Mobile/Wireless Broadband Spectrum Refarming/Liberalization

Mobile/wireless Broadband Spectrum Refarming/liberalization www.gncc.ge

Georgian National Communications Commission www.gncc.ge Georgian National Comm Georgian Uted to cope withincreased mobiledata traffic EU trends - .-.,3438GHz 2.5-2.7, 3.4-3.8 Allocate additional( bands formobile/wireless broadband Find and harmonize additional spectrum to 700MHz , 1.5, 2,2.3-2.4, 3.8-4.2GHz 1.5, , 700MHz unications Commission ) spectrum 800MHz, cope with future demand Candidate bands: Main Trends Liberalize licenses technology and pcrmbns–make spectrum bands– service neutralservice 0/8020 MHz 900/1800/2100 www.gncc.ge Bands Harmonized for Mobile/Wireless Services atLevel EU Services for Mobile/Wireless Harmonized Bands Georgian National Comm Georgian 4030 ECC/DEC/(07)02 155MHz ECC/DEC/(05)05 2x75MHz ECC/DEC/(09)03 3400-3800 ECC/DEC/(06)01 2600MHz Dec2009/766/EC MHz 800 2009/114/EC Dir 2100MHz MHz 1800 CEPT&EC 900 MHz Frequency Band oa 1025MHz Total unications Commission e 2008/411/EC Dec Dec2008/477/EC Dec 2010/267/EU Dec2009/766/EC Decision references Source: Source: FINAL RSPGOpinion onReview Use ofSpectrum 6 February 2012 6 February 400MHz 190 MHz 2x30 MHz 2x35MHz AmountSpectrum of www.gncc.ge Georgian National Comm Georgian Share ofmobileoperators by active voice subscribers 23% SILKNET (CDMA850) MOBITEL (GSM) GEOCELL (GSM/UMTS) MAGTICOM (GSM/UMTS) 41% Dec. 2012 1% Mobile Market (Georgia) Mobile Market (Georgia) unications Commission 37% Share ofmobileoperators by active GEOCELL (3G/HSPA) MAGTICOM (3G/HSPA) 45% broadband subscribers Dec. 2012 55% www.gncc.ge Georgian National Comm Georgian EU Harmonized Mobile BandsandGeorgian Allocations unications Commission Spectrum holding by operators in 850/900 /1800 MHz and 2.1 GHz bands

180

160 7.38 10 140

120 60 5 100 30

60 59.8 59.8 40 www.gncc.ge

20 20 26.4 23.6 0 10.98 7.38 Magti Geocell Mobitel silk-net

900MHz 1800MHz 2100MHz (Paired) 2100 Mhz (unpaired) 850MHz (CDMA)

Georgian National Communications Commission Current spectrum allocations in 900 and 850 MHz Bands

Duplex Gap

790MHz 791MHz 796MHz 801MHz 806MHz 811MHz 816MHz 821MHz 11 MHz 832MHz 837MHz 842MHz 847MHz 852MHz 857MHz 862MHz 880MHz

5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 18 MHz

Downlink Uplink Uplink 850 MHz EU 800 MHz EU 800 MHz band band band 3,69MHz 3,69MHz 3,69MHz 872.955- 876.645 827.955- 831.645 838.365- 842.055 Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Downlink Guard band 1MHz Guard Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired 850 MHz band

www.gncc.ge EU 900 MHz 880MHz 885MHz 890MHz 895MHz 900MHz 905MHz 910MHz 915MHz band 925MHz 930MHz 935MHz 940MHz 945MHz 950MHz 955MHz 960MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz

MAGTICOM GEOCELL Duplex Gap GEOCELL MAGTICOM

10 MHZ 10 MHZ 10 MHz Free 10 MHZ 10 MHZ 1,8 MHz 3,2 MHz 3,03 MHz 3,69MHz 2,46 MHz 1,8 MHz 3,2 MHz 2,46 MHz 3,03 MHz

Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 7 Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Uplink Downlink

MAGTICOM -GSM 2X13.2MHz GEOCELL - GSM 2X11.8MHz MOBITEL - GSM 2X5.49MHz SILK-NET CDMA 850 CDMA 850 2X3,69MHz 2X3,69MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz

www.gncc.ge Up-link down-link MOBITEL MHz MHz total MAGTICOM GEOCELL company 1710MHz ATCM S-2X29.9MHz GSM- MAGTICOM - 29.9

