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For 5G To Succeed, Coverage Must Take Priority Over Revenue

As telcos work to make 5G a reality by 2019, the focus should be on expanding coverage to more people rather than on the short-term potential revenue generated by the network’s premium cost, the head of a mobile interest group cautioned.

“Spectrum [the term for a mobile network] is a national resource and historically it is assigned through mechanisms such as auctions,” John Giusti, chief regulatory officer of the Global System for Mobile Communications Association, told The National.

Those auction prices are often tied to short-term revenue targets that can result in fewer people being connected. Shifting to a long-term approach would mean more robust 5G infrastructure and a far greater number of people with coverage, he said.

5G is expected to support significantly faster mobile broadband speeds and heavier data use than previous generations while enabling the full potential of the Internet of Things. From autonomous cars and smart cities to the industrial internet, 5G will be the linchpin for the future of communication.

By 2025, 5G will account for 16 per cent of total connections in Mena markets, says GSMA, a trade body that represents the interests of global mobile networks.

Telcos in the UAE stand to gain an additional $3.3 billion in revenues by 2026 from the digitalisation of industries through 5G, a report from Swedish technology company Ericsson says.

Mr Giusti said that having an affordable spectrum for 5G deployment was a global challenge.

“Historically, we have seen auctions decide who will get the spectrum and the prices are being driven to very high levels,” he said.

“Mobile operators and governments have common goals to connect people and deliver innovative services. But the challenge is to align their policies to meet these goals.” – The National

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