5G regulation and law in Romania

5G deployment has progressed relatively steadily to date, with commercial services becoming available in 2019 via   Romanian National Authority for Management and Regulation in Communications (ANCOM) actions in collaboration with industry operators. Once spectrum was reallocated, three major operators were able to launch commercial 5G services in 2019.

In November 2022, ANCOM conducted a highly publicised 5G auction, resulting in the allocation of 420 MHz of spectrum in the 700 MHz, 1500 MHz, 2600 MHz, and 3400-3800 MHz bands. As perofficial data from May 2024, there were more than 4,300 5G base stations belonging to the big four operators on the market, with operation in the 2.1 Mhz, 2.6 Mhz and 3.4 and 3.8 frequency bands.

5G network coverage is still limited to major urban areas including Bucharest, Cluj-Napoca, Oradea, Iași, Sinaia, Bușteni, Predeal, Timișoara, Craiova, Sibiu, Brașov, Poiana Brașov, Constanța and Mamaia.

According to ANCOM statistical data, the number of 5G connections increased by 25% in the first half of 2024, reaching 2.9 million (13% of the total) and  more than 12% of mobile internet traffic was made through 5G. However, ANCOM officials have indicated there is still need for improvement in respect to requests for 5G use and deployment and have pointed out that 4G technology is still the most widely used one in Romania. Hence, while 5G coverage is still in progress at a constant if slow pace, ANCOM expects that by 2026 5G will be the most used one in Romania. By 2024, the majority of the 5G networks deployed were based on non-Standalone (NSA) networks. 5G SA network-related deployment is however ongoing for specific areas with difficult connectivity, under specific operator projects   and with dedicated funding. 

To ensure a broad range of operators and industrial companies, both small and large, have access to frequencies, ANCOM previously set coverage requirements for the winning operators. These requirements mandated, among other things, that the operators must provide broadband services to at least 70% of the population, especially in urban areas, highways, international airports and modernised railways, as well as 240 localities currently not covered or poorly covered by mobile services.  In recent years, operators have strived to ensure coverage of more areas which involve geographical and network accessibility challenges. The Authority for Digitalization of Romania has also this year set forth a dedicated plan of action to ensure the efficient reach of digitalization targets by 2030, including in 5G deployment in Romania. The 5G network remains, however, primarily available in major cities and overall, the addressability of 5G technology is mainly aimed at the business segment, as well as areas with a very high user density  (eg: airports, malls, railway stations, university campuses, large buildings, ports), as well as rail and road transport corridors). To conclude, operators in the industry providing 5G as well as 5G+ network are progressively working to broaden accessibility in field at high quality including in challenging areas of the country.

On 19 September 2022, ANCOM launched an auction to grant licences for frequencies in the 700 MHz, 1500 MHz, 2600 MHz and 3400-3800 MHz bandws (also widely known as the “5G tender”).

In 2021 a smaller tender awarded licences for the 800MHz, 2600MHz and 3400MHz-3600MHz bands. Since both 2021 and 2022 tenders contained similar criteria, we will refer below to the 2022 tender.

ANCOM set up a competitive selection process, broadly similar to previous processes, which asked interested operators to submit an initial offer indicating the number of blocks they wished to purchase, and at which price. The tender provided for subsequent competitive rounds depending on the bidding scenario and the extent to which further rounds were necessary (until the spectrum could be awarded).

As an example, in the first primary round, the price for each spectrum category would be equal to the reserve price (minimum licence fee) for that category. In the next primary round, for any in-demand blocks, the tender commission would set prices above the reserve prices by a certain percentage (bid increment). The same price-setting rules would apply to any subsequent primary rounds. This means that whenever demand outstrips supply, the price for that category would be higher in the next round. When demand does not surpass supply, the price remains the same in subsequent rounds.

To participate in the auction, interested persons must submit an application to ANCOM and buy the Terms of Reference. This must demonstrate how the candidate would meet budgets and whether turnover reached at least EUR 10m in the previous year or had a subscribed and paid-in share capital as the RON equivalent of at least EUR 1m (USD 1.025m), that it was not in a state of insolvency or liquidation, its business was not handled by a bankruptcy judge, its commercial activity was not suspended, it was not part of another applicant’s group. The file must also contain the participation bond and the initial bid, which should indicate the number of blocks the applicant wishes to acquire in each available block.

