Albania Launches 5G Frequency Competition: A New Era in Mobile Connectivity

Albania's Electronic and Postal Communications Authority (AKEP) opens competition for 5G technology frequencies, setting the stage for a major upgrade in mobile connectivity across the nation.

Introduction

In a significant move toward enhancing Albania’s digital infrastructure, the Electronic and Postal Communications Authority (AKEP) has officially opened the competition for 5G frequency allocations. This marks the beginning of a new chapter in Albania’s telecommunications landscape, as the country prepares to embrace the next generation of mobile connectivity. With substantial investments at stake and ambitious coverage goals, this auction is set to shape the future of communication services in Albania.

Opening the Gateway to 5G Technology

AKEP's decision to initiate the competition for 5G frequencies underscores the government's commitment to advancing Albania’s digital economy. The process involves the allocation of frequencies within the 3400-3800 MHz band, a critical spectrum for the deployment of 5G services. A total of five usage rights will be granted—two with a spectrum amount of 80 MHz and three with 40 MHz.

The competition is designed with a stringent financial requirement, setting a minimum bid of 3.624 million euros for the 80 MHz blocks and 1.812 million euros for the 40 MHz blocks. If successful, the auction could bring in a minimum of 12.7 million euros to the state budget, reflecting the high value placed on this strategic resource.

Comparative Costs: Albania vs. Neighbouring Countries

The pricing strategy adopted by AKEP has raised eyebrows, particularly when compared to neighboring countries. For instance, Kosovo allocated a larger 100 MHz spectrum for just 2 million euros, while North Macedonia offered the same amount for 3 million euros. The higher cost in Albania is partly attributed to the larger population, although recent census data showing a population contraction to 2.4 million has sparked debate.

Despite the higher prices, AKEP’s auction is expected to draw significant interest, particularly from existing mobile network operators (MNOs) eager to expand their 5G capabilities. However, the high entry costs may deter new players from entering the market, limiting competition and innovation.

Setting the Stage for Nationwide 5G Coverage

AKEP has laid out ambitious targets for 5G coverage as part of the competition terms. Successful bidders will be required to ensure that 55% of Albania's population is covered by 5G services by 2027, with this figure rising to 85% by 2030. Additionally, key infrastructure hubs—including the ports of Durrës, Vlorë, and Sarandë, as well as airports in Tirana, Kukës, and Vlora—must have 5G coverage by the end of 2025.

These targets are aimed at ensuring that Albania remains competitive in the digital economy, providing the necessary infrastructure for businesses and consumers alike. However, the scale of investment required to meet these goals raises questions about the feasibility of achieving them within the stipulated timelines.

The Promise and Reality of 5G Technology

5G technology promises to revolutionize mobile connectivity, offering data speeds up to ten times faster than 4G networks. However, real-world performance often falls short of these theoretical maximums. According to speed measurements by companies like Ookla, the average download speed on 5G networks in 2022 was around 168 Mbps, with some European operators achieving speeds of up to 600 Mbps.

While these speeds are significantly higher than current 4G networks, the difference in everyday internet use for most consumers may be less noticeable. Nonetheless, the greater capacity and reliability of 5G networks are expected to unlock new possibilities, particularly for business applications and the Internet of Things (IoT).

Conclusion: A Step Forward for Albania’s Digital Future

As Albania embarks on this journey to deploy 5G technology, the outcome of AKEP’s competition will be closely watched. The allocation of 5G frequencies marks a critical step in modernizing the nation’s telecommunications infrastructure, with far-reaching implications for the economy and society. While challenges remain, particularly in achieving widespread coverage and affordability, the potential benefits of 5G technology are undeniable. For Albania, this auction represents not just a business opportunity, but a chance to leap forward into the digital future.