Auctioning could be introduced in radio frequency management also in Finland. A working group of the Ministry of Transport and Communications considers that a market-based frequency management model could be applied to certain frequency bands. It would also be possible to resell a licence for providing communications services within a certain band.
Today the licences are granted at the Government's discretion, i.e. by means of a beauty contest. The working group submitted its proposal to Ms Suvi Lindén, Minister of Communications, on 29 April.
According to the working group a market-based model in frequency management could increase competition, facilitate the entry of new enterprises into the market, and improve the quality and availability of communications services. In accordance with the Government programme the use of frequencies should also be made more flexible.
The working group estimates that frequencies could be commercialised in Finland at the end of 2009, at the earliest. A frequency band of 2.5-2.69 GHz, to which a market-based model could be applied, will be released for further use as of the beginning of 2009.
A market-based frequency management model could be implemented either on the basis of an auction or through a reformed beauty contest. If auctioning was used, the highest bid would win. However, an enterprise would not pay the whole sum at once but annually in equal instalments.
In a beauty contest the model would include an operating licence fee based on the market value of the frequencies. This so-called administrative incentive fee would be paid annually by telecommunications operators. In both commercial models the telecommunications operators would pay the normal frequency fees for radio licences.
