5G and mmWave spectrum
In this paper, we consider regulatory approaches to the assignment of mmWave spectrum. The abundance of mmWave spectrum means that demand may not exceed supply and so an auction format may not be the appropriate approach. Regulators need to be flexible over their choice of award mechanism and less prescriptive or demanding in their choice of licence conditions.
The allocation of mmWave spectrum has presented challenges for regulators across various markets. Unlike traditional scarcity, the abundance of this spectrum questions the efficacy of auctions as the primary assignment approach. Coleago’s analysis scrutinises these challenges, assesses prevailing approaches, and recommends a more adaptable regulatory stance.
The paper underscores the need for regulatory flexibility in assigning mmWave spectrum. Straying from rigid, prescribed licence conditions, regulators should embrace a more permissive approach. This flexibility is crucial in fostering market innovation and creativity.
Regulators face a parallel uncertainty akin to the industry’s ambiguity regarding the 5G business case. The absence of spectrum scarcity has rendered auctions less straightforward as the default choice for allocation. Thus, a flexible approach becomes imperative to leverage market dynamics effectively.
Moreover, facilitating spectrum trading emerges as a pivotal factor in ensuring optimal spectrum utilisation. Allowing trading incentivises efficient spectrum use, aligning with the overarching goal of maximising its value.
In conclusion, regulatory strategies for mmWave spectrum allocation necessitate a paradigm shift. Flexibility and adaptability must replace rigid frameworks, empowering market dynamics to drive innovation. While avoiding excessive prescription, enabling spectrum trading remains a crucial tool in fostering efficient spectrum utilisation. Regulators must evolve to harness the potential of mmWave spectrum effectively.
Other insights
The Polish 700 and 800 MHz Spectrum Auction: Insights and Global Lessons
Poland’s final low-band spectrum auction marks a pivotal moment in Europe’s 5G rollout, offering key lessons in auction design, cross-border coordination, and strategic spectrum management.
The Case for Strategic Spectrum Renewal
As spectrum licences approach their expiry date, a strategic approach to spectrum renewal is crucial. Traditional presumption of renewal in favour of incumbents may no longer serve the industry’s needs. Instead, a more strategic approach to renewal can optimise spectrum assignments and improve spectral efficiency by up to 40%.
Best Practice Spectrum Management
The principles of best practice spectrum management are well established and their implementation can enhance the socio-economic value of spectrum and how much operators are prepared to pay to acquire new spectrum. Whilst most regulators in developed markets have adopted best practice, the same cannot be said for developing markets. Coleago recently studied the regulatory environments in 16 African markets and recorded the extent to which best practice had been adopted.
Learning From Best Practice Spectrum Management in Botswana
The Botswana Communications Regulatory Authority conducted a review of its spectrum management strategy to align with international best practice. The Authority was advised by Coleago and in this paper, Project Director Graham Friend highlights the lessons to be learned for other regulators in developing markets.
The End of Telecoms History? – Not Quite!
At the European 5G conference, Stefan Zehle highlighted that differences in mobile data usage across countries result from variations in price and network availability. While European policymakers celebrate 89% 5G coverage, gaps in both outdoor and indoor connectivity limit usage. William Webb’s prediction that data traffic will plateau at 20 GB per user per month by 2027 seems unlikely, given that top users already exceed 100 GB. To fully realise 5G’s potential, policymakers must address these coverage issues in a cost-effective manner.
Insights from a Strategic Spectrum Review
The mobile industry has accumulated a fragmented spectrum portfolio, consisting of various frequency bands that are sub-optimally allocated for modern technologies like 4G and 5G. As operators transition from legacy technologies such as 2G and 3G to newer, bandwidth-intensive solutions, the need for contiguous spectrum blocks has become critical.
