Extending licensing periods and reducing auction prices would encourage investments in improved network coverage. This is the conclusion of a new study on spectrum assignments in the EU. The study was published on 23 October and confirms the European Commission’s approach in its proposal for a new telecommunications code.
The study was carried out by LS telcom, PolicyTracker and VVA at the request of the European Commission and examines the approaches used by the member states to authorise and assign spectrum frequency, in an attempt to work out what methods would be the most appropriate in the context of future 5G services. The study illustrates that although both regulators and mobile operators would generally prefer to continue the authorisation framework for delivering licences on an exclusive and individual basis, a greater variety of spectrum assignment approaches would benefit the introduction of 5G services. This kind of approach would help facilitate emerging vertical markets made possible by 5G, whilst underpinning the objectives of a single digital market.
A range of recommendations
The consultants conclude their work with ten recommendations to encourage 5G development in Europe. They thus urge member state authorities to identify and allocate sufficient spectrum to be made available on a non-exclusive/non-individual basis. The Commission should investigate what constitutes “sufficient and suitable 5G spectrum” whilst ensuring consideration of all mobile bands. This spectrum should be harmonised throughout the EU and assigned and authorised in a consistent way in each member state. The consultants also call for the timing of authorisation of new bands to be done in a harmonised way across the EU, and they urge regulators to adopt investment friendly features, such as low reserve prices, well-designed coverage objectives and relatively long licence lengths. Regulators should also demonstrate the necessary flexibility to include all reasonable elements in their assignment criteria, so as to respond to individual market needs. In addition, the study calls on the member states to ensure that harmonised 5G spectrum is “available to those wishing to implement new or innovative services”.
These recommendations go in the direction of the legislative proposal presented by the Commission in September 2016 to modernise telecommunications rules (see EUROPE 11624). The aim of the proposal is to ensure that by 2025 there is access to very high broadband for companies, access to speeds of at least 100 Mbit /second for European households, and uninterrupted 5G cover in all urban areas and main highways. Negotiations between the European institutions are expected to begin shortly, given that the parliamentary committee responsible decided on its position on 2 October (see EUROPE 11875) and the Council on 11 October (see EUROPE 11881). Extending licensing periods (25 years) had provoked sharp divisions between the two institutions, with the Council refusing to put a stop to the matter.
The study is available at the following address: https://ec.europa.eu/digital-single-market/en/news/wide-range-spectrum-authorisation-approaches-will-help-achieve-full-benefits-future-5g-use. (Original version in French by Sophie Petitjean)