Harmonisation of the 3800-4200 MHz band | GSMA Europe Position Paper
The GSMA wishes to raise concerns about the risk that restrictive technical conditions may cause to the premise of service neutrality as well as the risk that such approaches may breach Article 45 of the European Electronic Communications Code (EECC).
Across the EU, Member States are taking different approaches to spectrum demand from industry verticals for the deployment of private networks. Different bands are considered (2300 MHz, 3400-3800 MHz, 3800-4200 MHz), varied authorisation processes applied (direct licensing by the Administration or reliance on the secondary market) and there are a variety of ways in which a reservation is made for a particular service or use (in some cases the licences are service neutral, in other cases only private networks or specific verticals are allowed). The divergent approach is partly due to a lack of coordination on this issue, and partly caused by different national circumstances in terms of demand, existing use or trust in the secondary market.
It is important to note that such variety of approach is not an insurmountable obstacle to service provision. Private networks for vertical users benefit to a large extent from economies of scale of the 4G and 5G ecosystems, and do not need to operate within the same band to reach critical mass. In the same vein, the fact that there are different authorisation mechanisms in different countries does not necessitate EU level harmonisation of licensing terms and procedures.
However, the GSMA has concerns regarding departures from the principle of service neutrality. We believe that there is a risk that some Member States could use harmonisation at EU level to promote a particular solution and impose unnecessary constraints on other countries rather than applying the minimal technical conditions required to ensure co-existence.
Artificially constraining the possible uses of a spectrum licence goes against the market-based principles of service neutrality. Irrespective of its geographic scope, granting a spectrum usage right on the condition that it is used for a private network, or for a particular vertical application, is in our view a clear breach of article 45 of the EECC, as we do not see how it can be justified by the need to fulfil a general interest objective (the only exception foreseen).
The 3800-4200 MHz band is an important expansion band for 5G. Harmonisation at EU-level should specifically focus on applying the least restrictive technical conditions that ensure coexistence with incumbent spectrum users. It should be made available for all possible 5G technologies (or, more generally, wireless broadband technologies) within those limits. Very low power thresholds would have a particular service implication and push the band towards certain services. Such limits risk being entirely unnecessary from a sharing and co-existence perspective and will impede service neutrality. Less restrictive sharing mechanisms that do not require strict power limits and provide more flexibility can be applied.
There is evidence supporting the fact that artificially low power limits in licensed bands can significantly reduce the value of the spectrum. For example, in the US, the price per MHz of high-power licences in the 3700-3980 MHz band was four and a half times higher than the price of mid/low power licences in the 3550-3650 MHz band (CBRS). In general, higher power limits will also increase the value of the spectrum for verticals and local users, and therefore the benefit of low power limits is questionable also from this perspective.
Technical regulation that stifles efficient use of spectrum and removes service neutrality will lower the value of spectrum for European consumers. While small differences in licensing approaches for vertical networks between countries do not harm service provision, imposing technical restrictions that enforce the licensing of specific services will cause reductions in the value of the spectrum and should be avoided.
For more information please contact:
Emma O’Toole
Director, Spectrum, GSMA
As Senior Manager for Spectrum, Emma leads on GSMA Europe’s efforts to represent the mobile industry on European spectrum policy, helping to develop and deliver an advocacy agenda that ensures mobile operators have timely and affordable access to appropriate spectrum.
An Economist by training, Emma has experience in academic research as well as a corporate and regulated company environment and is specialised in telecommunications regulation, market and policy analysis.
Emma has extensive experience working on a broad range of telecoms regulatory and public policy issues having previously worked as the in-house Regulatory Economist and EU-level representative for the former Irish incumbent, Eir.
Prior to joining GSMA in 2021, Emma also worked as a Senior Analyst with Cullen International, monitoring and reporting on EU and national telecoms and spectrum policy developments.
Emma holds a MSc in Economics and Policy in addition to a Bachelor of Commerce (International) from the National University of Ireland Galway.