Tuesday May 21, 2024

Spectrum Solutions for Private and Local Networks

Spectrum Solutions for Private and Local Networks

The digitalisation of industry is a priority for every country but approaches to providing connectivity for private and local networks have varied. Industrial and local connectivity is a new policy area, but best-practice is starting to develop on how to use the valuable public resource of spectrum to benefit business and consumers simultaneously.

The regulatory practice of setting aside spectrum for private networks does not benefit digitalisation. Private networks are growing equally in countries without spectrum set-asides, where more spectrum can be used for consumer or other connectivity requirements, as they are in countries which have put set-aside or sharing regimes in place and limited other users. The GSMA’s resources on spectrum solutions for industry focus on ensuring all needs are met equally.

Private and local network today take a variety of forms, delivered by regulation which varies from light-touch to interventionist. They are provided by mobile network operators, either through network slicing on public network equipment, through dedicated equipment on national spectrum licences or a hybrid of these systems. Bespoke private network solution providers may lease spectrum from mobile operators for their own network installations. At the other end of the scale, spectrum set-asides have been made by regulators for use on local and private networks, some of which exclude mobile operators from using the spectrum.

Set-asides are an interventionist regulatory tool and their impact needs to be carefully understood. Making spectrum available solely for industry users has to be balanced against demand from other users. Lighter-touch regulatory solutions exist and are flourishing which is why set-asides have no impact on digitalisation.

Looking at existing practice shows that regulatory approaches to making spectrum available for private networks and industry do not require such intervention. Market-driven approaches that foster cooperative solutions can bring the best outcome for spectrum users and consumers alike.

The Impact of Spectrum Set-Asides on Private and Public Networks

More resources:

Q&A with the report authors

Report takeaways

The Impact of Spectrum Set-Asides on 5G

This report analyses the potential approaches available to regulators for spectrum set-asides. Through five country case studies it also demonstrates the wider impact of these approaches, especially on mobile markets.

Main findings on set-asides

Importantly, the report analysis shows that caution has to be taken when making long-term decisions on spectrum assignments and highlights that market-driven approaches that foster cooperative solutions can bring the best outcome for spectrum users and consumers alike. Regulators and governments need to consider that:

Set-asides carry significant risks to the economy
Spectrum sharing frameworks are complex and carry risks on certainty of tenure and access
Well-designed licence conditions for mobile are least intrusive and stimulate cooperation
Interest is mainly driven by properties of the spectrum band rather than the licensing mechanism