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Telecom
June 2020 www.intellinews.com I Page 15
Poland to cancel 5G frequency auction
Poland’s telecom market watchdog UKE will cancel the auction of 5G frequencies that was supposed to take place on April 23, the UKE said on May 20.
The announcement follows the UKE’s earlier decision to delay the auction to an unspecified date because of the disruption caused by the coronavirus (COVID-19) pandemic in Poland.
The UKE “initiated proceedings regarding the annulment of the auction for four frequency reservations in the 3.6 GHz band,” the watchdog said in a statement. It did not announce a new timeframe.
The cancellation could lead to Poland not meeting the EU’s timeline of rolling out a 5G network. “Every member state will identify at least one major city to be "5G-enabled" by the end of 2020 and that all urban areas and major terrestrial transport paths have uninterrupted 5G coverage by 2025,” the European Commission said in its 2016 “5G for Europe: An Action Plan” document.
Poland expected up to PLN1.9bn (€419mn) in revenue from the auction, a welcome addition
to the country’s budget, strained by efforts to contain the coronavirus and the economic crisis that is unfolding in the wake of the epidemic. The starting price of each block is PLN450mn (€99.2mn).
The auction was to cover four frequency reservations in the 3480-3800 MHz band,
UKE said. Once it goes ahead, Polish telecom operators are expected to race for 80 MHz blocks in each of the four frequency reservations. The blocks will be valid until the end of June 2035.
The auction winners will be obliged to launch a minimum of 700 base stations using the allocated frequencies by the end of 2025, resulting in at least 2,800 5G stations across Poland by that time.
Earlier this year, Warsaw-listed Polish media and communications company Cyfrowy Polsat said that it would build a commercial 5G mobile data network in seven big Polish cities throughout
the first quarter. Unlike competitors Orange, T-Mobile, and Play, the company is yet to confirm it will take part in the bidding.
Russia's MTS posts solid results in 1Q20, confirms dividends
Russian telecom major Mobile TeleSystems reported 9% year-on-year revenue growth in 1Q20, while mobile revenues in Russia accelerated top line growth to 7% y/y. Ebitda was up by 1.6% y/y, while net income inched up by 1% y/y.
MTS is an anchor asset of the AFK Sistema multi- industry investment conglomerate. Most recently the company announced a buyback of its shares and is seen as one of the most attractive dividend payers in Russian equity.