Italian authorities expect to raise at lest $2.9 billion with the sale of 5G spectrum

Italy’s Ministry of Economic Development (MISE) has announced that seven mobile carriers will participate in a 5G spectrum auction scheduled to begin next month.

The participating companies will be Telecom Italia, Illiad, Fastweb, Vodafone Italia, Wind Tre, Linkem and Open Fiber. Italian authorities are expecting to raise at least €2.5 billion ($2.90 billion) with the sale of 5G frequencies.

MISE approved the 5G tender process in July 2018. Telecom regulator Agcom previously confirmed that the tender will include the auction of frequencies in 694 MHz to 790 MHz; 3.6 GHz to 3.8 GHz; and 26.5 GHz to 27.5 GHz bands.

MISE said that local carrier Illiad confirmed it will bid for spectrum in the 700 MHz band. The frequencies in the 700 MHz band, which are expected to be awarded by the government for 5G, are currently used by several TV groups including Mediaset, state broadcaster RAI and Cairo, which would all have to free up the spectrum.

The regulator added that two blocks of 80 megahertz and two blocks of 20 megahertz will be made available in the 3.6 GHz to 3.8 GHz bands, while five lots of 200 megahertz will be available in the 26.5 GHz to 27.5 GHz bands.

Agcom also highlighted that the rules for the upcoming tender process are designed to help to create new entrants which focus purely on infrastructure.

MISE also said all participants should submit their initial bids by September 10.

Italian operators are currently carrying out several trials to pave the way for the launch of commercial 5G services in the country.

Last month, Vodafone Italia announced the completion of what it claims to be the first 5G data connection in Italy via New Radio Non-Standalone (NSA) standards. The company used Huawei and Nokia networks and devices in the 3.7-3.8 GHz band made available by MISE to complete the connection in the city of Milan.

In March of this year, local carrier TIM, together with compatriot broadband provider Fastweb and vendor Huawei, announced the activation of the first 5G antenna in the city of Matera as part of a 5G trial being promoted by the Italian government. The BariMatera5G project will allow the Italian cities of Bari and Matera to be among the first areas in the world to be covered by the new generation of mobile technology.

Earlier this year, Huawei announced the completion of the first 5G trial in the city of Turin, in Italy, in partnership with TIM and Fastweb. Huawei said a net throughput of more than 3 Gbps has been achieved using 100 megahertz of spectrum. The 5G trial also reached a spectral efficiency of 30 bits/second/hertz, which is about seven times higher than advanced 4G technology.

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