5G regulation and law in Montenegro

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

5G service will become available in Montenegro in 2023. 

Namely, on 26 October 2022, the Agency for Electronic Communications and Postal Services of Montenegro (“EKIP”) launched a mobile spectrum auction in the 700 MHz, 3600 MHz and 26 GHz bands. 

The three mobile operators -  Crnogorski Telekom, Mtel i One Crna Gora were awarded with the frequencies. All blocks of paired spectrum (700 MHz and 3.6 GHz bands) were awarded, while the blocks of unpaired spectrum in the 700 MHz and 2.6 GHz bands remained unallocated, due to lack of interest.

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

The implementation of the 5G system has just started, thus there is not sufficient information on the extent to which operators are planning to monetize 5G investments. However, 4G and 5G networks operate in parallel, and the customer has a choice.

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

N/A

4. What is being done to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies?

In December 2022, there was a spectrum auction of the 5G frequencies. The tender documentation includes, among others, specific coverage requirements and 5G network deployment obligations. 

5. What public tenders have awarded spectrum licences? 

In the early stages of the 5G roll-out, in 2016 and 2021, EKIP awarded frequencies in the 900 MHz, 1800 MHz, 2 GHz, and 2,6 GHz bands to boost 5G availability with its existing 4G LTE service. For example, in 2022 Crnogorski Telekom started to provide 5G commercial services in the capital city of Podgorica based on the DSS technology that allows operators to allocate part of the 4G LTE spectrum to 5G.

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

The main criterion was winning the auction with the highest bid. The spectrum was awarded by a system of a competitive auction. The auction process was conducted in two phases: initial bidding phase for generic blocks, where bidders competed for generic blocks, and the allocation phase, a single-round sealed bid auction for a specific location of the blocks in the band. The initial phase was split into auctions for reserved (pre-auction) and unreserved licenses (main auction phase). The pre-auction phase was based on the Simple Clock Auction whereas the main auction phase was conducted in the combined format of a simple "clock" bidding (Simple Clock Auction) and bidding through sealed bids (sealed-bid auction).

5.2 What are the conditions of the spectrum licence? 

The awarded operators are obliged to make available 5G service in every municipality in Montenegro by the end of 2024, to cover at least 50% of the total population of Montenegro by 5G by the end of 2026, and to provide a continuous network signal coverage of all populated places, highways, and main roads by the end of 2030.

5.3 What is the price and how is it calculated?

The bidders need to pay EUR 8,836,146.00. 

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

There is a long-term spectrum allocation plan, and no future tenders have been announced.

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

Besides the award rules for nationwide 5G spectrum published on 26 October 2022 and the rules on sharing of passive infrastructure for deployment of high-speed broadband networks, no 5G-specific rules have been drafted.

8. What focused 5G network or spectrum sharing regulation exists?

N/A

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

N/A

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

No 5G network sharing or spectrum sharing agreements are in place yet.

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

The award rules for nationwide 5G spectrum do not contain network sharing or spectrum sharing provisions. However, according to the Law on sharing physical infrastructure for the purpose of deployment of high-speed communication networks, operators of the high-speed networks (i.e, an electronic communication network which is capable of delivering broadband access services at speeds of at least 30 Mbps) are obliged to conclude access agreements with service providers unless the access does not seem to be technically suitable in which case the operator may refuse the access.

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

Montenegrin government has made no specific comments on 5G cyber-security and the potential use of Chinese technology. There are no legislative restrictions on the possible use of Chinese technology.

Portrait ofTamara Samardžija
Tamara Samardžija
Senior Lawyer
Podgorica
Portrait ofSrđan Janković
Srđan Janković
Counsel
Belgrade