Cognitive Radio Oriented Wireless Networks. 13th EAI International Conference, CROWNCOM 2018, Ghent, Belgium, September 18–20, 2018, Proceedings

Research Article

Pricing Private LTE and 5G Radio Licenses on 3.5 GHz

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  • @INPROCEEDINGS{10.1007/978-3-030-05490-8_13,
        author={Heikki Kokkinen and Seppo Yrj\o{}l\aa{} and Jan Engelberg and Topias Kokkinen},
        title={Pricing Private LTE and 5G Radio Licenses on 3.5 GHz},
        proceedings={Cognitive Radio Oriented Wireless Networks. 13th EAI International Conference, CROWNCOM 2018, Ghent, Belgium, September 18--20, 2018, Proceedings},
        proceedings_a={CROWNCOM},
        year={2019},
        month={1},
        keywords={Mobile communication market Private networks Spectrum pricing Spectrum sharing Regulation 5G},
        doi={10.1007/978-3-030-05490-8_13}
    }
    
  • Heikki Kokkinen
    Seppo Yrjölä
    Jan Engelberg
    Topias Kokkinen
    Year: 2019
    Pricing Private LTE and 5G Radio Licenses on 3.5 GHz
    CROWNCOM
    Springer
    DOI: 10.1007/978-3-030-05490-8_13
Heikki Kokkinen1,*, Seppo Yrjölä2,*, Jan Engelberg3,*, Topias Kokkinen1
  • 1: Fairspectrum Oy
  • 2: Nokia
  • 3: Finnish Communications Regulatory Authority
*Contact email: info@fairspectrum.com, seppo.yrjola@nokia.com, jan.engelberg@ficora.fi

Abstract

The interest in private LTE and private 5G radio licenses is increasing along the IMT frequency bands, higher frequencies, new spectrum assignments, and demand for wireless industrial communication. This paper studies the private LTE and 5G license pricing using Finland as an example. The methods for pricing are the actual block license-based frequency fee pricing, Administrative Incentive Pricing (AIP), device based Private Mobile Radio pricing, and the device-based pricing of the Netherlands. The study shows that the selection of the pricing mechanism greatly impacts the license prices. Spectrum policy and regulation can be the trigger for novel private network ecosystem creation through creation of simple authorization processes to reduce the cost and minimize the complexity of use of spectrum for private LTE. In particular, provision of clear rules and guidance for spectrum valuation and pricing for the national regulator itself, as well as for the stakeholders wanting to supply and operate private LTE was found essential in reducing the cost and minimizing the complexity of private LTE spectrum use.