GEOCELL 1720MHz MHZ

1730MHz Current spectrumallocations in1800 MHz Band

1740MHz

1740.4-1741.2 1835.4-1836.2 2X 0.8 MHz 10 X 2 MHz FREE 10X2MHz MHz 2 29.9X 3.9 29.9 X 2MHz 2X4.2MHz MHz 2X 15 MHz 2X5 2X0.8MHz 14.9 MHz 2X 2X15 MHz 2X14.9 MHz 1875.6-1879.8 1870.2-1875.2 1855-1870 1835.4-1836.2 1840.1-1855 1820.1-1835 1780.6-1784.8 1805-1820 1775.2-1780.2 1740.4-1741.2 1760-1775 1760 1745.1- 1725.1-1740 1710-1725 MAGTICOM 29.9 MHZ 1750MHz

1760MHz

1770MHz MOBITEL(5 X 2 GEOCELL - GSM -2X29.9 MHz GSM -2X29.9 GEOCELL- MHz 4.2 X2 1780MHz

MHz)9.2 MHzDuplex Gap 20 MHz 1790MHz

1800MHz

1810MHz 29.9 MHZ GEOCELL 1820MHz

1830MHz

MOBITEL - GSM- 2X10 MHz 2X10 GSM- MOBITEL - FREE 3.9 1840MHz MAGTICOM 29.9 MHZ 1850MHz 20 MHz 59.8 MHz 59.8 MHz

1860MHz

1870MHz MOBITEL(5 X 2 MHz 4.2 X2 MHz)9.2 MHz 1880MHz www.gncc.ge ECL 9016 1025 X5 H 30MHz MHz 2X15 2140-2155 5MHZ 1950-1965 Up-link Down GEOCELL MAGTICOM Company Unpaired 1900MHz Georgian National Comm Georgian MAGTICOM - UMTS 2X30MHz UMTS MAGTICOM - 10 MHZ

10MHZ

MAGTICOM 1920MHz GTCMHz 5 30MHZ

1940MHz 1920-1935 2110-2125 2X 15 MHz 2X 30 MHz 30MHz 2X MHz 2X15 MHz 2X15 2125-2140 2110-2125 1935-1950 1920-1935 Spectrum allocations in 2.1GHzBand

10 MHz GEOCELL 15MHZ 1960MHz 9.4 MHZ unications Commission 5MHZ 1980MHz 30 MHz Mobile satellite

2000MHz ECL -UT-2X15MHz UMTS- GEOCELL - Unpaired 5MHZ 2020MHz 10 MHz 2100 MHzpaired

2040MHz Technological 85 MHz -link MHz MHz total Paired 5MHz 2060MHz

2080MHz

2100MHz T-2X5MHz GTC- MAGTICOM 30MHZ 2120MHz

2140MHz GEOCELL 15MHZ 60 MHz 2160MHz 15MHz 30 MHZ mobile satellite 2180MHz

2200MHz www.gncc.ge Ensure Not to take into consideration consideration into take to Not Find waysto make Georgian National Comm Georgian Make technolofy neutral neutral Make technolofy Wait formarket development access spectrum holdings Harmonize of licenseholders licensees SPECTRUM RE-FARMING/ MainTrends Liberalize 0/0 MHz spectrum allocations with EU norms 800/900 . GHz spectrum available 2.6 unications Commission (15 years starting from modification date) 900/1800/2100 MHz spectrumbands when assessing competitiveness bands ( and modifytheduration ofexisting GSM/UMTS mobile/wireless services nard21Gz .-. GHz, 850 and450 MHz unpaired 2.1 GHz, 3.4-3.6 on continues spectrumblocks without guardbands n hnalct .-. GHz bandfor and thanallocate 3.6-3.8 players for mobile/wireless broadband ) of Mobile market in 900/1800MHz www.gncc.ge Georgian National Comm Georgian Planned spectrumre-farming option unications Commission www.gncc.ge Paired Block 1 Mz5H 5H Mz Mz5H Mz Mz Mz5H 5H Mz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 880MHz Guard band 1MHz 790MHz Paired Block 1 3,03 MHz 5MHz MAGTICOM -GSM 2X13.2MHz 791MHz

Paired Block 2 3,69MHz 885MHz Paired Block 2 5MHz

CDMA 850 2X3,69MHz 2X3,69MHz CDMA 850 796MHz urn pcrmalctosi 0 n 800 MHz Bands Current spectrumallocations in900 and

