On regulations for 5G: Micro licensing for locally operated networks

Future 5G networks aim at providing new high-quality wireless services to meet stringent and case-specific needs of various vertical sectors beyond traditional mobile broadband offerings. 5G is expected to disrupt the mobile communication business ecosystem and open the market to drastically new sharing based network operational models. 5G technical features of network slicing and small cell deployments in higher carrier frequencies will lower the investment barrier for new entrants to deploy local radio access networks and offer vertical specific services in specific areas and allow them lease the remaining required infrastructure on demand from mobile network operators (MNO) or infrastructure vendors. To realize the full vision of 5G to benefit the society and promote competition, innovation and emergence of new services when the 5G end-to-end network spans across different stakeholders administrative domains, the existing regulations governing the mobile communication business ecosystem are being refined. This paper provides a tutorial overview on how 5G innovations impact mobile communications and reviews the regulatory elements relevant to 5G development for locally deployed networks. This paper expands the recent micro licensing model for local spectrum authorization in future 5G systems and provides guidelines for the development of the key micro licensing elements. This local micro licensing model can open the mobile market by allowing different stakeholders to deploy local small cell networks with locally issued spectrum licenses ensuring pre-defined quality guarantees for the vertical sectors’ case specific needs.     

The evolving 5G case study in United States unilateral spectrum planning and policy

This paper tracks increasingly aggressive initiatives by the United States government to reallocate spectrum on an expedited and unilateral basis well before conclusion of inter-governmental coordination. Rather than embrace the customary commitment to achieve consensus on global spectrum allocations at the International Telecommunication Union (“ITU”), the Federal Communications Commission (“FCC”) has auctioned off large blocks of frequencies for the next generation (“5G”) of wireless services.The FCC might have framed its first 5G auction, reassigning Ultra High Frequency (“UHF”) spectrum, as a one-time deviation from compliance with long standing, intergovernmental coordination procedures. These frequencies have ideal signal propagation characteristics and the Commission could use financial incentives—unavailable in most nations—to expedite “repacking” by incumbent broadcasters willing to move, share or abandon spectrum in exchange for ample financial compensation. However, the FCC has continued to auction off 5G spectrum on grounds that it must find ways to abate an acute shortage of wireless bandwidth and doing so will regain or maintain global leadership in wireless technologies. This paper offers a critical rebuke to unilateral spectrum management, because the short-term benefits expected by the U. S. government likely will be offset by countervailing harms to 5G manufacturers, carriers and consumers. The paper tracks fractious preparation for the ITU's 2019 World Radio Conference by the U.S. delegation and the mixed record achieved there. Additionally, the paper explains how injecting trade, industrial policy and national security issues at the ITU can trigger more delays and disputes, including possible retaliation by nations displeased with U.S. efforts to subvert traditional technology optimization goals.A worst case scenario has the ITU deadlocked and unable to reach closure on “mission critical” spectrum planning issues at World Radio Conferences, convened every four years. The paper concludes that costs and likely challenges to the efficacy and legitimacy of the ITU will reduce the benefits accruing from the FCC's unilateral, spectrum planning campaign.     

Platform configurations for local and private 5G networks in complex industrial multi-stakeholder ecosystems

Data and connectivity platforms play a crucial role in the digitalization of different sectors of our society. In complex industrial multi-stakeholder ecosystem contexts connectivity and data platforms are increasingly becoming converged, and private, vertical-specific local 5G networks are emerging. For this context, we depict and analyze alternative configurations for converging connectivity and data platforms and propose appropriate management actions for combining these platforms and achieving legitimacy. We examine a complex industrial multi-stakeholder ecosystem of a port and observe that in the considered case study, the convergence of connectivity and data platforms enhances digitalization and helps to create shared local information between stakeholders. The research identifies a set of regulatory challenges for local 5G networks in complex industrial multi-stakeholder ecosystems where the telecommunication and information technology-related regulations meet with vertical-specific regulations, leading to a complex environment in which to operate. As highly country-specific, these regulations can open new business opportunities or significantly slow down or even prevent a market opening to local private 5G networks for vertical-specific use.     

