid. Despite operators’ threats to desert the auction, the award got under way in November 2020. Today marks 152 days of bidding.
Playing with the rules mid-auction has exacerbated tensions between ANACOM and the MNOs: The regulator made a first attempt in April to bring the auction to an end once it was clear it was dragging on. But by attempting to change the rules mid-auction only angered the operators (who lamented ANACOM’s disrespectful and unprofessional behaviour), and eventually led to a climb down. In June, the regulator found a compromise by shortening each round (12 daily rounds instead of seven). At the time, ANACOM warned operators it would make further changes and rule out the lowest price increments (1% and 3%) should the auction continue for much longer. As the days of bidding went on, that is exactly what ANACOM went on to propose last week.
It’s now in everyone's interests to wrap it up: The regulator made its mind up on this further change some time ago – the one week window for stakeholder responses says everything. Operators have been less vocal publicly this time about their discontent, but did so on previous occasions – even calling for the resignation of the head of ANACOM. This time they may just have to go along with the changes.The Government is putting pressure on them and the regulator to end an auction that should have been wrapped up in March. With the Government saying it has no intention to extend the deadlines operators face to meet the coverage obligations (between 2023 and 2025) there is now every incentive to conclude the proceedings.
Source: https://www.anacom.pt/render.jsp?contentId=1695741&languageId=1
