Lack of demand has the regulator asking telcos what it should do with the unwanted 5G spectrum
Poland’s regulator the Office of Electronic Communications (UKE) has issued industry communication to explain why the country’s 26GHz band – slated for use in 5G networks – has not yet seen an auction or distribution, essentially saying there was low market interest in this band and 42GHz.
UKE first consulted on 26GHz way back in July 2020 as part of the National Broadband Plan and the 26 GHz band was meant to be distributed by 31 December 2022. To be fair even that slippage was not the worst given the 3.6GHz bands were meant to be distributed by 30 July 2020. In response to the 26GHz consultation most telcos recommended that the band should be allocated no earlier than in 2022-2023.
Acccording to CMS Law, most recently, in response to a parliamentary question (4 January 2023), the Secretary of State for Digitalisation indicated that “Regarding this band (26GHz), there is currently no demand from entities operating in Poland, and full use of these frequencies is envisaged after 2023.” UKE has now confirmed the lack of demand.
No doubt the Poles watched South Korea closely after the government cancelled SK Telecom’s 28GHz licence, citing a lack of investment. The telco had been given the right to use the 28GHz band in 2018 and was required to install a total of 15,000 units of network equipment by May last year – it managed under 2000 and told the government it had no plans for more. The move followed the government cancelling all local operator 28GHz licences in January 2023. SKT was given the six month challenge but didn’t make the mid-year deadline. The South Korean government said it is currently seeking new operators for the 28 GHz band.
Last October UKE successfully concluded its auction of 5G-capable 3.5GHz licences following an intensive process spanning two days and 16 rounds of competitive bidding. The auction covered four licences, each granting access to a 100MHz of spectrum falling within 3.4GHz to 3.8GHz. Deutsche Telekom’s Polish NatCo paid PLN 497m (€112m) for ‘Block D’, offering spectrum in the 3.7GHz–3.8GHz frequency range. Network-sharing partner Orange Poland paid PLN 487m for Block C in the 3.6GHz–3.7GHz range. Polkomtel’s Plus, won Block A (3.4GHz–3.5GHz) and Iliad-owned P4 (Play) won Block B (3.5GHz–3.6GHz).
Kicking the can down the road
The 24.25-27.5 GHz frequency band was rated as one of the “pioneering frequency bands” for 5G by the EU Commission Implementing Decision No. 2019/784 of 14 May 2019 on the harmonisation of this band for terrestrial systems. In its 2020 consultation, UKE found “significant limitations in the availability of the required systems and equipment for the commercial launch of services, and therefore the impossibility of ensuring the principle of competitiveness.”
Now UKE is once more asking the industry to suggest a new deadline for commercial services in 26GHz – in the light of the current availability of systems and equipment – plus what services and where do the operators want to deploy. The regulator also asks whether the entire part of the band available to “civilian users”, i.e. the 24.3-27.3GHz range, be allocated at once.
UKE has also asked the operators their intentions for 42GHz currently allocated to fixed service point-to-multipoint (PMP). “he World Radiocommunication Conference WRC-19 has identified the 40.5–43.5GHz frequency band on a global scale for IMT family systems. In March 2020, CEPT decided to develop a new ECC Decision on the harmonization of the 40.5-43.5GHz frequency band for terrestrial systems enabling the provision of wireless broadband communications services.
The regulator wrapped up the communique be asking the operators whether it needs to start work on making other frequency bands available for IMT-2020 purposes, and if so, which ones? Operators have until 16 February to respond to UKE.