2,46 MHz EU 800MHz Paired Block 3 Paired Block 3 890MHz Downlink 5MHz 801MHz band

pikDownlink Uplink 1,8 MHz 3,2 MHz Paired Block 4 Paired Block 4 895MHz 5MHz 806MHz 0MZ10MHZ 10 MHZ GEOCELL Paired Block 5 5MHz Paired Block 5 900MHz 811MHz Paired Block 6 5MHz 816MHz Paired Block 6 MAGTICOM ECL -GSM 2X11.8MHz GEOCELL - 905MHz

Duplex Gap 821MHz 11 MHz Paired Block 7 910MHz

3,69MHz 915MHz

EU 900MHz 827.955- 831.645 850 MHz Uplink Duplex Gap Paired Block 1 5MHz band 10 MHz 832MHz band Paired Block 2 5MHz 837MHz 3,69MHz 838.365- 842.055 Paired Block 1 Paired Block 3 925MHz 5MHz 842MHz OIE -GSM 2X5.49MHz - MOBITEL 3,03 MHz EU 800MHz

Free Paired Block 4 847MHz 5MHz

Paired Block 2 930MHz Uplink band 2,46 MHz

Paired Block 5 852MHz 5MHz

Paired Block 3 935MHz 1,8 MHz

Paired Block 6 857MHz 3,2 MHz 5MHz

Paired Block 4 940MHz 0MZ10MHZ MAGTICOM 10 MHZ GEOCELL 862MHz

Paired Block 5 945MHz SILK-NET CDMA850 18 MHz 2X3,69MHz

Paired Block 6 950MHz 850 MHz band Downlink

Paired Block 7 955MHz 3,69MHz 872.955- 876.645 960MHz 880MHz Spectrum allocations800/900 in MHz 900 andspectrum 800 MHz re-farming Bands after refarming

790MHz 791MHz 796MHz 801MHz 806MHz 811MHz 816MHz 821MHz Duplex Gap 832MHz 837MHz 842MHz 847MHz 852MHz 857MHz 862MHz 880MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 11 MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 18 MHz Downlink Uplink EU 800 MHz EU 800 MHz

band 3,69MHz band 3,69MHz 3,69MHz 3,69 MHz 869.265- 872.955 824.265-827.955 827.955- 831.645 872.955- 876.645 Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Block 1 Block 2 Block 3 Block 4 Block 5 Block 6

Guard band 1MHz Guard Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Paired Part of harmonized spectrum within 800 MHz band (2 x 20 MHz) will be auctioned as soon as spectrum value (and reserve price) for 800 MHz band will be determined (2X10 MHz will be available after expiration of CDMA licenses within 850 MHz band).

EU 900 MHz www.gncc.ge band 880MHz 885MHz 890MHz 895MHz 900MHz 905MHz 910MHz 915MHz 925MHz 930MHz 935MHz 940MHz 945MHz 950MHz 955MHz 960MHz

5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz 5MHz

GEOCELL MAGTICOM Duplex Gap GEOCELL MAGTICOM 10 MHZ 10 MHZ 10 MHz 10 MHZ 10 MHZ 5.49 MHz 3.2 MHz 1,8 MHz 3,2 MHz 5.5 MHz 4.51 MHz 5.49 MHz 5.49 MHz 5.49 MHz 1,8 MHz 4.51 MHz

MAGTICOM -GSM 2X13.2MHz GEOCELL - GSM 2X11.8MHz MOBITEL - GSM 2X5.49MHz SILK-NET CDMA 850 CDMA 850 2X3,69MHz 2X3,69MHz www.gncc.ge 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 10MHz 1710MHz 1710MHz ATCM S-2X29.9MHz GSM- MAGTICOM - 29.9 ATCM S-2X30MHz GSM- MAGTICOM - 1800 MHz spectrum allocations after re-farming 30 GEOCELL 1720MHz GEOCELL 1720MHz MHZ MHZ Current spectrumallocations in1800 MHz Band

1730MHz 1730MHz

1740MHz 1740MHz FREE 3.9 MAGTICOM MAGTICOM

30 MHZ 1750MHz 29.9 MHZ 1750MHz

1760MHz 1760MHz

1770MHz 1770MHz 2X10 MHz

ECL -GSM -2X30MHz GEOCELL- 1780MHz GSM -2X29.9MHz GEOCELL- 1780MHz 2X5 MHz MOBITEL Duplex Gap Duplex Gap 20 MHz 20 MHz 1790MHz 1790MHz

