To facilitate effective rollouts, ACMA will also need to balance the new and emerging approaches to sharing spectrum which could improve the network for consumers, with the need for certainty of investment for existing and incumbent spectrum licence holders. This is to ensure that both prospective and incumbent spectrum licence holders can make informed and strategic decisions to better support their network planning and manage their investment costs. ACMA has also stated that information about the timing and sequence of major spectrum allocations will be provided in advance under its forward allocation work program. In its 2019-2023 five year spectrum outlook ( FYSO), ACMA recognised the importance of ensuring spectrum is made available to MNOs in a timely manner. In light of the significant challenges and costs that MNOs face in rolling out 5G, it is important that regulatory settings do not hinder fast and cost-effective rollouts of this critical infrastructure. Regulating MNOs and the network in the emerging 5G market For this reason, the Government and regulators must work in tandem to support the investments being made by MNOs for the success of the network. These challenges will make it more difficult for MNOs to maintain their profitability in the short to medium term while their networks are being rolled out.
#Investing in 5g technology upgrade
Network costs have also been projected to double as MNOs manage the upgrade from 4G to 5G.
#Investing in 5g technology install
To overcome these limitations, MNOs must install new towers and also retrofit new cells across major cities. Even after MNOs acquire new spectrum, additional physical infrastructure is still required to supplement the network so it can achieve the coverage and usage that it is capable of delivering. Īlthough the Government has highlighted its commitment to assist MNOs with the successful deployment of the network, the fast and efficient rollout of 5G across Australia still depends heavily upon MNOs making costly infrastructure investments. This is in part because high-frequency spectrum, such as the mmWave bands, have propagation limitations, including reduced range and low indoor penetration. Īlthough MNOs support the allocation of these high frequency mmWave bands, the allocation of more spectrum in lower frequency bands is also required. The Government stated that making this new mmWave spectrum available will assist MNOs in rolling out the network and providing extremely fast high capacity services. In line with these objectives, the Government recently legislated its spectrum re-allocation declaration, which allows the Australian Communications and Media Authority ( ACMA) to re-allocate ultra-fast millimetre wave 26 GHz band spectrum ( mmWave) across 29 regions in 2021. In its 2017 directions paper, 5G – Enabling the Future Economy, the Government identified its objective to support the rapid deployment of 5G networks by ensuring that spectrum is made available in a timely manner and that arrangements are made which will allow MNOs to deploy the necessary infrastructure quickly. To help achieve the rollout of 5G, the Government has outlined a number of policy objectives and law reforms to support network deployments. Although the benefits this transformation will have on industry and innovation in Australia are largely yet to be realised, what is apparent is that the future of 5G promises to provide high data speeds, high reliability and low latency. The mobile telecommunications sector in Australia is currently preparing for a generational shift that will see significant advances in technology. This article examines the challenges and opportunities that lie ahead for investment and the regulation of the telecommunications industry in Australia. The challenge for the Australian Federal Government ( Government) and regulators will be striking a balance between incentivising investment and facilitating a competitive landscape that will benefit Australian consumers. However, reaching this point will require significant investment from MNOs, such as building more mobile towers, cells and acquiring new spectrum to ensure that they can support the delivery of 5G and maximise its capabilities. The transition to 5G will lower the cost of delivering data for mobile network operators ( MNOs) and will also provide Australian mobile consumers with a higher quality of service which will allow MNOs to meet the demands for new and emerging data-driven services. The advent of fifth generation mobile technology (5G) is set to create significant challenges and opportunities for stakeholders in the telecommunications industry.
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