According to several telecom specialists, operators' uncertainty about whether or not to use Huawei's 5G antennas for their new mobile networks is growing.

Yet the law on securing mobile networks (nicknamed "anti-Huawei") has made things clearer. Indeed, operators must get the green light from Anssi - the National Agency for Information Systems Security - before using 5G equipment. The Agency then has two months to study their files.

At the end of December, Orange, SFR and Bouygues Telecom all submitted authorization applications for the deployment of Chinese 5G antennas in France.

However, according to several sources, cyber-experts in the French-speaking part of the country are making more and more requests for further information. It's not serious, "says a concerned operator. If they're trying to save time this way, it's a mistake. A court would never agree with them, the case law is very clear".

What operators are actually afraid of is that the Anssi is deliberately dragging its feet to avoid having to post a denial of clearance ahead of the 5G frequency allocations, scheduled for April. If equipment manufacturers were to be denied to operators before that date, the latter would then be weakened and could therefore lower their bids for the 5G auctions .

According to the new legal framework, the absence of a positive response from the Anssi within two months is tantamount to a refusal. But this time limit runs from receipt of a complete file... a complete file. Hence the irritation of the operators in front of what one actor describes as "delaying tactics" to postpone the deadline.

A specialist in the sector even indicates that "Some operators are impatiently waiting for an implicit refusal to be able to take legal action".

But the strategic interest of the four players differs. Indeed, Free, using only antennae of the Finnish Nokia, is not concerned.

Orange does not use Huawei antennas in France to date. However, it wants to have the possibility to solicit the Chinese supplier for its future 5G network.

As for SFR and Bouygues Telecom, which use Huawei on half of their respective networks, they are keen to be able to continue doing business with the Shenzhen giant. Doing without its 5G antennas would indeed require dismantling the 3G and 4G antennas for compatibility reasons. The cost would be enormous. You would have to buy and install this equipment. Above all, a large part of the network would be disrupted for many months, pushing customers into the arms of the competition. "Free would become, without doing anything, the second best network in the country... while it remains far behind" as a telecom specialist analyses.

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Source : Les Echos

The mobile access network sharing agreement between Orange Belgium and its competitor Proximus has just been suspended by the Belgian Competition Authority after Telenet, the third largest mobile operator in the French overseas market, filed a complaint against it. Telenet believes that the alliance would create a giant on the Belgian telecoms market.

"Telenet understands what motivates mobile operators to want to share their mobile network, albeit within the limits of legality, but has serious questions about how far-reaching it is that Belgium's two largest mobile players want to work together in a joint venture," the management said.

All the more so as "such a far-reaching agreement between Proximus and Orange Belgium also has the effect of reducing the number of players holding mobile infrastructure from three to two", Telenet pointed out after an argument that did not leave the Belgian regulator indifferent. And that could well interest French operators.

"In view of their possible impact on competition, the Competition College requires Orange and Proximus to suspend the implementation of the shareholders' agreement and the RAN sharing agreement concluded between them on 22 November 2019, as of the date of receipt of this decision and until 16 March 2020," explained the Belgian Competition Authority at the end of last week.

The decision adopted by the Belgian Competition Authority allows Orange Belgium and Proximus to continue their preparatory work for the establishment of their future joint venture. Indeed, the Belgian regulator's decision "does not prevent the sending of RFPs for the acquisition of network equipment and the selection of employees to be transferred, if this does not lead to the conclusion of binding agreements".

However, Orange Belgium and Proximus were keen to defend their agreement finalised last November "the agreement on the sharing of the mobile access network will have positive effects for customers and for Belgian society as a whole, in particular a faster and wider deployment of 5G, a significant reduction in overall energy consumption and a total improvement of the mobile experience, while maintaining a strong differentiation between the parties in terms of services and customer experience".

As a reminder, this alliance aims to create a 50/50 joint venture between the two operators. "Although sharing their mobile access networks, the two companies will retain full control of their own spectrum resources and will continue to operate their core networks independently to ensure a differentiated customer and service experience," said Orange Belgium and Proximus at the announcement of the agreement.

The Belgian mobile telecommunications market is currently driven by three main operators: Proximus, (44% market share in 2017), followed by Orange Belgium (27%) and Telenet, (with a market share between 20 and 30%).