The terms of reference said that licence holders must ensure the effective, rational, and efficient use of radio frequencies and avoid harmful interferences. Specific obligations included:

Coverage, which differs depending on frequency usage rights in the applicable MHz band, whether the holder would be a new entrant or an established market player, and the type of mobile communication services;

Deployment obligations (e.g., the winners in the 3400-3800 MHz band must deploy 2,200 base stations enabling a speed of at least 100 Mbit/s/20 MHz, installed domestically, with the number differing for each referenced city);

Service quality, for example the minimum network availability standard;

Compliance with certain technical and operational requirements.

Three operators were selected as follows:

A first operator acquired two blocks of 2x5 MHz in the 700 MHz FDD band, all eight blocks of 5 MHz available in the 1500 MHz band and 16 blocks of 10 MHz in the 3400-3800 MHz band, for EUR 264,607,669 (USD 271.3m).

A second operator won one block of 2x5 MHz in the 700 MHz band FDD and 10 blocks of 10 MHz in the 3400-3800 MHz band for EUR 122,503,374 (USD 125.6m).

A third operator won the four blocks of 2x5 MHz in the 2600 MHz FDD band and five blocks of 10 MHz in the 3400-3800 MHz band, for EUR 45,500,000 (USD 46.6m).

The licence fees, totalling EUR 432,611,043 (USD 443.6m) must be paid in instalments, with the first due on 8 December 2022, totalling (EUR 119m - USD 122m), and the last on 17 November 2028 (EUR 80,009,617 - USD 82m).

In the 700 MHz and 1500 MHz bands, the licences are valid for 25 years from 1 January 2023, while in the 3400-3800 MHz band the period is 22 years, from 1 January 2026. In the 2600 MHz band, the licences are valid from 1 January 2023 to 5 April 2029.

Operators had to provide broadband services to at least 70% of the population, most urban areas, highways, international airports and modernised railways, and mobile services to 240 locations that are currently not covered or are poorly covered.

ANCOM initially awarded licences that began in 2023 and also for 2026, with respective validity of 25 years and 22 years. Licences in the 2600 MHz band, however, will last six years and three months, in order to align with the other existing licences.

The total reserve price established by Government Decision no. 1139/2022 was EUR 693m (USD 710.6m). These prices were determined based on national and European benchmarks, the physical properties of the bands, existing rights in those bands, as well as the duration and usage conditions. The band value was set at: EUR 372m (USD 381.6m) for the 700 Mhz band, EUR 48m (USD 49m) for the 1500 Mhz band, EUR 13m for the 2600 Mhz band, and EUR 260m (USD 267m) for the 3400-3800 Mhz band. 

A reserve price (equal to the minimum licence fee for each block) was set for each block, plus eligibility points, which acted as a bargaining chip for rights to the respective blocks. Bidders could “acquire” eligibility points, which corresponded to a maximum amount of abstract (non-individualised) frequency blocks, in any band.

The fee would be paid in instalments during the first years of the licence.

According to the tender, the spectrum usage tariff for broadband wireless services was significantly reduced in the 1800 MHz, 2100 MHz and 2600 MHz bands. The new spectrum usage tariff in the 3400-3800 MHz band intended to reflect its value as a pioneer band for next-generation broadband wireless services.

The spectrum usage tariff was 30% lower in the 700 MHz, 800 MHz, 900 MHz and 3400-3800 MHz frequency bands, in order to reach medium and long-term national connectivity targets.

Implementation was widely debated by civil society, among others and the debate mainly related to environmental and public health factors. According to its latest public report (dated 2023), ANCOM indicated that it ensures constant monitoring of the electromagnetic field intensity by means of 200 fixed broadband monitoring sensors placed outside in public spaces in Bucharest and 141 other localities. . The results of these measurements are made available to interested parties via a dedicated electronic platform. The parties can access a map that also provides details with respect to the place, period and measured level of electromagnetic field intensity expressed as an absolute value and as a percentages compared to the maximum allowed regulated levels).

According to the 2024 action plan issued by the Authority for Digitalization of Romania, it is noted that ANCOM adopted several regulatory measures with a view to facilitating the introduction of 5G technology (among which, indicative tariffs for access to network operators, access tariffs for certain categories of network operators as public transport operators, and prices for access to buildings that are publicly owned).

Among possible concerns with respect to low demand for  5G, the same plan indicates:

• possible low level of digital skills among the population and businesses;
• possible burden of legal obligations involving massive investments for network operators with a view to eliminating equipment and software usage by unauthorized manufacturers, in accordance with the requirements of the 5G toolkit;
• the lack of updated information on the Geographical Information System (GIS) map regarding the availability or necessity of 5G network coverage;
• absence of needed correlation between the framework legislation on electricity and that of electronic communications, which is considered to bring difficulties in the authorization procedure as well as for the connection to the electrical network of the active elements of 5G networks.