1800MHz 1800MHz

1810MHz 1810MHz 99MHZ 29.9 GEOCELL 30 MHZ GEOCELL

1820MHz 1820MHz

1830MHz 1830MHz MOBITEL - GSM- 2X10 MHz 2X10 GSM- MOBITEL - MOBITEL - GSM- 2X10 MHz 2X10 GSM- MOBITEL - 1840MHz FREE 3.9 1840MHz MAGTICOM MAGTICOM 30 MHZ 29.9 MHZ 1850MHz 1850MHz

1860MHz 1860MHz

2X10 MHz 1870MHz 1870MHz

2X5 MHz MOBITEL 1880MHz 1880MHz www.gncc.ge ECL 9016 1025 X5 H 30MHz MHz 2X15 2140-2155 5MHZ 1950-1965 Up-link Down GEOCELL MAGTICOM Company Unpaired 1900MHz 10 MHZ MAGTICOM - UMTS 2X30MHz UMTS MAGTICOM - 10MHZ x5Mzo ard20 H adwl eaalbei 07atreprto of expiration after 2017 in available be will band MHz 2100 licensee paired GTC of MHz 2x15 MAGTICOM 1920MHz GTCMHz 5 30MHZ

1940MHz 1920-1935 2110-2125 2X 15 MHz 2X 30 MHz 30MHz 2X MHz 2X15 MHz 2X15 2125-2140 2110-2125 1935-1950 1920-1935 Spectrum allocations in 2.1GHzBand GEOCELL

10 MHz 15MHZ 1960MHz 9.4 MHZ

5MHZ 1980MHz 30 MHz Mobile satellite

2000MHz Unpaired

ECL -UT-2X15MHz UMTS- GEOCELL - 5MHZ 2020MHz 10 MHz 2100 MHzpaired

2040MHz Technological 85 MHz -link MHz MHz total Paired

5MHz 2060MHz

2080MHz

2100MHz MAGTICOM T-2X5MHz GTC- 30MHZ 2120MHz

2140MHz GEOCELL 15MHZ 60 MHz 2160MHz 15MHz 30 MHZ mobile satellite 2180MHz

2200MHz www.gncc.ge 2100 MHZ(paired) x5Mzo ard20 H adwl eaalbei 07atreprto of expiration after 2017 in available be will band MHz 2100 licensee paired GTC determined of be MHz will expi 2x15 band after MHz auctioned 800 available be will be band). for MHz) price) will 20 reserve MHz x (and (2 (2X10 value band spectrum MHz as 800 soon within as spectrum harmonized of Part Georgian National Comm Georgian 1800 MHz 900 MHZ 800 MHz Magticom 04 08 0 2 4 160 140 120 100 80 60 40 20 0 26.4 Spectrum availablere-farmingafter unications Commission 40 59.8 60 Geocell 23.6 20 10.98 Mobitel aino DAlcne ihn80MHz 850 within licenses CDMA of ration 9 30 59.8 Free not avalable 30 20 10 www.gncc.ge 100 120 140 160 180 20 40 60 80 0 Spectrum allocation andspectrumavailable after re-farming ATCMGOELMBTLSLNTSpectrum SILKNET MOBITEL GEOCELL MAGTICOM 900MHz Spectrum availableband areunpairedMHz not consideredin 2100 26.4 59.8 7.38 60 1800MHz 23.6 59.8 30 2100MHz(paired) 10.98 20 850MHz (CDMA) 7.38 800 MHz available afterre- farming Option 1 10 40 9 GSM/UMTS spectrum liberalization/ modification of existing licenses (15 year duration) (During license modification process GSM/UMTS license holders will be able to give up some part of spectrum and they will be reimbursed for the returned spectrum (if any))

Amount paid (GEL) for 10 licensee expiration Operator Band MHz year license (license date renewal fee or auction)

900 26,4 10.07.2016 24 927 753 1800 29,8 16.12.2015 1 026 000 MAGTICOM 1800 30,0 12.05.2019 35 107 508 2100 30,0 02.06.2016 17 104 098 2100 30,0 09.09.2015 17 468 016

Total 146,2 95 633 375 900 3,6 03.08.2019 4 212 901 900 20,0 02.04.2017 20 002 239 GEOCELL 1800 30,0 03.08.2019 35 107 508 1800 29,8 13.08.2023 48 208 735 2100 30,0 09.06.2016 16 012 347 Total 113,4 123 543 730 900 10,98 25.01.2018 27 874 175 MOBITEL 1800 10,0 26.01.2017 17 808 518 1800 10,0 23.07.2023 16 177 428

Total 31,0 61 860 121