For several months now, various rumours have been circulating that a fourth operator is entering the Belgian market, thus introducing more competition in a market characterised by a small number of players and relatively high prices. In a study published in 2018, the Belgian regulator had itself shown itself in favour of the entry of a fourth mobile operator on the market, noting that this new competition would make it possible to lower prices and improve innovation, but at the risk of a reduction in investment, particularly in rural areas.

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Source : ZDNet

This time, let's do it! Operators who wish to launch into 5G can now apply to the Arcep for frequencies in the 3.4 - 3.8 GHz band. Operators must apply before 12 noon on February 25th 2020.

The regulatory authority will examine the applications and issue authorisations during the first half of 2020. It is expected that the four operators - Orange, SFR, Bouygues Telecom and Free Mobile - will be successful at the end of the award procedure.

As resources are limited, the real question is how many frequencies each applicant will have.

A mixed allocation system has been planned: the frequencies are divided into fixed-price lots and variable-price lots, which will be determined by auction. The fixed-price lots each contain a 50 MHz block, while the variable-price lots consist of a 10 MHz block. An operator must apply for at least 40 MHz and is not allowed to have more than 100 MHz.

Fixed price blocks are sold for EUR 350 million each. The others start at EUR 70 million.

However, the government does not intend to squeeze the candidates and a certain flexibility in the purchase of frequencies is thus provided for: the 10 MHz blocks can be paid for over 4 years and the 50 MHz blocks over 15 years - this is the duration of the allocation of frequencies. This is the duration of the frequency allocation, which may be extended if necessary.

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Source : Numerama

On December 17th last, Arcep announced that it had agreed with the authorities on the specifications for the future 5G call for tenders. To afford the first 50 MHz blocks in the 3.5 GHz band, each operator will have to pay the fixed sum of 350 million euros but also meet the various commitments set by the authorities.

The remaining 110 MHz, in the band concerned, will be auctioned in blocks of 10 MHz. The starting price for the latter was set at €70 million. However, this should not be the business of operators. Indeed, they were campaigning for the authority not to set too high amounts in order to allow them to invest more heavily in the deployment of their future 5G networks.

The authorities should therefore obtain from this call for tenders, at least, a total sum of "2.17 billion euros for all the frequencies allocated". However, they have not been greedy in the light of the various 5G auctions organised by our neighbours, such as in Germany or Italy.

The specifications should be published in the coming days and will officially launch the award procedure conducted by Arcep. Candidate operators will then have eight weeks to prepare their application files.

Applicants will not be able to obtain less than 40 MHz of frequencies and will therefore not be able to obtain more than 100 MHz of frequencies in the 3.5 GHz band. The frequencies will be allocated for a period of 15 years and may be extended for a further 5 years if there is a subsequent agreement between the authorities and the operators concerned.

The examination of the applications submitted by the candidates should start in March. The Arcep will make its arbitrations and allocate the first fixed blocks of 5G frequencies at the end of March. The actual auctions will take place in May, while the procedure will be finalised in June.

However, the obligations on operators will not change. As initially planned by Arcep, the specifications provide for the opening of 5G in at least two cities per operator before the end of 2020. Subsequently, operators will be forced to deploy their services on 3,000 sites in 2022, 8,000 sites in 2024 and finally 10,500 sites in 2025.

But let's not forget the rural areas. Thus, 25% of the sites in the 3.5 GHz band "of the last two milestones will have to be deployed in an area bringing together municipalities in sparsely populated areas and those in industrial areas, outside the main urban areas", Arcep said.

The Authority also states that "from 2022 onwards, at least 75% of the sites must have a throughput of at least 240 Mbit/s at each site. This obligation will gradually be extended to all sites until 2030".

In addition, as provided for in European texts, roads are also a priority. Coverage of motorway-type roads will thus have to be ensured in 2025, before coverage of the main roads is planned for 2027.

Operators will also have to undertake to respond to "reasonable" requests from companies and public authorities, in order to provide them with "appropriate offers with coverage and performance, or, if the operator prefers, by entrusting them with its frequencies locally".

The authorities are demanding more cooperation between operators in order to ensure better indoor coverage of buildings and to ensure greater transparency on their deployment forecasts and breakdowns. Finally, operators will also have to undertake to welcome MVNOs to their respective networks "in order in particular to encourage innovation by all actors in the sector".

