August 17, 2023 10:53

Cellfie Mobile Wins the 5G Auction

The Communications Commission has declared Cellfie Mobile the winner of combined lot N2 in the auction for the implementation of 5G mobile internet. The company will be allotted 700 MHz and 3400-3600 MHz frequency ranges. Based on the conditions set by the Commission, in return for obtaining the right to use the aforementioned frequency resources, as well as a 20% discount (bringing the fee down to a total of GEL 2,657,445), Cellfie Mobile will have an obligation to allow a mobile virtual network operator (MVNO) access to its infrastructure. According to the rules of the auction, the operator will be given 1 month to obtain a license and pay 30% of the aforementioned fee into the state budget.

The Communications Commission announced an auction for 4 combined lots for the implementation of 5G internet. Only Cellfie took part in the auction despite the fact that the Commission took full account of the concerns expressed by major operators Magticom and Silknet regarding the terms of the auction. Specifically, in order to obtain the frequencies needed to implement the 5G technology, the operators initially had a duty to allow mobile virtual network operators (MVNOs) access to their infrastructure for all 4 combined lots, for which they would obtain additional discounts. However, in order to allow the process of implementation of 5G to proceed smoothly, the Commission agreed to the demand by Magticom and Silknet to auction off one combined and two separate lots without the duty to give MVNOs access to infrastructure. Nevertheless, the two major operators, who hold a combined share of more than 70% of the Georgian telecom market, declined to participate in the auction.

5G is a new generation of wireless internet technology that will significantly increase mobile internet speed compared to the existing technologies, decrease interruptions and take key sectors such as communications, healthcare, education, business, agriculture and infrastructure to a new level, which will inturn strengthen the country’s economy.


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