Bulgarian Communications Regulatory Commission should restart the tender for 5G frequencies

The creation of virtual mobile operators will lead to lower prices and better services for consumers

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The Bulgarian Communications Regulatory Commission (CRC) has unlawfully terminated and must resume public consultations on the allocation of frequencies for 5G. This was decided by the Bulgarian Supreme Administrative Court (SAC) on March 13, 2023, as a result of a complaint filed by Mobile Alternative Communications (MAC).

Mobile Alternative Communications was established in 2017 by five Bulgarian telecommunications companies - Neterra, Telecable, Scat, Net1 and Telesim. The main goal of MAC is to create an alternative mobile operator (MVNO). There are such operators in all European countries, except for Bulgaria.

"The decision is extremely important. It shows that the state, in the form of the judiciary, ensures that the procedures for the allocation of resources - exclusive state property - are carried out legally and protect the interests of the Bulgarian consumer", commented Neven Dilkov, executive director of Neterra.

According to the founder and executive director of Telekabel Angel Vassilev, "Allowing competition in the networks of mobile operators through the creation of virtual mobile operators will lead to lower prices and better quality services not only for mobile, but also for fixed telecommunication services and will create new perspectives for dozens of small and medium-sized cable operators in Bulgaria.”

What is the problem according to MAC?

Bulgaria has historically been one of the countries with the best internet in the world thanks to the high competition of many telecommunications operators who have developed their networks.

However, in the last 10 years, the logical process of consolidation and the entry of mobile operators into the market of fixed services in the home, which include Internet and TV, has led to a sharp decrease in the number of active operators providing services in the market. As a result, Bulgaria fell in the world rankings for quality and cheap internet.

The only telecom services that, according to CRC reports, show serious growth are bundled offers with included mobile services. The prices of these services have been rising continuously for 2 years, which further complicates the situation for the Bulgarian consumer.

"In order to protect the interest of the Bulgarian consumer, the state and the regulatory authorities must encourage competition in the market by creating the conditions for more companies to provide mobile service through the world-known virtual mobile operators (so-called MVNOs). Bulgaria is the only country in Europe and almost in the whole world where MVNOs do not exist. In our country, they are not prohibited, but the mobile operators refuse to allow them in their network", commented Mobile Alternative Communications JSC.

In this regard, MAC proposed to the CRC to bind licenses for 5G frequencies with an obligation for the three Bulgarian mobile operators to open their networks for MVNOs. This proposal was not considered by the regulator.

"We believe that when organizing the new procedure for allocating frequencies for 5G and in the context of rising service prices, CRC will protect the interest of consumers and create real conditions for the launch of alternative mobile operators in Bulgaria. The promotion of the sharing economy will lead to a favorable development of the entire market - lower prices for consumers, lower costs for businesses (including mobile operators), a more sustainable economy of the country", MAC said.