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Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion – announces Sorin Grindeanu (ANCOM)

de Adrian N Ionescu , 27.11.2018

The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for public consultation.

According to the action timetable, the auction for granting the rights to use the frequency bands considered for fixed and mobile communications services associated with this technology will be concluded by December 15, 2019, according to Agerpres.

Today, in this select company, we wanted to launch in public consultation Romania’s National Strategy for 5G. Today, we take pride in some things. Romania ranks among the firsts in the world in terms of the performance of communications networks. In August 2019, 94% of households in Romania had 4G LTE network coverage. Due to these achievements, there are places in Romania that have progressed towards the economy and lifestyle of the future, and I am thinking about Alba Iulia, where smart city applications are already being tested and where the quality of life is already improved by these applications. But there are also areas on Romania’s map that are not covered by the telecommunication networks, too many citizens do not use the new technologies and too many companies do not use them,” said Sorin Grindeanu, President of ANCOM, at the conference organised for launching the National Strategy for 5G for public consultation.

Our goal is to launch the 5G services in 2020. I was close to saying 20 20. We want to launch these services in flagship cities, and by 2025 we would like to have 5G in all urban centres, as well as on the connections between them – highways, express roads, railways,” Sorin Grindeanu announced.

The ANCOM official also said that the implementation of 5G technologies will have a multiplier effect in the national economy, including through the creation of new jobs.

Tests made so far show that the new technology package can deliver faster and more energy and spectre efficient communications. Studies tell us that this new type of connectivity and technology will encourage an activity increase in all economic sectors and will bring prosperity and create many jobs. The European Commission estimates that the implementation of 5G technologies will have a multiplier effect in the Romanian economy of EUR 4.7 billion and create over 250.000 jobs. 5G will also require operators to make investments. We are talking about EUR 58 billion at the European Union level and over two billion euros in Romania. The amounts are calculated by the European Commission, do not include licenses and take into account the existing networks, not from scratch. But profits will correspond to them,” said Sorin Grindeanu.

Calendar of actions

The timetable for the actions to be taken on the allocation and future use of the 470-790 MHz frequency band provides that a first step is the timely release of the appropriate radio spectrum for the future development of broadband mobile communications systems. For the band of 700 MHz to be available, ANCOM will propose the adjustment of the TNABF (National Table for Radio Frequency Allocation) and the allocation of the 790 MHz band to the terrestrial mobile service, at the moment being assigned to terrestrial digital television services.

Another action with an impact on the implementation of 5G technologies is the conclusion of bilateral coordination agreements with neighbouring countries by June 30, 2019. At the same time, ANCOM will conduct a monitoring campaign on radio spectrum from the bands that are the subject of the auction and will make available to the auction participants a report on the situation of radio signals identified on the Romanian territory within these bands, coming from the territory of other states.

By July 31, 2019, the Authority plans to adopt the decision on the organization of the procedure for granting the licenses, namely to set the conditions for granting the rights of using frequencies and other regulations needed.

ANCOM’s proposal is that by December 15, 2019, the tender will be completed for granting the rights for using the 700 MHz frequency band and the other bands considered for providing fixed and mobile communications associated with 5G technology.

At European level, the following priority frequency bands have been identified for the early introduction of the 5th generation mobile communications systems in the European Union: the 700 MHz (694-790 MHz) band, the band of 3400-3800 MHz and the band of 26 GHz (24.25-27.5 GHz).

The EU estimates investments needed for 5G of EUR 56-58 billion in 2025, which means an average investment of 145 euro/European user, 7% more than for 4G and 20% more than for 3G.

For Romania, there is estimated a need for investment in 5G of EUR 2.3 billion. In addition, a quantitative input-output analysis for examining the interdependencies between 38 economic sectors in the European Union shows that the multiplier effects at the level of the whole Union are estimated at EUR 142 billion and 2.4 million jobs.

At the same time, for Romania alone, the multiplier effects are estimated at EUR 4.7 billion, respectively the creation of over 252,000 jobs. The estimated knock-on effects for four sectors (automotive, transport, utilities and health) indicate benefits of EUR 62.5 billion/year at the EU level.

On November 19, 2018, within the Inter-institutional Working Group under the coordination of the State Secretary from the Ministry of Communications and Information Society (MCSI) Manuela Catrina and with the ANCOM’s support, the final version of the National Strategy for the Implementation of 5G Technologies in Romania has been agreed.

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