null Government decides on the terms of the 5G auction

Government decides on the terms of the 5G auction

Press release 09.04.2020 13.00 fi sv en

Picture: Ministry of Transport and Communications

On 8 April, the Government issued decrees on the auctioning of the so-called 26 GHz spectrum and on amending the Decree on Radio Spectrum Usage and Frequency Allocation Plan. The Ministerial Finance Committee endorsed the adoption of the Decrees.

The Decrees will enter into force on 15 April and applications for the frequencies are invited as of 21 April. The introduction of a new spectrum makes it possible to construct high-speed 5G mobile networks.

“Finland is among the leading countries in the world in the introduction of 5G. The first licences for the 3.5 GHz spectrum were granted already in 2018, the network construction has been in progress for more than a year, and the users already have efficient 5G subscriber connections. The 26 Ghz spectrum that is now being auctioned will significantly increase the capacity,” says Minister of Transport and Communications Timo Harakka.

The 26 GHz spectrum is suitable for providing high connection speeds, for example in cities, transport nodes and public events.

“With the advanced spectrum allocation programme, we have reached a situation where the percentage of mobile data use by Finns is the highest in the world, prices are low and quality high. This auction will strengthen Finland’s leading position in network technology innovations,” says Minister Harakka.

The provisions on the spectrum-specific details, including the number and price of the frequencies to be granted, are laid down in the so-called Auction Decree, while provisions concerning the spectrum to be auctioned are included in the so-called Spectrum Decree. 

The so-called 26 GHz spectrum covers the frequencies of 24.25–27.5 GHz. In the auction, the frequencies of 25.1–27.5 GHz will be auctioned for national use in mainland Finland as three 800 MHz frequency bands. The starting price in the auction will be EUR 7 million per each 800 MHz frequency band.

The lower part of the spectrum, 24.25–25.1 GHz, that is the frequency band of 850 Mhz, will be excluded from the auction. The spectrum will be reserved for the construction of local networks. In future, local networks could be constructed in ports and industrial facilities, for example.

5G networks can be used to implement high-speed and wireless data transfer connections that in future will facilitate new digital services and business activities in industry, transport and healthcare, for example. 

What are the next steps?

Registration for the auction will begin on 21 April and the auction of frequencies on 8 June. The auction will be arranged by the Transport and Communications Agency Traficom. The spectrum to be auctioned can be used for the construction of 5G networks as of 1 July 2020. 

Inquiries:

Kaisa Laitinen, Senior Ministerial Adviser, tel. +358 295 34 2608, Twitter @kaisa_laitinen