5G regulation and law in North Macedonia

1. What is the state of 5G deployment in your country?

The Agency for Electronic Communications (“Agency”) allocated the first bands of frequencies for 5G networks (700MHz and 3.6GHz bands) in 2022. 

The first 5G network started commercial operations in 2022.

The Ministry of Informatic Society and Administration announced 5G deployment in April 2019 with the National Operative Broadband Plan 2019-2029 (“NOBP”). 

The NOBP has set out the following timetable: 

  1. By the end of 2023 - a 5G signal must be available in at least one city.
  2. By the end of 2025 - a 5G signal must be available in the main transport corridors (basic road network).
  3. By the end of 2027 - a 5G signal must be available in all cities. 
  4. By the end of 2029:
    1. 5G should be available to everyone at a speed of at least 100 Mbps, 
    2. at least 50% of household speeds must be at least 100 Mbps, 
    3. all households must have access to a speed of at least 100 Mbps (with the potential for affordable upgrades), and 
    4. all public institutions must have symmetrical access to a speed of at least 1 Gb/s.

2. Are telecoms companies monetising 5G investments - or are the services provided to consumers at similar prices to 4G?

The two operators offering 5G (Makedonski Telekom and A1 Makedonija) now offer 1) some (“premium”) tariffs at the same prices as 4G; and 2) specific 5G service tariffs.

3. Has 5G been launched for industrial purposes? For which sectors?

The first 5G network started commercial operation in 2022. We are not aware of any 5G for industrial purposes.

4. What is being done to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies? Are such frequencies accessible to stadiums, airports and other special premises?

In April 2022, the Agency announced its intention to implement a (new, second) public tender process with public bidding. 

The subject of this public tender was i) 2x30 MHz in the 694-790 MHz band (i.e., 700 MHz), ii) 328.5 MHz in the 3400-3800 MHz band (i.e., 3.x GHz) and iii) 800 MHz in the 24.25-27.5 GHz band (i.e., 26 GHz). 

The Agency planned to grant three licences for the 700 MHz band, seven licences in the 3.x GHz band, and four licences in the 26 GHz band. 
These are 15-year licences, that can be extended for another five years.

(See Question 5)

5. What public tenders have awarded spectrum licences?

 

5.1 What were the criteria for awarding each of the tenders?

The licences will go to the highest bidder in each category.

5.2 What are the conditions of the spectrum licence?

The main conditions under which the radio frequencies will be used are:

  1. Location and coverage area (some approvals will be for national coverage, and some for regional coverage).
  2. Roll-out dates (operators that will receive approval should meet the planned dates for rolling out according to the NOBP).
  3. Synchronisation obligations (as specified in the public tender).
  4. Quality parameters of public electronic communication services.
  5. Start with use (the assigned radio frequencies should go into use no more than one year from the date the licence goes into effect). 
  6. Technology and service neutrality (the licence will be neutral in terms of technology and services).
  7. Prior consent for transfer (the right to use the assigned radio frequencies can be transferred only with prior consent of the Agency).
  8. Payment of fees (the licence holder must pay an annual fee for the frequencies, etc).

5.3 What is the price and how is it calculated?

The Agency set minimum one-time fees for the use of the radio frequencies with national coverage:

frequency rangefee (EUR/MHz)awarded rangeone-time fee (EUR)
700 MHz A1, A2, A3262,5002x10 MHz5,250,000
3 x GHz B1, B2, B329,000100 MHz2,900,000
26 GHz C1, C2, C3, C41,000200 MHz

200,000

 

The Agency assessed the fees according to previous 3G and 4G processes, and a comparative analysis with other European countries, considering their populations relative purchasing power.

In June 2022, the Agency decided minimum fees: 

  1. for the 713-723/768-778 MHz and for the 723-733/778-788 MHz – EUR 5.25m.; and 
  2. for the 3.6-3.7 GHz range and for the 3.7-3.8 GHz range – EUR 2.9m.

