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Ukraine: Tender for 4G-Communication Licensing

Ukraine
17/11/2017
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On 9 November 2017, the National Commission for the State Regulation of Communications and Informatisation of Ukraine (the "Commission") announced a request for tenders to award licenses for 4G communication technology (LTE) in 2600 MHz frequency.

1. Offered Lots

The Ukrainian government is offering in each region of Ukraine six licenses for 10 MHz range and one license for 20 MHz range, in the following frequency bands:

  • Lot 1 (20 MHz) 2540-2545, 2565-2570/2660-2665, 2685-2690 MHz,
  • Lot 2 (10 MHz): 2535-2540/2655-2660 MHz,
  • Lot 3 (10 MHz): 2530-2535/2650-2655 MHz,
  • Lot 4 (10 MHz): 2525-2530/2645-2650 MHz,
  • Lot 5 (10 MHz): 2520-2525/2640-2645 MHz,
  • Lot 6 (10 MHz): 2510-2515/2630-2635 MHz,
  • Lot 7 (10 MHz): 2515-2520/2635-2640 MHz.

Each license will be valid for a period of 15 years.

2. Price for a License and Conversion Costs

The starting prices are UAH 572 million (ca. EUR 18.5 mln) for Lot 1 (20 Mhz) and UAH 286 (ca. EUR 9.25 mln) for Lots 2 - 7.



In addition, each winning bidder will have to bear the cost of technical conversion to release the new frequencies allocated to the current user - MMDS-Ukraina LLC. The suggested cost for this conversion is UAH 125 million (ca. EUR 4 mln) for Lot 1 and UAH 62.5 (ca. EUR 2 mln) for Lots 2 – 7.

3. Tender Procedure

The government is accepting bids from 13 November to 22 December 2017.

The licenses will be awarded at a live auction (unless only bidder has applied) on 23 January 2018.

4. Commitments of the Winning Bidders

Each winning bidder will have to install at least one 4G network base infrastructure in each of the region of Ukraine (27 in total) within 5 years of the date of the license issuance.

The Commission is expected to announce tenders for 4G communication technology licenses in 1800 MHz frequency soon.

Legislation:

Decision of the National Commission for the State Regulation of Communications and Informatisation of Ukraine “On Approving Terms and Conditions of the Tender for the Assignment of Licenses on the Use of Radio Frequency Resources of Ukraine for the implementation of Radio Technology “Digital cellular communication IMT” in radio frequency bands: 2510-2545 Mhz, 2565-2570 Mhz, 2630-2665 Mhz, 2685-2690 Mhz” No 575 dated 7 November 2017.

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