The National Association of Local Telecommunications Operators (Aotec) has joined forces with the company Neutroon and the I2Cat Foundation in its proposal to create a neutral 5G operator to promote the deployment of this new technology in rural areas, ensuring its simultaneous arrival in major cities.
The document responds to the open call for expressions of interest issued by the State Secretariat for Telecommunications and Digital Infrastructure regarding 5G. The autonomous communities of Valencia, Murcia, Extremadura, and Castilla-La Mancha have submitted letters of support for Aotec's proposal. This proposal focuses on municipalities with fewer than 20,000 inhabitants, a total of 7,706 localities in Spain, which are less economically attractive to large operators when it comes to investing in the new technology.
The neutral operator will be responsible for creating all the network infrastructure in the municipality: from towers, base stations, macro cells, and micro cells, to interconnecting fiber optic cables, edge computing facilities, and more. To provide access to mobile operators, as many virtual networks as there are companies interconnecting to offer their service in the area will be created.
The local operator will act as a neutral operator, although this initiative will also be open to other public and private entities. The foundation for this project lies in R&D, specifically the development of a single interface that allows mobile operators access to and interoperability with the deployed multi-operator 5G local networks, thus guaranteeing system homogeneity. With this objective, the proposal has the support of the I2Cat center and the company Neutroon.
Aotec
proposes two options: a neutral operator without its own frequencies or with them, either through spectrum allocation or a sharing agreement.
If it does not have its own frequencies, it would provide wholesale service in its local area, opening its network to other operators. Conversely, if the government opts for frequency sharing or allocation in sparsely populated areas, the neutral operator deploying the network could provide both wholesale and retail access.
In this regard, Aotec points out that Germany, Sweden, France, the Netherlands, and even the United Kingdom are allocating frequencies for local or regional licenses, while countries like the United States and Japan are analyzing the spectrum ranges they will dedicate to local networks.
The proposal submitted to the Government argues that the development of a neutral operator “guarantees homogeneous economic growth throughout the country,” ensuring that 5G reaches large cities and small towns simultaneously, thus connecting the territory. This would eliminate the digital divide and open new development opportunities. The new technology will be the foundation for job creation in less populated areas by applying the potential of 5G to livestock farming, agriculture, and industry.
Mandatory Use
: Aotec considers it essential for the execution of this project that the Government establish a requirement for spectrum-owning operators to use the multi-operator local public networks deployed in municipalities with fewer than 20,000 inhabitants. A condition that must be included in the tender documents and the call for bids for the 700 MHz spectrum auction, which is still pending.
Specifically, Aotec argues that the aid should be focused solely on municipalities with fewer than 5,000 inhabitants, where the €4.23 billion would be invested between 2021 and 2023. These incentives would be granted through direct subsidies and weighted according to the number of inhabitants and the dispersion of housing within the municipality.
Furthermore, Aotec advocates for decentralized management of the aid at the regional level to ensure greater efficiency, given that they are best positioned to understand the real needs of their territories.
Regarding the population range of 5,000 to 20,000 inhabitants, the proposal considers that private projects without public support would be viable in these localities, "with some exceptions." Conversely, the obligation to use multi-operator 5G local networks should apply to all municipalities with fewer than 20,000 inhabitants.