The German government has decided to make the entire 3.4-3.8 GHz band available for 5G use, which is a good idea.
For 5G to do its thing, it needs big chunks of continuous spectrum to ‘fatten the pipe’. Piecemeal auctions of 3.4-3.8 GHz spectrum (otherwise known as C-Band) such as we had in the UK earlier this year, are not as useful as offering up the whole lot in one go. The eventual outcome may end up being the same, but the whole process is a lot more complicated.
This decision has been met with approval by the mobile industry trade association, the GSMA. “The C-Band is the most vital frequency band for 5G,” said Mats Granryd, Director General of the GSMA. “Germany is demonstrating 5G leadership in the timely release of this vital spectrum, but risks undercutting its 5G future with unnecessary obligations. Spectrum is a limited resource and it must be used and managed as efficiently as possible to ensure a 5G future that will benefit all.”
Among the GSMA’s regulatory gripes are proposed coverage obligations for 3.6 GHz spectrum, which it says disregard the laws of physics. Since the time of Isaac Newton this had been frowned on by polite society and the GSMA has chosen to use this emotive concept to point out what short range these high frequencies have.
They do seem to have a point here. 5G is all about capacity and surely coverage obligations can be left to earlier generations in the short term and 5G over lower frequencies in the long term. As characterized by the GSMA this stipulation seems to be gratuitous, counter-productive and a classic example of regulation for the hell of it.
Other than that there are some inevitable whinges about roaming obligations and high reserve prices for the auction. In the latter case we have sympathy for the GSMA position as any attempt by the German government to push up the price of spectrum is a blatant cash grab and an indirect tax on mobile subscribers.