In November 201, ahead of the public tender procedure scheduled to begin in April 2022, the Agency decided a minimum for the one-time licence fee and method of payment for radio frequencies from the 700 MHz and 3.x GHz bands. The minimum fee for the “A1” approval (“reserved” for a new, third operator) was set at EUR 2.75m., while the minimum for the “B1” approval (also “reserved” for a new, third operator) was EUR 1.25m. The Agency announced the following starting prices:

  1. “A1”: 703-713/758-768 MHz (2x10 MHz) – EUR 2.75m.
  2. “A2”: 713-723/768-778 MHz (2x10 MHz) – EUR 5.5m.
  3. “A3”: 723-733/778-788 MHz (2x10 MHz) – EUR 5.5m.
  4. “B1”: 3.5-3.6 GHz (1x100 MHz) - EUR 1.25m
  5. “B2”: 3.6-3.7 GHz (1x100 MHz) - EUR 2.5m.
  6. “B3”: 3.7-3.8. GHz (1x100 MHz) - EUR 2.5m.

In December 2021, the Commission for the Protection of Competition initiated a process to assess the potential for state aid, after it determined that the reduced fee for the “A1” and “B1” approvals were in effect state aid. Later that month, the Agency stopped the process.

Operators must submit quarterly reports to the Agency with data on the technical type of the network, speed, and geographical location: 

  1. Whether they can provide broadband access to services with a speed of at least 30 Mbps.
  2. NGA (New Generation Access), which can provide broadband access to services with a speed equal to or greater than 30 Mbps and less than 100 Mbps. 
  3. Whether they can provide broadband access to services of at least 100 Mbps.

The operators must submit the first data until 28 June 2023.

6. Is there a long-term spectrum plan or announcements for future tenders?

Yes. The Agency adopted a plan to award and use 5G frequencies in April 2021.

7. If 5G specific rules are drafted, what do they say?

Beside the documents mentioned in this guide, we cannot identify other publicly available rules that would be relevant.

8. Are there any issues in the implementation of the 5G projects? Have there been any decisions regarding non-compliance with 5G concessions’ obligations?

There were some general public concerns regarding the health and environmental aspects of the 5G network.

Other than this, we are not aware of any other issues with 5G implementation.

9. What focused 5G network or spectrum sharing regulation exists? What are the latest developments in the thinking of the regulators about 5G shared infrastructure ownership or use?

We are not aware of any 5G network or spectrum sharing regulation or developments.

10. Are 5G network sharing or spectrum sharing agreements in place?

Note that the right to use the assigned radio frequencies can be transferred only with prior consent of the Agency. 

We are not aware of publicly available 5G network sharing or spectrum sharing agreements in place.

11. What are or will be the rules for granting competitors access to new 5G networks once they are deployed?

The regulatory policy on frequencies should always ensure efficient and sustainable competition, with more than two public mobile network operators.

(Please see Questions 4-6)

12. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

North Macedonia and the US signed the “Clean Network” Memorandum of Understanding on 23 October 2020.
Additionally, in July 2018, North Macedonia adopted the National Strategy for Cyber Security 2018-2022. In November 2022, a new National Strategy for Cyber Security 2023-2026 was proposed. 

The latest amendment on the Law on Electronic Communications in 2021 brought new cyber-security rules. These rules include: 

  1. Assessment of the risk profile of suppliers and manufacturers of network operators.
  2. New obligations for the operators to manage potential risks regarding suppliers and manufacturers, adoption of relevant plans and how services are used.
  3. Safe management, operation, and monitoring of electronic communication networks among operators (i.e., establishment of centres for network operators and/or centres for secure operations to ensure secure network management and functioning).

The government also adopted a methodology to assess the risk profile of suppliers and manufacturers of network equipment, and a list of critical components and sensitive parts of electronic communication networks (including for 5G network).

Portrait ofAleksandar Josimovski
Aleksandar Josimovski
Senior Lawyer
Skopje
Zlatko Kujundjiski