Lowering licence fees is an important step in unlocking 5G’s industrial potential and enabling private networks to flourish
Norway frees up spectrum for local 5G applications: The Norwegian Communications Authority (Nkom) recently outlined its decision on regulating access to the 3.8-4.2GHz spectrum range, opening up these frequencies to private standalone 5G networks. Since 2019, Nkom has been exploring options for industry and verticals to get access to 5G in non-public networks (NPNs) within a given area. Pilots undertaken in 2022 have helped it to develop new regulation, which will now release 3.8-4.2GHz spectrum to local NPNs – and is intended to supplement the offerings of national mobile operators. From 1 January 2023, parties have been able to apply for up to 80MHz of bandwidth, which can be used in low or medium power, or unsynchronised networks, with annual fees calculated on a per licence area or a per base station basis. Spectrum licences are available for up to 10 years.
France cuts spectrum costs for private network use: On 4 January 2023, France’s Ministry of Economics and Finance announced a reduction in the annual licence fees paid by industries using 2.6GHz (TDD) spectrum in 4G/5G private networks. The reduction, which came into force the following day, was a key recommendation of a 2022 review into the state of the industrial 5G market in the country. With cost found to be a major obstacle to the rollout of private networks, the Government expects that lowering licence fees will help make local deployments ‘economically viable’ and encourage manufacturers to take advantage of this innovation to, in particular, improve productivity and optimise energy consumption. The decision could lower spectrum costs for verticals by a factor of more than 100, in particular for localised networks of up to 300m2.
5G is seen as critical to ‘Industry 4.0’ and economic recovery: Nkom’s regulation of 3.8-4.2GHz spectrum is based on Ofcom’s Shared Access License regime in the UK, and aims to help Norwegian industry explore the role of 5G in solving their mobile communications needs. Frameworks established in both Norway and the UK could therefore be useful reference points for CEPT’s Electronic Communications Committee as it considers how to harmonise spectrum for private networks across Europe. France is also eager to facilitate private networks, considering 5G a central element of ‘Industry 4.0’ – and its broader COVID-19 recovery strategy. However, while Arcep has issued experimental licences in 2.6GHz, 3.8-4.0GHz and 26GHz bands, private 5G deployments are yet to take off in earnest (unlike in Germany). Coupled with the extension of a 3.8-4.0GHz trial platform for 5G use cases, slashing spectrum fees could be key to unlocking the technology’s industrial potential and enabling private networks to flourish.
