European auditors warn of digital divide due to 5G slowdown

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They see “probably” that the EU target of bringing these networks to urban areas by 2025 will not be met and warn of the high cost of replacing Chinese suppliers

The deployment of 5G mobile phone technology in the EU “needs a new impetus”. And their political authorities don’t say that, but their engineers, something that’s even more concerning because they’ve analyzed in detail the situation of these “long behind schedule” plans. The European Court of Auditors has done so, warning that at the current pace “the targets for this decade are unlikely to be met”.

The first target, set in 2016 by the European Commission (EC), was to ensure that urban areas and major transport routes have uninterrupted 5G coverage by 2025 – even then, the share would be lower than in other regions. And in March 2021, it was expanded to cover all populated areas of Europe before 2030. Today, however, the EC itself acknowledges that only 11 Member States are likely to meet the 2025 target. , while in Germany it would be “average” and in Italy “low”.

Hardly half of European partners have included such deployment targets in their national 5G strategies or broadband plans. Some have not yet transposed the European Communications Code into their national law and in many cases spectrum allocation has been delayed. As for the latter, of the three groundbreaking frequency bands used for the new networks – 700 MHz, 3.6/3.5 GHz and 26 GHz – only 53% of the available slots had been allocated by the end of the fall.

The Commission is partly to blame for this, as it has not defined the quality that 5G networks should provide, their minimum speed or maximum latency. According to the European auditors, this “lack of clarity” carries the risk that each state makes its interpretation with “different” betting methods. And if the situation persists – they emphasize – “it could create a digital divide due to unequal access to new services”, which would “affect the potential for economic development” in several sectors due to their uncertain performance.

In the case of the high-frequency band — the 26 GHz band, which offers high speeds over short distances but is more prone to interference — they found that the delays in its allocation were “primarily” due to “low” demand. communication network operators. In the 700 MHz and 3.6 GHz bands, the cross-border coordination problems with third countries along the eastern borders (Belarus, Russia and Ukraine) weighed against her. For this reason, some Baltic states, such as Estonia and Poland, have asked for more time for their assignments.

Spain is also a bit late, in his case because of the covid pandemic. The auction of the 26 GHz band, essential for the delivery of electronic communications services and for many low-coverage, high-capacity and low-latency 5G applications – e.g. industrial applications, gaming, augmented reality and transportation – was to take place in 2021, when it was postponed to early this year and now it is focused on the third quarter.

Once this band is allocated, it will represent a very significant change for corporate networks on 5G. After the auctions in other frequencies, the spectrum for these new networks is only in the hands of major operators such as Movistar, Vodafone, Orange and MásMóvil. But since the operating range in the 26 GHz is much greater – 8.5 times more than in the 3.5 GHz and up to 54 times more than in the 700 MHz, the possibility of private companies setting up their own network is older. This without forgetting the possible entry of new players such as Amazon, Microsoft and Cellnex.

Going back to the Court’s report, another reason slowing down the allocation of bands for 5G is network security. In Spain. For example, a clause was introduced in the auctions that forced them to comply with future changes in national or European regulations, leading to “uncertainty” about their strategy and purchasing decisions without it being clear whether they would be compensated.

The industry is particularly concerned about the ‘high risk’ status of some foreign suppliers, something about which there is no unified approach in the Twenty-seven. Apart from the problem that by operating under the laws of third countries they could clash with EU regulations, there are concerns that the subsidies they receive from their state “distort the internal market and create unequal conditions of competition”. China is the big one, but limiting its businesses would increase European investment costs for 5G by 24,000 million over the next decade. Removing and replacing the equipment it has supplied since 2016 would add another $3 billion.

Source: La Verdad

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