The Communication Regulation Commission (CRC) decided to close a 5G auction and grant each of the country’s three major telecoms operators a licence in the 3.6 GHz spectrum without competition after reviewing their applications for the process.

However, Bulgaria’s leading telecoms firm Vivacom, controlled by United Group, has started legal proceedings over the way the licences were assigned, and the process could take months or years and delay the development of the country’s 5G networks.

Even if the regulator issues the licences as assigned at present, they cannot be enforced before the court rules on Vivacom’s complaint, but one way out could be a new auction provided all three telecoms firms agree, Dimitrov said.

Vivacom said in a statement the best way to allocate 5G frequencies is through an auction, especially when there is a competitive interest for a specific band of the spectrum.  Of course that approach would favour the company with the deepest pockets and is a way to knock out rivals

A1, part of Austria’s A1 Group controlled by Mexico’s America Movil, and Telenor Bulgaria, owned by Czech investment group PPF, said it was satisfied with the frequencies’ bands allocated to them.

A1 was surprised by Vivacom’s appeal which could have grave consequences for 5G development and economic recovery in Bulgaria, it said.

The CRC initially planned to auction three 20-year licences each for 100 MHz with an initial price of 4 million levs ($2.44 million), but reviewed its decision on March 10 after examining the applications.