AGCOM Backs Initial Renewal of 5G Licences, Defers Auction

Italy's communications authority, AGCOM, signalled on December 9 that it supports renewing current 5G spectrum licences instead of staging a fresh auction, according to people familiar with the matter. The preliminary position marks a potential shift away from the costly competitive bidding process that governments often use to allocate wireless spectrum and has prompted intense interest from the country’s major mobile operators.

Telecom companies lobbied strongly for licence renewals to avoid the large immediate expenditures and business uncertainty associated with an auction. For operators, the option of rolling over existing spectrum rights would free capital that might otherwise have been spent winning licences at auction, allowing firms to prioritize network upgrades, densification and software driven improvements. For the state, however, forgoing an auction could mean a reduction in one time revenue that public treasuries sometimes rely upon.

AGCOM said it would hold a further public consultation next year to determine the technical and economic conditions that would apply to any licence extension. Those consultations are expected to address issues such as the duration of renewed licences, renewal fees, coverage obligations and technical conditions that ensure efficient use of the spectrum. The regulator’s subsequent decisions will shape whether operators receive long term certainty or face shorter term extensions with stricter conditions.

The preliminary backing arrives amid a broader debate over how best to balance the need for rapid 5G deployment with principles of competition and fiscal prudence. Auctions provide a transparent method to allocate scarce radio resources and can open opportunities for new entrants to access spectrum. By contrast, licence renewals can preserve incumbent operators’ positions and accelerate investment by removing the bidding risk that can delay deployment plans.

Industry reaction is likely to be mixed. Network operators typically welcomed the prospect of renewal in public industry filings and private discussions earlier this year, arguing that lower upfront costs would accelerate rollout of enhanced 5G capabilities, including standalone 5G networks and enterprise services. Consumer groups and some policy makers may press AGCOM to attach conditions to any extension that guarantee service improvements, wider geographic coverage and competitive access for smaller providers.

The regulator’s next consultation will be watched closely by Brussels, investors and the operators themselves. Any final decision by AGCOM could alter the timing and scale of network investments across Italy and shape market dynamics in a sector that is central to the country’s digital economy. As AGCOM moves from preliminary backing to formal rule making, the terms it sets will determine whether the renewal route delivers faster upgrades for consumers or preserves an incumbent advantage at the expense of broader competition and public revenue.