However, it should be noted that ANCOM’s makes continuous efforts to ensure continuous deployment of 5G in Romania and  in its 2024 action plan has set out the strategic objective of reducing barriers to development of 5G networks (5G Strategy) and of promoting network  competitiveness.

The specific action initiatives to this end set forth by ANCOM include 5G-friendly infrastructures as well as the monitoring and regulation of the communications and postal services markets. ANCOM will aim to achieve these goals based on principles and standards recognized at the level of the European Union adapted to national specifics, strategy and national legislation and the best practices in the field.

Finally, we have not to date identified official data on decisions regarding non-compliance with 5G concessions related obligations.

ANCOM has previously announced that 5G licences in the 700 MHz and 1500 MHz bands will last 25 years, commencing 1 January  2023. Licences in the 3400-3800 MHz band will last 22 years, starting 1 January 2026. In the 2600 MHz band, the licences are purported to last from 1 January 2023 to 5 April 2029. The Authority has not yet officially announced any new tenders or long-term spectrum plan, although this is expected in the future.

Law no. 163/2021 (known as the 5G Law) provides mandatory obligations for 5G infrastructure and equipment providers, which must:

• not be under the control of a foreign government that lacks an independent legal system;
• have a transparent shareholding structure;
• not have a history of unethical corporate conduct;
• be subject to a legal system that enforces transparent corporate practices.

According to the 5G Law, this applies to all manufacturers/providers of technology, equipment and software used in information and communication infrastructure with a national interest or in electronic communications networks through which 5G services are provided.

Applicants must file the request with the Ministry of Transport, Infrastructure and Communications (MTIC), which will forward it to CSAT. The Prime Minister will grant authorisation on the recommendation of CSAT, which will issue an opinion within a maximum of four months from filing of a request.

Each applicant must submit information on its shareholding structure and corporate group, including detailed information on any parent company. Also, the applicant must file a statement on its liability, affirming that it is not under the control of a foreign government lacking an independent legal system.

CSAT will assess the risks, threats and vulnerabilities to national security and defence that an applicant's technology could present; the law explicitly allows CSAT to consider Romania's obligations under international cooperation and any bilateral strategic partnerships and we note that one such bilateral strategic partnership is Romania's 20 August 2020 Memorandum on 5G with the US.

Providers must only use 5G technologies, equipment and software from authorised manufacturers/providers and provide verification to ANCOM.

If a company’s authorisation is withdrawn, the company would still be able to continue using the equipment for another seven years (for networks) and five years (for core elements).

Failure to meet this condition can result in fines of between 1% and 5% of turnover. The same fine will apply to existing manufacturers/providers that fail to obtain authorisation after expiry of the five–year grace period.

Finally, providers that fail to provide information requested by ANCOM may be fined between 3% and 10% of turnover from the year before. Any fined operator would also be forbidden from using non-authorised technology.

According to the 5G tender conditions, operators may only use infrastructure/equipment provided by an authorised provider.

In December 2024, a draft law for amendment and completion of the 5G Law was adopted by the Senate of Romania and sent for debate and approval to the Chamber of Deputies of Romania, hence the legislative process is still unfolding to date. According to the form passed by the Senate, the scope of the law includes setting forth measures for the authorization of producers, distributors and integrators of technologies, equipment and software used in the IT and communications infrastructures of national interest, as well as in 5G electronic communications networks or subsequent (referring here to 6G ones), with a view to preventing, counteracting and eliminating the risks, threats and vulnerabilities against national security and protection.

While detailed rules are still expected for covering the sharing of 5G networks or spectrum, two operators in field in 2023 initiated a joint project for achieving a 5G Open RAN network which will include Open RAN network sharing in rural areas. The project was initiated as a pilot and was expanded in 2024, according to mass media sources.

As mentioned above, dedicated rules are still expected in line with ANCOM’s strategic actions.

As mentioned above, the scope of the draft enactment amending the 5G Law primarily covers matters related to security of 5G and subsequent networks (referring to 6G) and includes specific rules for the authorization of producers, distributors and integrators of technologies, equipment and software used in such. The draft law also provides that insofar as these will not be authorized, their technologies, equipment and software programs used in 5G and subsequent electronic communications services may be used up to 30 June 2030 at the latest, a term which may not be extended save for products in the network core, which may be used up to 30 June 2028 at the latest, a term which may not be subject to extension. However, only the final form, which may be issued after the legislative process ends, will offer a clear view on the respective provisions and their impact in field.

To date, there are various projects in Romania, as part of the wider Horizon Europe research programme financed by the European Union that studies 6G technologies and involves related support from operators in the industry.