Spectrum Harmonisation and the Regime of Harmonised Bands
The use of radio-frequency spectrum in Georgia is regulated by the Law on Electronic Communications, whose Article 47-2 defines the procedure for the harmonisation of spectrum: for the purpose of its effective management and use, the Commission ensures the harmonisation at national level of the bands harmonised for the services and terrestrial systems provided for by the decisions of the European Commission, through amendments to the National Frequency Allocation Plan and the modification of licences for the use of scarce resource.
In harmonised bands licences are issued under the principle of technological and service neutrality, for a term of 15 years. To promote the introduction of new technologies, an existing licence is subject to modification: the designation of the resource is modified so that it may be used in a neutral manner; the validity of the licence is set at 15 years from the modification decision; and the fee is recalculated by the Commission’s rules — from the new fee is deducted a part directly proportional to the amount already paid. The licensee may request modification for only a part of the resource and cede the remainder, or refuse modification altogether — the licence is then deemed revoked at its own initiative and the fee paid is not returned. The payment schedule must not require more than 50 per cent of the fee to be paid within 1 year.
The Change and Ceding of Radio Frequencies
Article 47-3 balances changes in the plan with the interests of users. When the plan is amended, the Commission may replace a frequency assigned to an authorised person by decision — in that case the authorised person has no right to claim compensation. A resource granted under a licence may be replaced within the same band by another resource of the same quantity, if the licensee can continue its activity without changing the deployed technology; where costs arise, the licensee may apply to the Commission with a substantiated demand for their coverage, and the Commission may rely on the conclusion of an audit company.
For an operator these norms create a map of counter-risks in spectrum management: an amendment of the plan may affect its resource, so expected changes of the plan must be taken into account when choosing a band and planning investments. A licence under harmonisation is modified within 3 months of the amendment of the plan.
The Spectrum Licence and Its Term
Under Article 49, a licence for the use of radio-frequency spectrum is issued by the Commission through auction or tender, and a licence is issued for a term of 10 years. The licensee is obliged to use the scarce resource in conformity with the legislation and the conditions of the licence and to ensure its optimal and effective use, including through the introduction of innovative technologies.
The extension mechanism is precisely regulated: the holder may apply to the Commission for extension 1 month before expiry, and where the use has been in conformity, the term is extended by 10 years. On extension the payable amount is built on auction prices: the arithmetic mean of the prices recorded at auctions held during the last 2 years; where more than 2 auctions were not held in that period — the mean of the last 3 years; where only 1 auction was held — its price; where none was held — the starting price of the auction to be held; plus the licence fee. For a licence issued through tender, the Commission sets the price on the basis of international practice and the conclusion of an authoritative organisation.