Latvia’s Limited Radio Frequency Band Auction Results and Winners

The right to use the limited radio frequency band 3750-3775 MHz was awarded to LMT with the highest bid of 275,000 euros. On the other hand, the right to use the limited radio frequency band 3775-3800 MHz was granted to “Tele2” with the highest bid of 275,000 euros.

The proceeds of the auction amounting to EUR 550,000 will go to the state budget within six months.

In both cases, the right of use for commercial activity in the territory of Latvia is granted from January 1, 2024 to December 31, 2043.

The starting price of each lane was 250,000 euros. The auction for the right to use limited radio frequency bands was held in two rounds. The availability of the limited band is determined in accordance with the national radio frequency plan approved by the Cabinet of Ministers and the opinion of VSA “Elektroniskie Sakari”, which allows dividing the band into two 25 MHz blocks.

The limited frequency bands allocated as a result of this auction are in addition to the frequency range already in use.

Radio spectrum bands are a national scarce resource. Therefore, the right to use the radio frequency spectrum can be received, extended, canceled, transferred, leased or jointly used only by submitting a written request to PUC.

PUK is also obliged to evaluate the possibility of extending the term of the right to use a limited radio frequency band, taking into account the competitive conditions and conditions, in order to maintain and achieve effective competition with the adopted decision, including the proportionate distribution of limited radio frequency band resources, effective use, impact on the quality of service, the environment, as well as benefits to the public interest and benefits to consumers. The income from the auction of the radio frequency band goes to the state budget.

It has already been reported that LMT’s turnover in 2022 was 165.368 million euros, which is 3.5% more than the year before, but the company’s profit decreased by 6.8% and was 28.9 million euros. 49% of the capital of LMT belongs to the Swedish “Telia Company” and its subsidiary “Sonera Holding”, 23% of the shares are owned by SIA “Tet” and the Latvian State Radio and Television Center, and 5% by SIA “Possessor”.

On the other hand, the turnover of “Tele2” in 2022 was 165.803 million euros, which is 8.9% more than the year before, while the company’s profit increased by 3.9% – up to 33.106 million euros. The company was registered in November 1995, and its share capital is 3.486 million euros. The sole owner of “Tele2” is Sweden’s “Tele2 Sverige”.

2023-11-09 11:49:00
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