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Source : ZDNet

On 22th November last, the Arcep adopted the procedures for allocating frequencies in the 3.5 Ghz band. Two days later, the government announced the reserve price below which it did not intend to transfer the first portion of spectrum dedicated to the 5G mobile network. And the operators make a face: the floor price seems far too high to them.

4 sets of 50 MHz allocated to each of the four operators at a fixed price of 350 million euros. Then 11 blocks of 10 Mhz that they will then compete at auction, bidding 70 million euros. 2.17 billion, while Orange, SFR, Bouygues Telecom and Free did not expect this reserve price to exceed The Arcep even campaigned for a prize of 1.5 billion "grand maximum".

In an interview at Les Echos, however, Agnès Pannier-Runacher presents this amount as "reasonable". In particular with regard to the sums paid by German or Italian operators. The representative of Bercy also argued that this figure corresponds to that determined by the Commission des Participations et Transferts, which "analyses the price below which the French people's assets do not seem to him to have to be sold".

A discourse that clashed with the operational and financial reality of 5G, reacted the operators. "This decision is not consistent with what has been put forward by the government in recent months," said Arthur Dreyfuss, President of the TFF. It constantly warns the State against a price boom that would deprive operators of the means to invest in deployment afterwards. Especially since the obligations assigned to them in return for the allocation of frequencies seem too ambitious.

5G frequencies too expensive: another dispute on the road to the future mobile network. Their disagreements relate not only to the reserve price, but also to the size of fixed-price blocks, the pace of deployment, 5G hedging obligations and the duration of licences. A non-exhaustive list of demands on which the regulator is far from having satisfied the Telecom Quartet.

Against the advice of Arcep, which favoured 60 MHz blocks, the state finally opted for 50 MHz. "With 50 MHz blocks, for a total of 310 MHz, the risk is that one operator will get twice as many frequencies as another," explained Sébastien Soriano, President of the Arcep, in Le Figaro. Bouygues Telecom and Free fear that they will lose out in the deal as they are less well equipped financially to bid higher.

Iliad also called for the removal of the third milestone in the deployment of 5G sites - 12,000 at the end of 2025 - for operators who would not obtain the famous 60 MHz. Arcep did not grant this right, but this obligation has been reduced to 10,500 sites. An adjustment reflecting the many criticisms encountered by the initial schedule. This assumed an acceleration of 1,000 sites per year from 2020 to 2022 and then to 2,500/year in 2023-2024 and 4,000/year in 2025 alone.

Bouygues Telecom, Orange and Free replied that they were unplayable, citing technical, financial and administrative constraints. Operators simply do not have the means to make the "leap" of 4,000 sites initially expected in 2025, argues Bouygues Telecom. For whom, moreover, "there is also no capacitive need of this magnitude on this horizon".

8,000 sites in 2024 and 10,500 in 2025 finally but not only in urban areas. The Arcep intends to ensure that the deployment of 5G will also benefit low-density areas, in line with government expectations. The regulator initially proposed to extend this obligation to the 22,000 municipalities of priority deployment areas (PDAs) as defined by the 2015 decision on the allocation of 700 MHz frequencies.

Again, there was no unanimity on this idea. Bouygues Telecom is not going about it in four ways: "Hedging obligations are very heavy and inconsistent with the object sold". For the operator, the 3.4-3.8 GHz band is intended for uses primarily for capacity, so that its use "is not relevant in sparsely populated areas".

Also mentioned by other actors, an approach consisting in prioritizing 5G deployments on "territories that we are sure will not benefit from FttH before a date to be determined". One of the approaches mentioned by Cerema or by the Assembly of French Departments is to use fixed 5G to compensate for future deficiencies in very high wireline broadband.

Finally, the opportunity to add the ZDP perimeter to the very recent list of "Industrial Territories" is suggested by several actors: Cerema again, but also Banque des Territoires or Orange. An addition finally retained by the Arcep in its specifications.

The last point of contention on the part of operators is the granting of 5G licences for an initial period of only fifteen years, which can be extended by five years after the Arcep's assessment. The Authority considers that this period is "appropriate to the level of investment required to fulfil the obligations under the procedure". Not Orange, Bouygues Telecom and SFR: the trio believes that this will not be enough to make their investments profitable.

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Source : DegroupNews