Communiqué de presse - Overseas area

Frequencies – French Overseas Territories

Frequency assignments in the 700 MHz, 900 MHz and 3.5 GHz bands in Martinique and in Guadeloupe: Arcep invites interested parties to submit a tender package


The call for applications for the award of frequencies in the 700 MHz, 900 MHz and 3.4 – 3.8 GHz bands in Martinique and in Guadeloupe, along with the Orders launching the awards procedure, were published in the Journal officiel on 8 May 2024. The deadline for submitting applications to Arcep is 23 July 2024 at 12 noon Paris time.

Any requests for additional information on the procedure must be sent to Arcep by 25 June 2024 at the latest.

700 MHz, 900 MHz and 3.5 GHz band frequencies for regional digital development and superfast mobile services

Two frequency bands are currently available in Martinique and in Guadeloupe: 30 MHz (paired) in the 700 MHz band and 380 MHz in the 3.5 GHz band. The process for awarding new frequency bands to deploy public mobile networks in France’s overseas territories is designed to satisfy consumers’ and business users’ ever-increasing demand for access to high quality and reliable superfast mobile services.

Starting on 1 May 2025, a 35 MHz duplex pair will also become available in the 900 MHz band, as the previous frequency licences awarded by Arcep to use this band are set to expire on 30 April 2025.

The awards procedure and conditions align with the guidelines set by the Government. These guidelines relate to regional digital development and ensuring fair and effective competition in Martinique and in Guadeloupe. In particular, the procedure and conditions for awarding spectrum include a series of provisions whose goal is to improve mobile coverage in priority locations in both territories, which were established in concert with the Government and with local authorities.

Method used to exchange documents with Arcep as part of this procedure

To simplify the administrative procedures, candidates can submit their tender package and their bid forms via electronic channels. To this end, physical or legal persons planning on submitting a tender package are invited to make themselves known to Arcep as soon as possible and, in any event, by 12 June 2024 at the latest, stipulating whether they want all documents sent for the purposes of this procedure to be delivered by electronic means or by hard copy, so that Arcep can provide them with information on the e-tender process.

As stipulated in the provisional timetable provided below, Arcep plans for the procedures to be completed by the end of Q4 2024, after which it will award the licences to use frequencies to the winning candidates.

Associated documents

Summary provisional timetable

See Part II.1.2 of the call for applications for a detailed provisional timetable, broken down by frequency band and by territory

Procedure and conditions for assigning frequencies in the 700 MHz, 900 MHz and 3.4 – 3.8 GHz bands in Martinique and in Guadeloupe

To be able to satisfy the ever-growing needs of local authorities and of consumer and business users wanting to access high quality and reliable superfast mobile services, Arcep has assigned and continues to assign new frequency bands for the deployment of public mobile networks.

In addition, in the territories of Guadeloupe and Martinique, previous licences to use frequencies in the 900 MHz band that Arcep awarded are set to expire on 30 April 2025.

1. Goals set for assignments in Martinique and in Guadeloupe

In a letter addressed to Arcep dated 20 October 2023, the Government informed the regulator of the goals that must underpin the specifications for the assignment of frequencies in the 700 MHz, 900 MHz and 3.4 – 3.8 GHz bands in in the abovementioned territories:

  • Regional development: Guarantee of a minimum level of coverage for mobile telecommunications services by operators in each of the territories in questions; increased mobile coverage on-board vehicles on motorways and main link roads;
  • Competition: safeguarding and stimulating competition in the Martinique and Guadeloupe markets, by preventing an imbalance in low-band[1] frequency portfolios between the different mobile operators, and by provide all stakeholders an opportunity to optimise their frequency portfolio to improve mobile network quality of service.

2. Assignment procedure

2.1 In the 3.4 – 3.8 GHz band in Martinique and in Guadeloupe

The assignment procedure is for 380 MHz of spectrum in the 3.4 – 3.8 GHz band, across each of the two territories. This purpose of this procedure is to determine the winning candidates, the amount of spectrum assigned to each, and their exact position in the band. All of the winning candidates will be subject to a set of obligations.

Arcep is proposing a mixed allocation mechanism that is not based solely on financial bids, as with the one used to assign the 3.4 – 3.8 GHz band frequencies in Metropolitan France in 2020 and in Saint-Martin and Saint-Barthélemy in 2023. The procedure will include a first part during which up to four operators will be able to obtain additional blocks of spectrum in exchange for optional commitments, before the auctions carried out in the second part allow them to obtain additional frequencies.

2.1.1 First part: Optional commitments in exchange for blocks of frequencies

Arcep is giving applicants the option of making three commitments when submitting their tender package.

