The 5G Broadband Networks Project Adopted by the National Assembly on the Second Reading

The National Assembly of the Republic of Armenia adopted the RA draft law on amendments to the law "On the State Budget of the Republic of Armenia for 2024" on its second reading. A total of 64 MPs voted in favor of the bill, 8 opposed it, and 21 abstained.

The Minister stated that, as part of the implementation and development of mobile broadband 5G technology in Armenia, including the allocation of radio frequency resources necessary to ensure high-speed data transmission and low network interruptions characteristic of full 5G technology, the RA Minister of High-Tech Industry declared the liberalization of the 3600-3800 MHz radio frequency range on August 6, 2024. The range was subsequently handed over to the RA Public Services Regulatory Commission.

"The specified frequency range is the most attractive option as recommended by the World Telecommunication Union for the deployment of 5G technologies in mobile broadband networks," explained Mkhitar Hayrapetyan.

It was also highlighted that in January 2023, through another ministerial order, the lower 2300-2400 MHz radio frequency range was liberalized. This frequency is also intended for implementing and developing a mobile broadband 5G technology network.

"Considering these measures, discussions on the competitive provision of the 2300-2400 MHz and 3600-3800 MHz radio frequency spectrums, as well as the mandatory fees for developing and deploying 5G mobile communication technology nationwide, it is necessary to define fees for the allocation and usage of radio frequencies in line with the RA state budget for 2024," the Minister noted.

"Essentially, we have established specific fees for the allocation and use of radio frequencies required for organizing mobile 5G broadband communication in Armenia and for ensuring satellite Internet connectivity. For mobile 5G broadband, the one-time mandatory payment for 1 MHz of frequency is set at AMD 25,000,000, with an annual usage fee of AMD 16,800,000. For satellite Internet, the one-time payment is AMD 3,000,000, with an annual usage fee of AMD 3,000,000․ The Public Services Regulatory Commission is expected to announce a tender before the end of the current year. If winners are determined, and considering the continuous dynamic development of the telecommunications sector alongside international trends in broadband networks and 5G technology, the provision of the 300 MHz frequency segment is anticipated to generate significant revenue for the state budget. Specifically, the expected revenues include at least AMD 7.5 billion as a one-time payment and AMD 5.04 billion annually,” concluded Mkhitar Hayrapetyan.