How to approach 5G policies
The implementation of 5G will be a major milestone not only in national communications, but also for the national
economies and societies. 5G represents a fundamental step towards bringing the virtual and real worlds closer
together. It will bring unprecedented amounts of helpful data, ability to process them both on a localized as well as
centralized basis, along with the ability to operate robotic devices remotely in the real world. It will fundamentally
change the ways how we do business, how we work, live, interact and entertain ourselves.
Governments will play a pivotal role in transition to 5G and digital economies by finding the right balances
between economic competitiveness, security, privacy, digital inclusion and democratic rights of citizens.
A successful outcome would entail concurrent expansion of economies, improvement in human health, well-being,
health of societies, quality and sustainability of our environment, management of scarce resources, our security
and human freedoms. 5G may also boost inclusiveness by helping disadvantaged groups to overcome physical,
geographical and other barriers. Disruptive power of 5G and digital technologies may be helpful in in addressing
some of the world’s most fundamental challenges, both regionally and globally. To avert adverse outcomes, it is
however imperative to manage such disruptive powers rightly. Choice of digital and 5G policies is hence most crucial
for the future of our economies, societies and nations.
The purpose of this report is to provide a visionary strategic overview of options and opportunities around 5G and
to give high-level policy recommendations, also relevant for the Czech Republic. We have approached this topic as
broadly as possible, putting it into the context of the latest industry trends in global technology and telecommunications.
Among others we have looked into emerging new economic and technology driven opportunities for 5G wholesale
networks, open RAN, a case for private 5G networks for Industry 4.0 and beyond, emerging synergies between the
energy utilities and digital communications infrastructure, strategic implications of the latest trends for telecoms, as well
as health and security considerations.
We suggest policymakers to approach digital and 5G policies, including spectrum allocation, along the following
principles:
a.
b.
c.
An open mind about digital policies, 5G policies and spectrum allocation. When designing their digital and
5G policies, policymakers should remember that the current wireless industry’s business model was practically
designed in the 1980-90s by their predecessors, mainly through spectrum allocation. 5G and future wireless
technologies are likely to require a fundamental rethink of the wireless business model for both infrastructure
and services. Given the strong role of regulation in wireless, any transformative changes in the wireless business
model would likely have to involve the policymakers as well as the wireless industry, along with multiple other
stakeholders. Transformative changes may entail for example building super-secure national wireless networks,
national wireless wholesale networks or localized private wireless networks. Moves in this direction may lead to
the emergence of new entities, resulting from transformation of the legacy telecoms, entrants from other legacy
industries such as power utilities, or newcomers, who adopt differentiated business models right from the onset.
Spectrum allocation policies will continue playing crucial role in driving the right type of transformation in digital
connectivity to the benefit of national economies. While policies should encourage spectrum owners to make the
best contribution to the national economies also through their own success, the current spectrum owners cannot
not implicitly assume that methods of spectrum allocation and use will never fundamentally change, and that they,
in their current form and with their current business models, will remain the best suitable candidates for acquiring of
all future spectrum in a form of long-term nation-wide allocations.
Fairness, lawfulness, and proportionality. Digital policies should be fair. They should avoid infringing the rights
of any entities or giving an unfair advantage to others. Spectrum allocation policies should not substitute broader
regulations, which require different legislative and enforcement mechanisms. Policies should also not attempt to
introduce rules retrospectively. Finally, policies should be proportional, i.e. avoid situations when some entities
are forced to incur excessive regulatory-induced costs to secure their ability to continue their normal operations
on grounds, which are not clear, fair, linked to transparent policies and supported in a law. That said spectrum has
always been awarded with conditions and the nature of such conditions may evolve with changing policy priorities.
Long-term vision, transparency and co-operation with all stakeholders. It is important that commercial entities
have grounds to endorse the new policies. Given the often strongly conflicting interests between different
market players and industries, combined with aversion to risks and changes in many industries, it is essential that
policymakers present sensible long-term visions in a transparent way. Such visions should be constructively
discussed with commercial stakeholders from different industries, to give them an opportunity to see how to best
adapt and what long-term benefits they may expect. Given the importance of digital economies and 5G, not
utilizing 5G spectrum auctions for pursuing digital transformation policy visions would be a missed opportunity.
Executive summary
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