Designed to improve connectivity for users and give local authorities more clarity on network rollouts, these commitments include:

  • Supplying a dedicated fixed access product on their mobile network;
  • Activating Voice and SMS over Wi-Fi services, to improve indoor coverage;
  • Increased transparency from operators on service outages.

If these commitments are made, they will be written into the obligations attached the frequency licences that are awarded to the winning candidates, and come to supplement the minimum obligations that will apply to all of the successful applicants (described in 2.1.5).

If four or fewer candidates agree to make these three commitments when submitting their tender package, each will be able to obtain a 50 MHz block frequencies in the 3.4 – 3.8 GHz band.If their number is equal to or over five, the applicants will bid on the four blocks in a separate auction.

2.1.2 Second Part: Auction enabling each operator to acquire additional frequencies

An auction is then held to assign the frequencies that are still available after the first round of commitment-based spectrum awards. The qualified applicants, regardless of whether they obtain a block in the previous phase, will thus have the possibility of acquiring additional frequencies, by 10 MHz block.

This will be a single-round second-price combinatorial auction. The candidates indicate the amount they commit to pay for each number of possible blocks, within the authorised amount of spectrum described in part 2.1.4.

Arcep will then determines the value of each of the valid award combinations. For instance, if two blocks are available for assignment and there are two candidates, A and B, that both want up to two blocks, the valid combinations are as follows:

  • One block for A and one block for B;
  • Two blocks for A and no block for B;
  • No block for A and two blocks for B.

The value of a combination is the sum of the amounts bid by the candidates for the number of blocks they obtain under this combination.

The combination with the highest value is the winning combination.

Lastly, Arcep will determine the amount due from each candidate. This is the minimum amount that the candidate must have bid for the chosen winning combination.

2.1.3 Third part: Positioning auction

Once the amount of spectrum assigned to each winning candidate is known, there are multiple potential frequency position combinations. A new (single-round, second highest bid) auction will be held to determine each of the winning candidates’ positions. They will thus have an opportunity to express their frequency position preferences.

2.1.4 Capping the amount of spectrum available to each candidate

Arcep plans on setting a cap on the total amount of spectrum any one applicant can obtain in the 3.4 – 3.8 GHz band (during both phases of the procedure), which is compatible with Government’s objective of fostering a competitive marketplace:

  • a maximum of 40 MHz in the 3.4 – 3.8 GHz band;
  • a maximum of 100 MHz in the 3.4 – 3.8 GHz band.

2.1.5 Planned obligations for the winning candidates of 3.4 – 3.8 GHz band frequencies

The assignment procedures stipulate that every candidate that is assigned frequencies in the 3.4 – 3.8 GHz band, regardless of whether they have chosen to make optional commitments, will be subject to a set of mainly coverage-centric obligations:

  • Une obligation to make effective use of the 3.4 – 3.8 GHz band (by 50% of the cell sites in the operator’s network, and at a minimum 25 sites within five years);
  • An obligation for the mobile network to be IPv6-compatible, to accelerate the transition to this protocol.
2.2 In the 700 MHz and 900 MHz bands in Martinique and in Guadeloupe

Arcep is proposing an assignment mechanism based on a separation of blocks available for assignment in two parts: one part of the blocks will be assigned in frequency packages that include 700 MHz and 900 MHz band spectrum. The four remaining blocks (723 – 733 MHz and 880 – 890 MHz band frequencies and their respective 778 – 788 MHz and 925 – 935 MHz band pairs) will be assigned by block of 2 x 5 MHz.

In Martinique:

  • The four 5 MHz blocks of paired frequencies 703 – 723 MHz and their 758 – 778 MHz pair and six 5 MHz blocks of 885 – 915 MHz band frequencies and their 930 – 960 MHz band pairs will be assigned as frequency packages;
  • the three remaining blocks (723 – 733 MHz s and 880 – 885 MHz band frequencies and their respective 778 – 788 MHz and 925 – 930 MHz band pairs) will be assigned by block of 2 x 5 MHz.

In Guadeloupe:

  • The four 5 MHz blocks of paired frequencies 703 – 723 MHz and their 758 – 778 MHz pair and five 5 MHz blocks of 890 – 915 MHz band frequencies and their 935 – 960 MHz band pairs will be assigned as frequency packages;

the four remaining blocks (723 – 733 MHz s and 880 – 890 MHz band frequencies and their respective 778 – 788 MHz and 925 – 935 MHz band pairs) will be assigned by block of 2 x 5 MHz.

2.2.1 First stage: Assignment of some of the 700 MHz and 900 MHz band frequencies in packages

A first principal auction is held to assign frequency packages.

