Javier Torre de Silva, Partner and Global Co-Head of Communications, TMC, with law firm CMS, based in Madrid, explains to Annie Turner.
CMS and others carried out an analysis of 5G deployments in 40 countries, including the US, South Korea, Japan, Russia, China, France, Italy and Spain in spring. Torre de Silva says, “We concluded the diversity is really amazing”.
“5G seems to be a homogeneous reality around the globe, but it is not. It depends in a very dramatic sense on the specific conditions that are set in the public tenders for the spectrum [the price and conditions] and the local regulations regarding towers and other details that are sometimes forgotten by the public.”
He cites Spain as having dealt “very reasonably” with spectrum allocation, with the regulator offering tenders with conditions that allowed the spectrum to be used for 4G or 5G for 20 years, without time or coverage obligations.
In Italy the 5G spectrum auction raised more than €6 billion from the operators, but there were tough conditions attached and Torre de Silva does not feel they are realistic, noting, “For instance, 5G coverage of 80% of the population [is] to be reached in 36 months. According to the GSMA, the average coverage of 5G in Europe in 2025 is going to be in the region of 31%.”
Long-term damage
He adds, “Our concern is that these obligations are going to rule the 5G deployment for the next 20 years, which is the typical duration of the concessions. If we are not able to predict how the 5G market is going to be in six months, imagine predicting or regulating it for 20 years: it’s going to be impossible. A lot of regulations that are being created now will prove to be inefficient, absurd or contrary to the public interest in 20 years or even in ten years’ time. PULL QUOTE
“Each euro that is requested for the spectrum tenders is withdrawn from investment in the networks and that [money] is badly needed as the telcos in Europe are very indebted. They have to balance their short-term [goals] of raising taxes or raising money for the tender and the long-term interests of the industry in developing a competitive 5G network.”
It is not too late for a change of approach by some governments and regulators, though, because as Torre de Silva points out, 80% of the spectrum for 5G has yet to be allocated.