The German regulator BNetzA is the latest in a line of European regulators preparing a 5G spectrum auction. Similar planning is taking place in France and in the UK. The European Radio Spectrum Policy Group has also set ambitious deadlines, with the view to see the first commercial launches by 2020. However, for 5G networks to become operational by such a tight deadline, progress needs to be made not only on the front of spectrum awards, but also on the finalisation of 5G standards and on building comprehensive 5G strategies to identify products and services 5G will support and enable.
BNetzA hopes to award spectrum during 2018, though uncertainties still loom
The German regulator BNetzA is currently consulting (until 28 February) on its draft 5G spectrum plan. The draft proposes the allocation of 2x60MHz in the 2GHz band, and of 300MHz (unpaired) in the 3.6GHz band, to be awarded as part of the same auction. The plan is to complete the auction during 2018, and to ensure 5G networks are commercially available by 2020. BNetzA openly aims to be a European pioneer in 5G spectrum awards.
In the consultation document, BNetzA advocates a licenced approach for these spectrum bands, arguing that it is the best possible approach to guarantee quality and reliability of service, as it minimises the risk of interferences. However, it is likely that the details of how the award will play out could still change significantly; this is due to the current uncertainties in Germany’s political landscape, and to operators’ warning that the award should be designed in a way as to leave operators sufficient funds to invest in network deployment, rather than drawing them into a competitive process which resulted into high spectrum prices.
Regulators need to press ahead with spectrum awards if 5G is to be launched by 2020
The clock is ticking for European regulators to allocate the additional spectrum for 5G deployment. If the deadlines envisaged by the European Radio Spectrum Policy Group (RSPG) in November 2016 are to be released, 2018 has to be the year when regulators move on from announcements to action. The RSPG aimed for “early network introduction” during 2018, with a view to achieve “commercial large scale” not later than the end of 2020. It is worth noting, though, that more recently the RSPG has refined its recommendations in a second opinion, which has less strict deadlines than the previous one. In particular, the recommendation now mentions “large blocks of 3.4-3.8 GHz [to be] made available by 2020”, thereby acknowledging that EU countries are not proceeding at the pace the RSPG hoped to see.
Nonetheless, spectrum awards for 5G risk facing the same delays we have seen with 4G in several countries. In France, ARCEP was aiming to award spectrum in the 3.4-3.8GHz band in September 17, though this is yet to happen at the time of writing. However, the regulator has recently opened a 5G pilot window for all market players, with spectrum in some bands (including the 3.4-3.8GHz one) already available in nine metropolitan areas. In the UK, Ofcom has spent the best part of 2017 preparing the ground for a spectrum auction. The award was partially subject to legal challenge, but any concerns of a delay have fallen away now the Court of Appeal rejected appeals against Ofcom’s plans. While the Court’s decision was awaited, the regulator decided to go ahead in publishing the auction rules and closed the receipt of applications at the end of January 2018.
The ITU should complete the definition of 5G standards, and governments need to set out comprehensive strategies
Despite the recognised importance of early spectrum awards and, in turn, of prompt network deployment, delays are not only related to the obstacles in the harmonisation effort. They are also inherent to the nascent nature of 5G, whose standards are only now starting to be recognised and accepted. Only in November 2017 did the ITU define the first standards related to technical performance for “IMT-2020” (i.e. 5G) radio interfaces. However, these recommendations are only the beginning, and more work needs to be done to set 5G standards in stone. Delays in identifying standards may end up, in turn, pushing back network deployment. Regulators need to take care of that aspect promptly if they are serious about facilitating the swift development of 5G networks.
Government strategies are equally important, as they can play a key role not only in the necessary development of infrastructure, but also in promoting use cases for 5G, and technologies 5G can support. To this end, some governments have started to build a comprehensive view of 5G, in which spectrum awards are only part of a bigger picture.
Currently, the French government is running a consultation, welcoming the view of all potential stakeholders; this is the first step toward the definition of a roadmap in which uses and technologies related to 5G will be identified. The UK government started a similar exercise earlier. It adopted a first 5G strategy in March 2017, focusing on the economic cases for investment, and complemented the strategy in December 2017 through a more detailed vision of spectrum awards and infrastructure development.
