[February 22, 2018] |
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GSMA Warns That Policymakers Must Act Now to Avoid Mobile Network "Gridlock" in Major Cities
The GSMA (News - Alert) today published a new report that examines the ability of
mobile networks to meet the exploding demand for mobile data in the
world's largest and densest cities. The GSMA/Boston Consulting Group
report, "Delivering the Digital Revolution (News - Alert): Will Mobile
Infrastructure Keep Up with Rising Demand?", finds that networks in
so-called "megacities" such as New York, Shanghai, Shenzhen and Tokyo
will face a significant gap between mobile data traffic demand and
available network capacity, with as much as 48 per cent of traffic
demand going unserved in ultra-dense urban areas by 2025. The report
highlights that regulatory reform will be critical in closing the
projected supply-demand gap and unlocking the economic potential of
next-generation mobile broadband.
"The current global regulatory landscape has been successful in creating
a competitive market that has made mobile connectivity accessible to
more than five billion people around the world," said John Giusti, Chief
Regulatory Officer, GSMA. "However, unless government policies encourage
investment, the network capacity required to satisfy future demand is
unlikely to be achieved.
"This will result in a bad deal for consumers and businesses,
particularly those in our most populous cities, and is likely to have a
direct impact on these economies. Measures such as making affordable
spectrum available and relaxing planning restrictions on small cells can
help foster an environment that enables operators to build mobile
networks ready for the future."
Factors such as 5G and the growth of the Internet of Things (IoT) will
cause mobile data demand to grow by more than 50 per cent in major
cities across the world by 2025. Consequently, mobile operators' capital
and operational expenditures in cities would need to triple to provide
sufficient network capacity - a level of expenditure that is simply not
sustainable under current conditions.
Bespoke policy approachs are required to serve the needs of all
stakeholders: citizens, governments and network operators. In the
report, the GSMA makes six key recommendations for policymakers to
promote infrastructure investment:
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Release additional affordable spectrum: Greater availability of
spectrum at fair prices could accelerate investment and have
significant benefits in terms of network capacity.
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Facilitate deployment of fronthaul and backhaul infrastructure:
Successful deployment of new macro and small cells to boost network
capacity requires access to backhaul networks.
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Provide more access to advantageous macro-cell and small-cell sites:
Rents for cell sites have risen steeply. Access to sites on publicly
owned buildings and street furniture would remove a significant
obstacle to new cell deployment.
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Allow network sharing agreements: Permitting operators the
flexibility to enter into commercial agreements on network sharing
would substantially reduce capital and operating costs for operators.
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Enable small-cell deployment: Streamlining planning approvals
for widespread small cell installation could expedite network
investment and increase capacity in large cities.
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Harmonise power density limits: Regulations setting exposure to
levels of radiofrequency electromagnetic files should be harmonised
with internationally recommended limits.
"Reforming regulation to reflect changing market and technology
realities is a long and complex process, but it is vitally important to
ensure our networks continue to deliver the best possible experience for
subscribers," Giusti said. "Reaching compromise and balancing the needs
of regulators and operators is critical to building the networks of the
future and unlocking the economic and social benefits that access to
mobile provides. All stakeholders must work together to ensure the
timely and affordable deployment of new technologies necessary to
delivering the next stage of our digital transformation journey."
"Delivering the Digital Revolution: Will Mobile Infrastructure Keep Up
with Rising Demand?" can be found here: www.gsma.com/publicpolicy/delivering-the-digital-revolution.
About the GSMA The GSMA represents the interests of mobile
operators worldwide, uniting nearly 800 operators with more than 300
companies in the broader mobile ecosystem, including handset and device
makers, software companies, equipment providers and internet companies,
as well as organisations in adjacent industry sectors. The GSMA also
produces industry-leading events such as Mobile World Congress (News - Alert), Mobile
World Congress Shanghai, Mobile World Congress Americas and the Mobile
360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180222005029/en/
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