5G: Arcep wants to avoid the mistakes of the past

5G: Arcep wants to avoid the mistakes of the past. The telecom policeman has unveiled the ambitious first version of its specifications for the allocation of 5G frequencies. For telecom operators, deployment constraints are numerous.

5G: Arcep wants to avoid the mistakes of the past

Arcep has delivered its verdict. After long months of consultation with the executive and operators, the regulator published, Monday, July 15, its specificationsto frame 5G auctions. The document was eagerly awaited by professionals in the sector: its fifty or so pages set out the rules they will have to follow in order to spread out and begin the deployment of very high speed networks. Unsurprisingly, they are strict: Arcep wants France to be "5G operational" as soon as possible. By 2020, it hopes for a first deployment in the main cities of the country and the coverage of the majority of the population by 2025. In return for the small delay, the price of frequencies should be revised downward. Operators have until September to comment on the report before it is endorsed by the government. 

An unprecedented procedure 

For Orange, SFR, Free and Bouygues Telecom to divide the spectrum of 310 megahertz (usable from 2020 and for at least 15 years), Arcep has opted for a two-step procedure. First, the first identical blocks of frequencies (40 to 60 megahertz) will be sold at a fixed and reasonable price. A good way to avoid oversized bidding where, with great strokes of billions, one or two ISPs take all the money. By doing so, the telecom policeman also hopes not to reproduce the error committed when assigning 4G frequencies. After investing heavily, the operators had the greatest difficulty in injecting sufficient funds to meet the deployment deadlines set ... In our German and Italian neighbors, the 5G auctions not sufficiently framed had turned to vinegar with more than 6 billion euros spent. This is much more than the operators can normally afford.   

It is only once these first blocks are distributed that the bidding can really begin. The most greedy ISPs will be able to get additional blocks of 10 megahertz, without ever being able to hold more than a total of 100 megahertz. The modalities of the process are far from innocuous: the quality of the proposed flow depends largely on the frequency with which operators have. The more one of them acquires blocks, the more attractive it is to consumers who want to take advantage of 5G.

Towards a strict and reasoned deployment

For telecom companies, the coverage requirements are strict and all have the same objective: to avoid aggravating the digital divide. Campaigns and peripheries should not be abandoned for the benefit of big cities. Unlike its predecessor, the 5G network must quickly mesh most of the territory, without leaving white areas. Arcep's requests are commensurate with its ambitions for the new generation of standards: by 2020, each operator will have to cover at least two cities with more than 150,000 inhabitants. All will also have the obligation to invest heavily in the construction of 5G sites: at least 3000 for 2022, before the requirements of the regulator do not increase for the following years. In 2025, the Arcep requires that two-thirds of the population have access to new technology. In addition, by that date, at least 20% of the required 12,000 sites will have to be located in rural areas. Also note that a principle of "right to 5G" could be established. The companies that make the request will be able to be equipped with antenna and this at reasonable cost. 

A specification too ambitious? 

By more strictly controlling the price of licenses, Arcep wants to ensure that ISPs will have the financial capacity to meet the high objectives set for the deployment of 5G. "The less operators pay for licenses, the more they can invest in network deployment , " said Guillaume Vaquero, an engineer and telecommunications specialist at the Wavestone consulting firm. The specifications of the regulatory authority are based on this observation. It is far from lacking in ambition and ISPs will have to work hard to meet deadlines. It is therefore difficult to reconcile quality and quantity throughout the process. OF"Inevitably, income is also more limited in rural areas, it is a less profitable investment than in cities," says the specialist. If they should theoretically be able to bear this cost, not certain that all ISPs do so without complaining. The project being in its phase of public consultation, nothing is still engraved in the marble. The observations of the actors of the sector will be taken into account when drafting the final version of the specifications. Even if its key principles should not move, it could be adjusted.  

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