The next 5G auction will give the country a new operator, although its consumers are unlikely to see any benefits in the short term
A fourth MNO is on the cards: Belgium will have a fourth mobile operator as a result of the next 5G auction, which is scheduled for June 2022. The regulator BIPT will award spectrum across the 700MHz, 900MHz, 1,400MHz, 1,800MHz, 2.1GHz, and 3.6GHz bands. On 29 March, the BIPT announced that one of the two newcomers that were admitted to the auction has exercised the right to obtain the spectrum reserved for a new entrant. This is made up of 2x30MHz across the 700MHz, 900MHz, 1,800MHz, and 2.1GHz bands, and will cost €83.3m. Existing operators have also been guaranteed some spectrum, since they exercised the right to reserve 2x30MHz each across the 900MHz, 1800MHz, and 2.1GHz band for €73m each. The BIPT gave existing MNOs this right in order to ensure continuity of service since their 2G and 3G licences were due to expire.
MNOs will finally have some certainty over their spectrum licences: 5G is already commercially available in Belgium, although the upcoming auction will ensure operators obtain spectrum of key importance for extensive and efficient deployment, such as in the 700MHz and the 3.6GHz bands. In 2020, the BIPT had to award 3.6GHz spectrum on a temporary basis while federal and regional governments found an agreement on how to share the auction proceeds. Operators will now be able to obtain licences that last until 2040 and can be renewed for a further five years, thereby having some certainty on their future use.
Despite a new entrant, the market might not immediately become more competitive: It remains to be seen whether the auction will increase competition in the mobile market – something the country could certainly benefit from with consumers getting lower data allowances compared to their European neighbours. The operator that secured the spectrum for the new entrant is likely to be Citymesh, which currently holds spectrum in the 2.6GHz and 3.5GHz band and previously showed interest in bidding. Citymesh made clear that it will initially retain a B2B focus, and only gradually expand its offering. While the BIPT has also admitted a fifth contender to the auction, it is unlikely this operator has reserved any spectrum and so will have to compete with its more established rivals to obtain any of the airwaves available.