In Martinique, if there are four or more qualified candidates, each winning candidate will be assigned one of the four following frequency packages, in frequency division duplexing (FDD) mode, under the conditions detailed hereafter:

Package name

Number of packages available with this composition

Package contents

700 MHz band

900 MHz band

Package 1

2

5 MHz duplex in the 703 – 723 MHz and 758 – 778 MHz sub-bands

5 MHz duplex in the 885 – 915 MHz and 930 – 960 MHz sub-bands

Package 2

2

5 MHz duplex in the 703 – 723 MHz and 758 – 778 MHz sub-bands

10 MHz duplex in the 885 – 915 MHz and 930 – 960 MHz sub-bands

Déplacez le curseur pour consulter le contenu du tableau

Table 1 – Content of the packages in Martinique if there are four or more qualified candidates

In the case where the number of qualified candidates is strictly less than four, each winning candidate will be assigned one of the three following packages, in frequency division duplexing (FDD) mode, under the conditions detailed hereafter:

Package name

Number of packages available with this composition

Package contents

700 MHz band

900 MHz band

Package 1

2

5 MHz duplex in the sub-bands
703 – 723 MHz and 758 – 778 MHz

10 MHz duplex in the sub-bands 885 – 915 MHz and 930 – 960 MHz

Package 2

1

10 MHz duplex in the sub-bands
703 – 723 MHz and 758 – 778 MHz

10 MHz duplex in the sub-bands 885 – 915 MHz and 930 – 960 MHz

Déplacez le curseur pour consulter le contenu du tableau

Table 2 – Content of the packages in Martinique if there are strictly fewer than four qualified candidates

In Guadeloupe, if there are four or more qualified candidates, each winning candidate will be assigned one of the four following frequency packages, in frequency division duplexing (FDD) mode, under the conditions detailed hereafter:

Package name

Number of packages available with this composition

Package contents

700 MHz band

900 MHz band

Package 1

3

5 MHz duplex in the sub-bands
703 – 723 MHz and 758 – 778 MHz

5 MHz duplex in the sub-bands
890 – 915 MHz and 935 – 960 MHz

Package 2

1

5 MHz duplex in the sub-bands
703 – 723 MHz and 758 – 778 MHz

10 MHz duplex in the sub-bands 890 – 915 MHz and 935 – 960 MHz

Déplacez le curseur pour consulter le contenu du tableau

Table 3 – Content of the packages in Guadeloupe if there are four or more qualified candidates

In the case where the number of qualified candidates is strictly less than four, each winning candidate will be assigned one of the three following packages, in frequency division duplexing (FDD) mode, under the conditions detailed hereafter:

Package name

Number of packages available with this composition

Package contents

700 MHz band

900 MHz band

Package 1

2

5 MHz duplex in the
703 – 723 MHz and 758 – 778 MHz sub-bands

10 MHz duplex in the
890 – 915 MHz and 935 – 960 MHz sub-bands

Package 2

1

10 MHz duplex in the
703 – 723 MHz and 758 – 778 MHz sub-bands

5 MHz duplex in the 890 – 915 MHz and 935 – 960 MHz sub-bands

Déplacez le curseur pour consulter le contenu du tableau

Table 4 – Content of the packages in Guadeloupe if there are strictly fewer than four qualified candidates

Arcep then determines the value of each of the valid award combinations. For instance, if three candidates, A and B and C, are participating in this stage of the auction for the territory of Guadeloupe:

  • One package 1 for A and B and package 2 for C;
  • One package 1 for A and C and package 2 for B;
  • Package 1 for B and C and package 2 for A.

The value of a combination is the sum of the amounts bid by the candidates for the package they obtain under this combination.

The combination with the highest value is the winning combination.

Lastly, Arcep determines the amount due from each candidate. This is the minimum amount that the candidate must have bid for the chosen winning combination.

2.2.2 Second stage: Positioning auction for 700 MHz and 900 MHz band frequencies obtained as a result of the principal auction for packages

Once the winning candidates of the frequency packages described in Part 2.2.1 are known, there are multiple potential position combinations for the frequencies obtained in the 700 MHz and 900 MHz bands. A new (single-round, second highest bid) auction is held to determine each of the winning candidates’ positions for the blocks they obtained at the outcome of the principal auction for the packages. They will thus have an opportunity to express their frequency position preferences in the 703 – 723 MHz and 885 – 915 MHz sub-bands (and their respective 758 – 778 MHz and 930 – 960 MHz sub-band pairs) in Martinique, and in the 703 – 723 MHz and 890 – 915 MHz sub-bands (and their 758 – 778 MHz and 935 – 960 MHz sub-band pairs) in Guadeloupe.

