Little smoke, a lot of substance. This is the relevant issue with regard to the ongoing auction on the sale of frequencies around 700 Mhz, extremely valuable resources in view of the development of technologies related to 5G where telephone operators – Tim, Vodafone, Wind Tre, Fastweb and newcomer Iliad – are strongly interested. Little is said about it but it interests a lot and many. There are several million Euros at stake and from this sale, the State has put an expected revenue of around 2,5 billion into the budget law and many more could arrive instead.
While waiting to know the punctual outcome of the last round, the so-called "competitive improvements", the figure reached is very respectable: over 4,5 billion euros and, according to what one of our authoritative interlocutor who has been following for near the dossier, "this figure could rise ... we can go on to the bitter end, we do not know the strategies of the operators". Who are well aware that it is an in / out game and nobody, it seems, wants to stay out of the competition. The entire future of the IOT, of connected cities, of next generation services to companies and people is closely linked to the possession of transmission frequencies.
Yesterday, at 19 pm, the eighth auction ended. We report an excerpt from the MISE press release: “Today, the total amount of offers reached 4.740.642.258,00 euros. Even on the eighth day, the competition focused on the 3700 MHz band, with offers exceeding one billion for each of the 80 MHz-wide lots. The total amount of the 3700 MHz band is currently equal to 2.537.040.000,00 euros , by itself ensuring the minimum income established in the Budget Law”.
While waiting for the final results, important questions are being asked: when will these resources be used given that, as expected, the proceeds from the sale will only be available once the frequencies have been effectively released (expected in 2022)? The temptation could be to enter the amounts available in the next stability law to be diluted and spread over the various ordinary accounting needs. It won't be easy because the needs are many and the coffers of the state are notoriously always on the hunt for new revenue.
Another topic under discussion is how, on which sides, with what objectives to use this treasure. Logica would like it to be devoted to the development, support of businesses and initiatives all oriented towards new technologies, identifying specific objectives and themes on which to focus. The experience of the past, unfortunately, does not give hope for the best. The previous tender for the assignment of 4G frequencies allowed the State coffers to forfeit over 1,5 billion euros which were initially destined to support for the development of broadband and instead, subsequently, were reversed in favor of other needs of ordinary accounting.
In the background of the economic part there is also the central theme of the technical methods through which the delivery of the frequencies available to the assignees of the auctions will take place. A first meeting is scheduled for today at the MISE (together with AgCom, TV operators and local institutions) the first meeting - the so-called "TV 4.0" chaired by the Minister of Economic Development and Labor Luigi Di Maio - to define the areas, phases, timing of the release of the 700 band which may not be painless for all interested parties, including citizens who in some cases will be forced to buy new television reception equipment.
Rai itself, according to what is learned from a confidential dossier circulating in Viale Mazzini, could run the risk of losing a few million viewers if it does not intervene first with an investment estimated at around 200 million, which is not clear from which side get out (for the same operation it seems that Mediaset could spend much less) . Local televisions are on a war footing: both those adhering to Confindustria Radio Tv and those adhering to Aeranti Corallo are asking for guarantees because, as its president Marco Rossignoli has declared: "The contraction of the advertising market, the delays in state support, the technological changes that are taking place and the new ways of doing radio and television business risk determining a downsizing of the sector”.
The date indicated in the auction specification for the physical delivery of the frequencies is 30 June 2022. On closer inspection, it's not very far away.
