The total floor price for the 5G spectrum auction to be held at the end of the year is NT$30 billion (US$954.1 million), the National Communications Commission (NCC) said on Wednesday, adding that telecoms interested in participating could start submitting applications on Wednesday next week.
The commission earlier this month said that it planned to release 2,790 megahertz (MHz) of bandwidth for 5G services — 270MHz in the 3.5 gigahertz (GHz) frequency band, 2,500MHz in the 28GHz band and 20MHz in the 1,800MHz band.
Bidding for bandwidth in the 3.5GHz band is expected to be fierce, as it is supported by more mature technologies, the NCC said.
The bandwidth in the 3.5MHz band would be divided into 27 bidding units, with each unit consisting 10MHz and costing NT$900 million, NCC acting spokesperson Hsiao Chi-hung (蕭祈宏) said, adding that the total floor price would be NT$24.3 billion.
Each telecom can obtain no more than 100MHz in the 3.5GHz band, the commission said.
The 28GHz band, on the other hand, would have 10 bidding units, each consisting of 100MHz and costing NT$100 million, Hsiao said, adding that the total floor price would be NT$2.5 billion.
The 1.8GHz band would have one bidding unit consisting of 20MHz, with a floor price of NT$3.2 billion, he said.
The floor price for the nation’s first 5G auction is lower than that for the 3G auction (NT$33.6 billion) and for the first 4G auction (NT$35.9 billion).
Earlier this month, local media reported that the commission originally planned to set the floor price at NT$1.5 billion, but Premier Su Tseng-chang (蘇貞昌) had said that the nation could secure at least NT$40 billion through the auction.
Asked how the floor price was determined, the commission said that it hired a consulting firm to study 5G auctions in other nations.
Commissioners discussed the firm’s suggestions before making a final decision, it added.
The Telecommunication Management Act (電信管理法), which was promulgated on June 26, would allow telecoms to share the use of 5G bandwidth, core networks and cell stations under certain conditions, Hsiao said.
The Executive Yuan has yet to announce when the law will be implemented, so the commission is drafting enforcement rules in subsidiary regulations, he said, adding that part of the rules would be unveiled by the end of this year.
Telecoms that do not secure any of the 5G spectrum could apply to share use of the bandwidth, core networks and cell stations after the law is implemented, he said.
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