5G: operators know their positioning
The Arcep, by putting an end to the call for tenders for 5G frequencies, has just delivered the positioning of operators on the 3.5 GHz band.
Only Free will have spent 3 million euros to secure a central position in the 5G "queen band". Iliad's French subsidiary will have access to 70 MHz of frequencies on a block ranging from 3.64 GHz to 3.71 GHz.
In detail, SFR will have 80 MHz of frequencies on a block ranging from 3.49 GHz to 3.57 GHz, while the 70 MHz of frequencies held by Bouygues Telecom will be located between 3.57 GHz and 3.64 GHz. Finally, Orange, which holds the largest block of frequencies, with 90 MHz of 5G frequencies, will have a block ranging from 3.71 GHz to 3.80 GHz.
During this second phase of the auction, the operators have disbursed a total of 2.78 billion euros. Bouygues Telecom paid 602 million euros to acquire 70 MHz of frequencies in the 3.5 GHz band, as did Free, which added 3 million euros to this sum to benefit from the positioning of its choice. For its part, SFR invested 728 million euros to get its hands on 80 MHz of frequencies, while Orange spent 854 million euros to get its hands on 90 MHz of frequencies in the 3.5 GHz band.
350 million spent by each operator to purchase fixed 50 MHz blocks will be reimbursed "in 15 equal parts over 15 years, the first part upon the award of the frequency license and the other 14 parts on the anniversary date of the award".
The amounts paid by the operators during the auction and positioning phase will be repayable "in four equal parts payable over four years, the first as soon as the authorization to use the frequencies is granted and the other three on the anniversary date of the grant".
"In addition to these sums, a variable annual portion equal to 1% of the revenues generated by the operation of these frequencies will be added to these amounts," said the telecom police officer.
The frequencies will be officially delivered by the Arcep as of November 18th. But operators will still have to wait for the ANFR's approval before they can market their first 5G offers to the general public and professionals, which should take about 10 additional days.
Concerning the marketing of 5G packages, the operators have not yet made their strategies known. In any case, they will have to wait for the approval of the municipalities to officially launch the 5G era among users. If patience is therefore required, operators are already beginning the major maneuvers to lower the cost of their 5G infrastructure.
Source : ZDNet