Spectrum 5.0: Re-Thinking Spectrum Awards for Optimal 5G Deployment

Increased competition in telecommunications services in the past two decades has generated considerable benefits for Europe’s citizens, consumers, industry and governments. More recently concern has grown regarding the relatively slow pace of 4G network deployment and fears that delays could be repeated with 5G. This paper analyses the role spectrum assignment policies have played in this mixed picture and concludes that the design of spectrum awards in a 5G context should evolve to place more emphasis on promoting infrastructure deployment. Examples of policy decisions impacting market outputs are used to support our argumentation with evidence drawn from recent in-depth studies and examples covering the main European markets. These suggest it is time to re-evaluate whether the amount of revenue raised should be the overriding measure of spectrum auction success, and whether auctions on fees are the most effective means of promoting competition and driving investment. We survey the analyses of causal relationship and trade-offs between various assignment methods and fee structures and conclude with considerations and guidelines for more effective and balanced spectrum assignment designs. As EU regulators consider reforms in this area the key challenge is how to align award processes with broader economic and societal objectives. We hope our paper can make a constructive contribution in this respect .