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Bulgaria's telco regulator seeks 5G rollout resolution after legal challenge

Published 03/15/2021, 06:36 AM
Updated 03/15/2021, 11:20 AM
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By Tsvetelia Tsolova

SOFIA (Reuters) - Bulgaria's telecoms regulator said on Monday it would seek ways to speed up the commercial rollout of 5G wireless networks after telecoms operator Vivacom contested in court its decision to allocate three 5G licences.

The Communication Regulation Commission (CRC) decided to close a 5G auction and grant each of the country's three major telecoms operators a licence in the 3.6 GHz spectrum without competition after reviewing their applications for the process.

Bulgaria's leading telecoms firm Vivacom, controlled by United Group, has started legal proceedings over the way the licences were assigned, a court filing showed, a process that could take months or years and seriously delay the development of the country's 5G networks.

"We will hold a meeting and seek ways to move forward because it is in the national interest to speed up the process, if it is possible. If not, it will be left in the hands of the court," CRC head Ivan Dimitrov told Reuters.

Dimitrov said he expects the regulator to find a solution, pointing out that even if it issues the licences they cannot be enforced before the court rules on Vivacom's complaint.

Two industry sources familiar with the situation said one way out might be to hold a new auction for the licences, which Vivacom has asked for in its complaint to the court.

Vivacom declined to immediately comment when contacted by Reuters.

A1, part of Austria's A1 Group controlled by Mexico's America Movil (NYSE:AMX), and Telenor Bulgaria, owned by Czech investment group PPF, said they were satisfied with the allocated frequencies.

"We will consider accepting any change to the regulator's decision if it is the only transparent and stable way to acquire 5G spectrum," Telenor Bulgaria said in an email statement.

A1 also said it may consider other options, adding it was surprised by Vivacom's appeal.

"This is a dangerous approach, which could have very grave consequences for 5G development and economic recovery in Bulgaria," A1 said.

The CRC initially planned to auction three 20-year licences each with an initial price of 4 million levs ($2.44 million), but reviewed its decision on March 10 after examining the applications.

($1 = 1.6390 leva)

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