Frequencies in Russia only to be allocated at auction - ministry
MOSCOW. Jan 29 (Interfax) - The frequency spectrum for wireless communications in Russia will only be allocated through auctions, not tenders.
Changes to the system for allocating frequencies are envisaged in the concept of a new law on telecommunications, which is being compiled now, Deputy Telecoms Minister Denis Sverdlov told the press.
The new law will not envisage the option of distributing frequencies through tenders. Even frequencies requiring conversion will be offered at auction, Sverdlov said.
It has not yet been decided whether the frequencies sold at auction will be technologically neutral, he said.
He did not say what the expected cost of the frequencies would be.
The new law will make it possible to sell frequencies to operators but the sold frequencies will come with obligations on network development time and service quality.
Operators that want to build with a different technology on existing frequencies will have to pay a certain amount into the budget and undertake to develop their networks within a certain time and provide quality services. This is aimed at increasing operator responsibility, he said.
Current sector legislation virtually prohibits frequency auctions and frequencies are always allocated through tenders. The Telecoms Ministry is drafting amendments to remove obstacles to auctions.
"Trading through an auction, in our opinion, is more democratic and transparent compared to tenders and it also brings money in to the country's budget and allows for subsidies for telecom network development," Telecoms Minister Nikolai Nikiforov said earlier.