The regulator has set out conditions of use of the 3.4–3.8GHz band, including the rollout obligations to be met between 2020 and 2025.
Background: During 2019, the French regulator Arcep has been working on the auction of the 3.4–3.8GHz spectrum band. In July 2019, it opened a consultation on the draft rules for the allocation of this spectrum, with a view to award the frequencies by Autumn 2019.
Rollout obligations are now set: Arcep has confirmed the main tenets of its initial proposal, while also making several adjustments. The specifications include a first allocation phase that enables a maximum of four candidates to obtain a block of spectrum in exchange for a set of optional commitments. This was initially set at 60MHz, but has now reduced to 50MHz as requested by the Government. Each operator must launch 5G services in at least two cities before the end of 2020; they will then have to cover 3k sites by 2022, 8k sites by 2024, and 10.5k sites by 2025. Arcep is also planning to introduce a “concomitance mechanism” to ensure non-urban areas will also benefit from these rollouts. 25% of the 3.4–3.8GHz band sites in the last two stages must be located in sparsely populated areas, targeting economic activity, notably manufacturing, excluding major metropolitan areas. Minimum speed targets are also set, with 75% of cell sites to support at least 240Mbps by 2022. By 2030, this will apply to all sites.
The auction could be delayed: It is now up to the Government to set the financial conditions for the call for applications, particularly the reserve price(s), then to launch the frequency allocation procedure. Arcep still maintains the deadline of Autumn 2019 in its roadmap for the award; for this to happen, the Government will need to make a quick decision on the financial conditions.