2.2.3 Third stage: Assignment of a portion of the 700 MHz and 900 MHz band frequencies by 5 MHz blocks

An auction will be held to assign the 5 MHz blocks in the 700 MHz and 900 MHz bands not contained in the frequency packages described in Part 2.2.1. These blocks are pre-positioned in the 700 MHz and 900 MHz bands. They are:

  • In Martinique, 723 – 733 MHz and 880 – 885 MHz frequencies and their respective 778 – 788 MHz and 925 – 930 MHz pairs.
  • In Guadeloupe, 723 – 733 MHz and 880 – 890 MHz frequencies and their respective 778 – 788 MHz and 925 – 935 MHz pairs.

This auction will take place after the principal auction for the assignment of 700 MHz and 900 MHz band spectrum contained in the packages.

This will be a single-round second-price combinatorial auction. The candidates indicate the amount they commit to pay for each possible block and combination of blocks, within the authorised quantities of spectrum described in Part 2.2.4.

Arcep then determines the value of each of the valid award combinations. For instance, if two blocks are available (Block 1 and Block 2) for assignment, and there are two candidates, A and B, that want to obtain up to two blocks, then the valid combinations are as follows:

  • Block 1 for A and Block 2 for B;
  • Block 2 for A and Block 1 for B;
  • Block 1 and Block 2 for A and no Block for B;
  • No Block for A and Block 1 and Block 2 for B.

The value of a combination is the sum of the amounts bid by the candidates for the block or combination of blocks they obtain under this combination.

The combination with the highest value is the winning combination.

Lastly, Arcep determines the amount due from each candidate. This is the minimum amount that the candidate must have bid for the chosen winning combination.

2.2.4 Capping the amount of spectrum available to each candidate

Arcep plans on setting a cap on the total amount of spectrum any one applicant can obtain in the 700 MHz and 900 MHz bands, which is compatible with Government’s objective of fostering a competitive marketplace:

  • a planned maximum of 2 x 15 MHz in the 700 MHz band;
  • a planned maximum of 2 x 12.5 MHz in the 900 MHz band;
  • a planned maximum of 2 x 30 MHz (paired) from the combined amount of spectrum available in the 700 MHz, 800 MHz and 900 MHz bands.

In the case where the quantity obtained by the candidate in the 700 MHz band results in them exceeding the cap of 2 x 30 MHz (paired), between the date when they are awarded a licence to use frequencies in the 700 MHz band and 1 May 2025, the candidate will be only authorised to use the quantity of 700 MHz band spectrum that keeps their holding within the 2 x 30 MHz cap, between the date when they are awarded a licence to use frequencies in the 700 MHz band and 1 May 2025. Permission to use the remaining amount of spectrum obtained through this procedure to assign 700 MHz band frequencies will come into effect on 1 May 2025.

If, because of these caps, the possible combined amount requested by all the qualified candidates does not permit the assignment of all of the packages described in Part 2.2.1 and the blocks described in Part 2.2.3, this draft procedure plans to lift the caps on 900 MHz band and low-band frequencies.

2.2.5 Proposed obligations for the winning candidates assigned frequencies in the 700 MHz or 900 MHz bands

The assignment procedures plan for every candidate that is assigned frequencies in the 700 MHz or 900 MHz band to be subject to the following obligations:

  • An obligation to cover certain pre-identified areas, based on the needs expressed by local authorities. Operators will be fully responsible for providing coverage in most of these areas. As an adjunct, coverage of certain areas subject to specific restrictions will be contingent on the availability of infrastructures and the granting of official government authorisations;
  • An obligation to provide mobile coverage on-board vehicles on motorways and main link roads;
  • An obligation to deploy a certain number of cell sites using 700 MHz and 900 MHz band frequencies within five years;
  • An obligation for the mobile network to be IPv6-compatible, to accelerate the transition to this protocol.
2.3 Licence duration and rendezvous clause

The initial duration for each of the licences to use the 700 MHz and 3.4 – 3.8 GHz bands is 15 years from its entry into force, except, when applicable, for the remaining amount of 700 MHz band spectrum that will only become available on 1 May 2025, as set forth in Part 2.2.4.

The initial duration for each of the licences to use the 900 MHz and, when applicable, the remaining amount of 700 MHz band spectrum that will only become available on 1 May 2025, is aligned with the initial licensing period for 700 MHz band spectrum.

 3.4 – 3.8 GHz bands is 15 years from its entry into force, except, when applicable, for the remaining amount of 700 MHz band spectrum that will only become available on 1 May 2025, as set forth in Part 2.2.4.

In addition, an interim reviewis set to occur by 2030 to verify operators’ implementation of their obligations, and take stock of market requirements, notably in the areas of mobile network coverage and quality of service. Obligations could be revised based on the findings of these reviews, after having reached an agreement with the licence-holder.

 


[1] Low-band frequencies are frequencies in the 700 MHz, 800 MHz and 900 MHz bands.