The Government has reserved spectrum for a new entrant in the upcoming 5G auction, but the arrival of a new nationwide operator seems unlikely
The 5G auction can start after significant delay: Last week, the Belgian Minister of Telecommunications announced that Belgium will finally run its 5G spectrum auction. For two years, the auction faced significant obstacles due to disagreements between the federal government and regional governments on how to share the auction proceeds. The Consultative Committee of the Government approved the draft decrees that set the conditions for the auction, after which the regulator BIPT will have six months to carry it out. Frequencies across six bands will be awarded, both in existing 2G and 3G bands (900MHz, 1,800MHz, 2.1GHz) and in new bands for 5G (700MHz, 1,400MHz, 3.6GHz).
The Government wants a fourth MNO, but credible candidates are still lacking: One of the key aspects of the award is the reservation of frequencies for a fourth mobile operator. The Government has been looking at the case for a fourth MNO for some time, but evidence of the positive impact of a new entrant has not been forthcoming and it is not clear whether any players are lining up to enter the Belgian market. The Government believes that mobile prices in the country are high, but the draft decrees approved by the Consultative Committee reduce the spectrum reservation for the new entrant compared to the initial proposal from 35MHz to 30MHz, and leave the door open for a more ‘modular’ approach where a less ambitious operator (e.g. one that aims to serve the B2B market) could acquire only part of the reserved spectrum. Citymesh (which currently holds spectrum in the 2.6GHz and 3.5GHz band), has shown interest in bidding – but also said it will retain its B2B focus and only gradually expand. We are therefore unlikely to see a new entrant shaking up the Belgian market with a price war like those we saw in France and Italy when Iliad entered those markets.
