The regulator is determined to bring the auction to a close, and in doing so has brought its relationship with MNOs to an all-time low
103 days in, the auction continues: In Portugal, the multiband spectrum auction to assign 5G frequencies has reached record lengths. It has been a difficult process from the outset, as the conditions made by the regulator ANACOM for the tender of licences attracted strong criticism from the country’s three MNOs. MEO, NOS, and Vodafone all lamented ANACOM’s failure to recognise their investments, and filed complaints to the European Commission for alleged state aid. Despite operators’ threats to desert the auction, the award started in November 2020 – and it has dragged on since then. Today marks 103 days of bidding.
A first attempt to speed up the process in April failed: One of the reasons for such slow progress is that operators have widely made use of the lowest increment possible in each round (1%) resulting in prices moving very slowly. In April, ANACOM tried to change the auction rules so that rounds would be shorter (15 minutes instead of 60) and the lowest increments would be ruled out, while continuing to allow increments of 5%, 10%, 15%, and 20%. The move further angered the operators, which found the attempt ‘disrespectful’ since the auction was already ongoing. The auction continued under the initial rules, though ANACOM wasn't giving up.
ANACOM seeks a compromise, but it will struggle to get out of this mess: Today, a new consultation is closing, on a proposal which sits halfway between the initial rules and the April proposal. ANACOM is now trying to bring the number of daily rounds to 12, lasting 30 minutes each, and allowing 1% and 3% increments. The regulator warned that ruling out the lowest increments could be a further option if the award continues to drag on. Despite these less radical changes, operators have once again lashed out at ANACOM. Vodafone noted that the changes mean the teams involved will have to work uninterrupted for 10 hours a day and have less time for decision-making between rounds, and threatened legal action if they are approved. MEO and NOS made comments along similar lines, laying the blame squarely on ANACOM for the failures. The regulator has positioned itself into a corner, having alienated the industry. It desperately needs to find a way to wrap up the auction to avoid an already delayed 5G rollout in the country.
