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Norway’s first 5G auction begins with discounts in return for coverage

The NKOM is awarding 700MHz and 2.1GHz frequencies.

Background: Norway’s National Communications Authority (NKOM) has been working on its first 5G auction for some time. On 4 April 2019, it finalised the framework with the rules for the procedure, and announced the auction would begin today (3 June 2019).

What’s on offer? The NKOM is auctioning spectrum in the 700MHz band (2x30MHz, divided into six 2x5MHz lots) and in the 2.1GHz band (2x15MHz, divided into three 2x15MHz lots). Spectrum caps apply: no operator will be allowed to hold more than 2x35MHz across the 450MHz, 700MHz, 800MHz and 900MHz bands; and a 2x20MHz limit applies to each of the 700MHz and 2.1GHz bands, including existing holdings.

Discounts in return for coverage: The 700MHz band is subject to coverage requirements. Winners must provide mobile broadband to 40% of the population within five years, at an average download speed of at least 5Mbps. Two coverage blocks will have requirements for coverage of specific roads and railways by 2025. Any operator undertaking to cover national roads is given a discount on the spectrum price of up to NOK40m (USD4.58m). Also, for the first time, winners of licences will be allowed to postpone payment of parts of their auction prices, if they commit to invest NOK250m (USD28.6m) in new and better coverage over the next two years.

Next steps: Once the spectrum is awarded, the 700MHz licences will be valid for 20 years (until the end of 2039). Tthe 2.1GHz lots will expire together with other lots in that band, in 13 years from now (31 December 2032).