3G frequencies to be assigned in Iceland

January 11, 2007

The Post and Telecom Administration in Iceland has sent out an invitation for a tender for the right to use certain frequencies for IMT-2000/UMTS standard 3G mobile services. The tender procedure, which is based on a "beauty contest" approach.

Up to four licences will be assigned. Following a consultation with stakeholders the tender was advertised on December 28th. and will close at 11 o'clock on March 12th.

Four technically identical frequency blocks in the UMTS frequency band are offered, all covering the whole country and each providing 2 x 15 MHz FDD and 5 MHz TDD, summing up to 35 MHz each:

1) 1920-1935MHz / 2110-2125MHz and 1915-1920MHz
2) 1935-1950MHz / 2125-2140MHz and 1900-1905MHz
3) 1950-1965MHz / 2140-2155MHz and 1905-1910MHz
4) 1965-1980MHz / 2155-2170MHz and 1910-1915MHz

Minimum demands are set for population coverage within certain areas and speed of network construction.

The country is divided into four areas and shall the IMT-2000 service reach 60% inhabitants of each of them.

The areas are:
a) The metropolitan area
b) The West-Iceland, Westfjords and the western part of North-Iceland
c) The eastern part of North-Iceland and Eastern-Iceland
d) South-Iceland and Sudurnes in Southwest-Iceland

The speed of coverage shall be in four steps:

T1: 1 year and 6 months to reach 40% of inhabitants of all Iceland. Free choice of areas.
T2: 2 years and 6 months to reach 30% of inhabitants of each area, a), b), c) and d).
T3: 4 years to reach 60% of all inhabitants of each area, a), b), c) and d).
T4: 5 years and 6 months to reach 60% - 75% of the summarised number of inhabitats in areas b), c) and d).

The duration of the right to use the frequencies is 15 years per each block.