全球价值链治理与地方产业网络升级研究--以上海浦东集成电路产业网络为例

在全球化背景下，以地方产业网络为发展模式的区域经济，其竞争力的提升需要在全球价值链中与区域外的经济行为主体积极互动，并实现升级。在这种研究视角下，本文首先界定了价值链治理的概念，然后从理论上阐述了全球价值链治理的主要类型，以及价值链治理对地方产业网络升级的影响。并在调研的基础上，以嵌入生产者驱动型价值链的浦东集成电路(以下简称IC)地方产业网络作为研究的对象，分析了全球IDM公司的治理行为对浦东IC地方产业网络升级的影响。在此基础上笔者提出，价值链治理者——全球领先公司，对地方产业网络升级的推动或阻挡，决定于地方产业网络的升级行为是否侵犯了其核心竞争力，而不是决定于地方产业网络升级的“类型”。这一结论是对国际研究的补充和修正。     

Expanding mobile wireless capacity: The challenges presented by technology and economics

As demand for mobile broadband services continues to explode, mobile wireless networks must expand greatly their capacities. This paper describes and quantifies the economic and technical challenges associated with deepening wireless networks to meet this growing demand. Methods of capacity expansion divide into three general categories: the deployment of more radio spectrum; more intensive geographic reuse of spectrum; and increasing the throughput capacity of each MHz of spectrum within a given geographic area. The paper describes these several basic methods to deepen mobile wireless capacity. It goes on to measure the contribution of each of these methods to historical capacity growth within U.S. networks. The paper then describes the capabilities of 4G LTE wireless technology, and further innovations off of it, to further improve network capacity. These capacity expansion capabilities of LTE-Advanced along with traditional spectrum reuse are quantified and compared to forecasts of future demand to evaluate the ability of U.S. networks to match future demand. Without significantly increasing current spectrum allocations by 560 MHz over the 2014–2022 period, the presented model suggests that U.S. wireless capacity expansion will be inadequate to accommodate expected demand growth. This conclusion is in contrast to claims that the U.S. faces no spectrum shortage.     

How to manage strategic alliances in OEM-based industrial clusters: Network embeddedness and formal governance mechanisms

The rapidly growing original equipment manufacturer (OEM)-based industrial clusters have been a prominent form of economic organization in several emerging Asian markets. Characterized by close interdependence and intertwined personal linkages, firms of Asian OEM-based industrial clusters participate in the phenomenon of strategic alliances. However, how these alliances can be effectively managed through formal governance mechanisms within embedded networks requires further investigation. This study uses social network analysis to identify personal, ownership, and technology networks in 141 semiconductor firms in an OEM-based industrial cluster in Taiwan that feature different types of OEM-led alliances and the prevalence of Guanxi. We find that relational embeddedness based on personal ties and structural embeddedness based on ownership ties support the employment of formal governance mechanisms. We also pay particular attention to the moderating role of network embeddedness in diminishing the relationship between transaction hazards and formal governance mechanisms. By identifying the embeddedness context in the governance of alliances, our research contributes to a better understanding of the ways in which formal governance mechanisms are contingent on the network embeddedness of OEM-based industrial clusters in Taiwan and other similar Asian economies.     

Investment decisions in the wireless industry applying real options

The wireless industry is one of the most capital intensive high-technology industries. This paper applies real options techniques to estimate investments under uncertainty in two new ventures: (a) deferral of the expansion from 2.5G to 3G networks; and (b) expansion of a 2.5G network using Wi-Fi as an alternative technology. The cases are examined and analyzed both qualitatively and quantitatively, using realistic assumptions and parameters. Investment cost, number of subscribers, pricing of services, and risk are at the core of investment decision processing. In both cases, sensitivity analysis of the value of the (real) option considering the above key parameters was conducted, to extrapolate useful findings that should be taken into consideration by the decision makers in wireless companies.     

A business case for 5G services in an industrial sea port area

5G is a technology that was designed to provide citizens with access to faster and innovative wireless services. While different technical aspects related to 5G have been extensively examined by researchers worldwide, a lack in the existing literature is the economics of 5G in terms of business cases of specific 5G use cases. In this article we analyse the business case for three 5G use cases in an industrial sea port area, the Hamburg port in Germany, over the period 2020–2030. The first use case is enhanced mobile broadband and the results show a payback period lower than one year for all the scenarios analysed. The second use case is automation of container handling in the port's container terminal. It was found that the payback period is also lower than one year with a positive business case net present value in all scenarios studied. The business case of the third case, augmented reality for construction projects in the port's area, is challenging as the payback period was 5 years for the baseline case. Moreover, when performing the sensitivity analysis, it was found that in several scenarios there was a negative return on investment, and it was not possible to recover the investment over the time period studied. It can be concluded that mobile network operators will need to be careful as not all new 5G service offerings may have a positive business case. Future research work should focus on studying other 5G use cases in the port area, and on examining other industrial areas beyond ports such as airports, science parks and manufacturing facilities.     

