5G Spectrum Will Turn into an Easily Tradable Commodity

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2Q 2019 | IN-5507


Spectrum Is Becoming a More and More Valuable Resource


Following the Italian 5G spectrum auction last October, which was somewhat of a shock, the whole telecommunications industry has been carefully following the activity around the German spectrum auctions. Italian Mobile Service Provider (MSPs) paid a total of €6.55 billion for 5G spectrum. Germany, Europe’s largest economy, has just completed its record long, 497 round 5G spectrum action and raised also €6.55 billon. Based on recent 5G spectrum auctions, the business potential in enterprise verticals, and skyrocketing consumer data traffic in the next decade, interest in 5G spectrum is higher than any other telecommunications generation before it.

5G supports three main spectrum bands: sub 1 GHz, mid-band (between 1 GHz and 6 GHz), and high-band (over 24.25 GHz. In order to not miss the ability to offer a full 5G experience, MSPs need to operate in all the three in long-term. However, the pricing of these frequencies varies significantly: from the beginning of the 5G auctions, the 3.4-3.8 GHz and the 2.5 GHz have proved to be t…

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