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Towards the successful deployment of 5G in Europe

  • 30 March 2017
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Europe can expect to see the introduction of 5G around 2020. The stakes are high – a ubiquitous and high-capacity mobile network is a vital foundation for future economic growth.

However, the path to deployment of 5G is not straight. It represents a complex interplay between infrastructure equipment manufacturers, device makers, operators and end-users, as well as regulators and policy makers at national, regional and global levels, who have significant decisions to make.

In the light of this, CERRE has published a new Telecom report. Building on the lessons to be learned from 1G through 4G, the report’s authors, Dr Wolter Lemstra, Professor Martin Cave and Professor Marc Bourreau, analyse which policy and regulatory frameworks could successfully contribute to a successful roll-out of 5G in Europe.

In their report, the authors identify numerous challenges and trade-offs that stakeholders will have to balance as they steer their way towards 5G deployment. Those forks on the road take the form of a number of questions. Those include, among others, the following:

  • To what extent should the economic opportunities of 5G be pursued systematically by policy makers, rather than relying on the continuation of current market trends?
  • Linked to this, should public authorities rely on just the Electronic Communication Code or adopt a more pro-active policy and regulatory stance, including close market monitoring and possible intervention if market failure occurs?
  • How will incumbent mobile operators fare? Will the mass market of consumers remain as the core business, along with the expected margin pressure? Or will new markets for business services emerge, offering a higher willingness to pay and opening up additional revenue streams?
  • Will barriers to entry be lowered, allowing new players to enter the market, or will they remain high?

CERRE Director General, Professor Bruno Liebhaberg, says:

“Europe cannot afford to be left behind in the global push towards 5G. However, reaping the potential benefits of this new technology requires an in-depth understanding of the challenges and decisions that lie ahead. This CERRE report, and the policy recommendations which conclude it, contribute to that understanding by framing the trade-offs, conflicts and policy questions which Europe will soon have to address.”

Document(s)
REPORT | Towards the successful deployment of 5G in Europe: What are the necessary policy and regulatory conditions?
Author(s)
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Wolter Lemstra
Wolter Lemstra
CERRE Research Fellow
Nyenrode Business Universiteit

Wolter Lemstra is a CERRE Research Fellow and Senior Research Fellow at Delft University of Technology.

His research interests are the development of the telecoms sector in relation to firm strategy and government policy, and the role of governance regimes and the institutional environment.

He has previously held senior management positions in the field of engineering and product management, sales and marketing, strategy and business development.

 

Martin Cave
Martin Cave
Visiting Professor
Imperial College London

Martin Cave is a Visiting Professor at the Imperial College London. He was an Academic Co-Director at CERRE and is now a member of the CERRE Board of Directors.

He is a regulatory economist specialising in competition law and in the network industries, including airports, broadcasting, energy, posts, railways, telecommunications and water.

Professor Cave has published extensively in these fields, and has held professorial positions at Warwick Business School, University of Warwick, and the Department of Economics, Brunel University.

Marc Bourreau
Marc Bourreau
CERRE Academic Co-Director
Télécom Paris

Marc Bourreau is a Academic Co-Director at CERRE and Professor of Economics at Télécom Paris (Institut Polytechnique de Paris). He is affiliated with the interdisciplinary institute for innovation (i3) for his research.

His research focuses on competition policy and regulation, digital markets, and telecommunications.

Marc holds a Ph.D. in Economics from the University of Paris Panthéon Assas.

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