Put simply, 5G is an enabling technology for enhanced mobile broadband, delivering a fibre-like user experience at a price lower than 4G. It also facilitates the internet of things (IoT), making it an enabling platform for what has been described as the “4th industrial revolution”. Recognising its immense transformational value, governments in developed and developing markets are keen to promote the deployment of 5G mobile services in their countries.
Average monthly data usage per subscriber is growing by 30-50% per year. In some countries average data use per smartphone is now above 20 GB a month. Competition between operators means that users get larger data bundles but do not pay more and mobile operator revenues are flat. However, operators are continually investing in4G and 5G mobile broadband networks and new spectrum licences are needed to cater for the huge increase in traffic.
With falling prices paid for data, spectrum licences in some countries have become too costly for operators and there is a risk of falling behind in 5G. STEFAN ZEHLE advances a methodology for sustainable spectrum pricing.
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