5G networks: Will technology and policy collide?

Despite being still under development, it is envisaged that 5G networks will provide a ‘fibre-like’ experience to mobile users. As such, they are expected to accommodate services with very different requirements in terms of latency, bandwidth and reliability, among others, for the vertical sectors. However, the European Union has just approved the Telecommunications Single Market Regulation, which enshrines the network neutrality principle and guarantees that ‘all traffic through the Internet is treated equally’. This article explores the potential conflict between net neutrality regulation and future 5G services, particularly regarding network virtualisation. We present a discussion on the challenges of building net neutrality upon judgements on whether traffic optimisation is objectively necessary. This proves complex in a technological environment that envisions network ‘slices’ created and priced on-demand according to the Quality of Service (QoS) required by specific applications at any given time. In addition, we argue that the ‘anything-as-a-service’ paradigm might turn into an important source of innovation for the future Internet infrastructure layer, and thus for the ecosystem as a whole.     

Cognitive radio systems specific for IMT systems: Operator’s view and perspectives

Cognitive radio (CR) is still an emerging and disruptive communication technology which is expected to improve the overall efficiency of the spectrum use. It is envisaged that cognitive radio systems (CRS) could impact many aspects of communications and in particular could facilitate accommodation of the increasing amount of services and applications in wireless networks. Intensive research on CR aims at maximising the utilisation of the limited radio spectrum resource. There have been many advances in CR regarding the technology development aspects; however supplementary research on regulation, policy and market structure reforms in relation with application specific deployment is still required before any CR-based spectrum access could be implemented for specific broadband mobile applications. Indeed, mobile community is still at an early stage of understanding and development of CR capabilities and it is premature to envisage wide deployment of CRS without careful consideration of regulatory and business issues. Therefore, this paper gives a classification of CR-based network and application scenarios, and investigates the feasibility of them from a regulatory perspective at a global level (ITU-R). Main part of this paper presents the wireless network operator’s approach to CRS specific for International Mobile Telecommunications (IMT) systems and proposes the radio environment map (REM) concept as a cognitive tool that increases environmental awareness in wireless network operator’s networks. Studies, which the authors performed internally and within the framework of a collaborative European project as well as within ITU-R yield the conclusion that, at shorter term, only intra-operator based CRS maximises the possibility for CR capabilities to be implemented.     

Revisiting Wireless Internet Connectivity: 5G vs Wi-Fi 6

In recent years, significant attention has been directed toward the fifth generation of wireless broadband connectivity known as ‘5G’, currently being deployed by Mobile Network Operators. Surprisingly, there has been considerably less attention paid to ‘Wi-Fi 6’, the new IEEE 802.1ax standard in the family of Wireless Local Area Network technologies with features targeting private, edge-networks. This paper revisits the suitability of cellular and Wi-Fi in delivering high-speed wireless Internet connectivity. Both technologies aspire to deliver significantly enhanced performance, enabling each to deliver much faster wireless broadband connectivity, and provide further support for the Internet of Things and Machine-to-Machine communications, positioning the two technologies as technical substitutes in many usage scenarios. We conclude that both are likely to play important roles in the future, and simultaneously serve as competitors and complements. We anticipate that 5G will remain the preferred technology for wide-area coverage, while Wi-Fi 6 will remain the preferred technology for indoor use, thanks to its much lower deployment costs. However, the traditional boundaries that differentiated earlier generations of cellular and Wi-Fi are blurring. Proponents of one technology may argue for the benefits of their chosen technology displacing the other, requesting regulatory policies that would serve to tilt the marketplace in their favour. We believe such efforts need to be resisted, and that both technologies have important roles to play in the marketplace, based on the needs of heterogeneous use cases. Both technologies should contribute to achieving the goal of providing affordable, reliable, and ubiquitously available high-capacity wireless broadband connectivity.     

The 3G transition: Changes in the US wireless industry

The transition of the wireless industry from second generation (2G) to third generation (3G) is more than a simple technology upgrade. The industry's service profile will move far beyond telephony and services will converge with the computing and content sectors. This will bring many more players into this already huge industry. Thus the transition to 3G needs to be regarded as a major economic transformation as it requires a major reconfiguration of the existing value networks. Standards have traditionally been essential in the success of wireless services and will play an increasingly critical role in the future.Due to the on-going transition, wireless standardization has changed considerably—reflecting changes in the configuration of the value network. While the number of major air-interface standards has been reduced to just two, the overall number of standards bodies has increased by almost an order of magnitude while the number and scope of interfaces being standardized has grown at a breathtaking pace. This growth reflects the need to support the industry's new coordination requirements at critical interfaces in the value network. At the same time, the importance of the traditional standards development organizations (SDOs) has diminished as more nimble industry consortia have taken over the main responsibilities for standardization. The major standardization battlegrounds have shifted up the protocol stack to the service enabler level. In addition, the manufacture of handsets and other mobile communication devices is transitioning to a more horizontal industry structure. These changes, along with changes in the way value is extracted from new services and their influence on the reconfiguration of the industry are discussed.     

