The relationship between utilities and mobile networks is getting closer as the former group looks to use 5G for smart grid and other systems, while contributing infrastructure, and even direct funding, to ease the costs of build-out. Such bonds have been seen particularly in Japan, but the converging interests are starting to be reflected in European regulatory policy too. For instance, in Denmark, it will be the energy agency, the DEA or Energistyrelsen, not the telecoms regulator, which will auction 450 MHz spectrum this year.
The agency will offer one licence in the low band spectrum, and says the allocation will be designed not to maximize auction revenues, but to ensure the spectrum is used effectively throughout the country. Denmark has a history of using beauty contests, rather than auctions, for spectrum allocation, and took that approach with some of the 5G-targeted licences it awarded last year in the 700 MHz, 900 MHz and 2.3 GHz bands. Some of this spectrum was provided free of charge in return for coverage mandates.
The 450 MHz spectrum has very long range and good indoor penetration capabilities, so can enable an affordable route to ubiquitous coverage. In the past, it was used initially for analog ‘1G’ services in some countries, and then sometimes awarded to support rural coverage in 3G and 4G. However, it has very limited capacity, so is not ideal for mobile broadband, and was only allocated in a few European countries, mainly in central Europe and the Nordic region. Although there were 450 MHz implementations of CDMA, UMTS and LTE, no large-scale deployment or ecosystem emerged.
In 5G, it is likely to be attractive for IoT applications that require universal coverage, but not high bandwidths, such as smart grid monitoring or smart metering – hence the interest of utilities. The DEA, whose single licence will run from the start of 2022 until the end of 2037, said it would be well-suited to the provision of IoT services, M2M communication and some wireless broadband, in sufficiently under-populated areas that the limited capacity would not be overwhelmed.
Elsewhere in 5G, the 700 MHz frequencies, mostly secured by incumbent TDC, have just been vacated by incumbents and made available for mobile networks, while operators are running 5G trials in test licences in 3.5 GHz spectrum – this will be auctioned later this year.
TT Network (a joint venture between Telia and Telenor) plans to close 3G networks down from April 2021, while 3 Denmark plans to start refarming 3G spectrum this year.