Managing strategic system-building networks in emerging business fields: A case study of the Dutch smart grid sector

Companies that wish to launch innovative sustainability technologies can collaborate in strategic networks of actors from industry, government and research institutes to pro-actively build a business ecosystem around their new technology. This is called collective system building. In this paper, we examine how to effectively manage networks for collective system building. Based on a review of the literature, we identify the key factors of effective network management and we propose a conceptual framework for network management at the network level. Subsequently, we conduct a multiple-case study in the Dutch smart grid sector to examine how these key factors are implemented by system-building networks. We find differences with the existing network management literature regarding network composition, network management structure, governance modes, decision-making processes, project management, the free-rider problem and trust-building mechanisms. Our study contributes to a better understanding of effective management of system-building networks, which in turn can lead to greater success in establishing new business fields. We contribute to the literature on strategic business networks, specifically on emerging business networks building new business fields.     

A layered United States Universal Service Fund for an everything-over-IP world

Support through the United States Federal Universal Service Fund for high-cost areas has been principally defined in terms of telephone service. Fund growth due to increases in wireless lines and implicit support for broadband infrastructure has created an untenable situation, and fundamental reform is expected. The cause underlying this growth is convergence between the telephone network, wireless networks, the Internet, and cable networks. This convergence will pose additional serious long-term challenges to the fund. This paper proposes a restructuring of the high-cost funds based on a layered model. Both contributions and distributions are focused on network infrastructure, without distinction between voice and broadband. The proposal uses a new definition of communication services to guarantee technology neutrality, and includes service area reform and cost efficiency measures. This layered approach repositions the fund for future converged networks.     

5G and the notion of network ideology,or: The limitations of sociotechnical imaginaries

Transnational communication networks are produced in contestation between and among multinational corporations and nation-states. In the study of the governance of communication networks governance in science and technology studies, traditionally the emphasis has been on sociotechnical imaginaries (Jasanoff & Kim, 2015) which encapsulate joint futures that produce institutional configurations and the discursive roles in the power tussle between various stakeholders. I argue that next to the studying of power over infrastructures and their governance by sociotechnical imaginaries, there is an increasing need to study how power is distributed and control is exercised through the shaping of the technological materiality of infrastructures, as is happening for instance in the process of standardization. To describe the workings of the distribution of power and the exercising of control through networks, governance, and standardization, I expand the concept of network ideologies (Bory, 2020) to show how several network ideologies are at play in the shaping of 5G networks. I base my analysis on the qualitative analysis of standard-setting processes through document analysis of mailinglist conversations, standards, and policy documents, as well as through the parallel operation of experimental 5G networks. The analysis shows that sociotechnical imaginaries are insufficient to show the political process of the distribution of power and opportunities for control through the production of transnational communication infrastructures. The notion of network ideologies might provide a basis to study the merging of internet and telecommunication infrastructures, their standard-setting, and their governance as well as the excommunication of the user by relinquishing its ability to understand and configure infrastructures.     

The evolving 5G case study in spectrum management and industrial policy

Even before the International Telecommunication Union (“ITU”) reaches consensus on spectrum allocations for fifth generation wireless technologies (“5G”), commercial ventures scramble to offer new equipment and services. Expediting 5G wireless service can benefit consumers and businesses at the risk of stressing the traditional process of spectrum planning that combines study, dialogue and consensus building at ITU conferences.This paper explains why most nations refused to endorse key United States 5G spectrum allocation proposals at the ITU’s, 2015 World Radio Conference. U.S. representatives underestimated the time needed for consensus building, despite increasing demand for wireless video and the evolving Internet of Things. Other contributing factors include U.S. support for treating spectrum like property, use of “incentive auctions” to clear broadcast television spectrum with unprecedented speed and enough existing wireless spectrum allocations in most nations.The paper concludes that the U.S. cannot expect faster frequency reallocations, particularly when it and other nations pursue matters having little to do with spectrum optimization. The paper offers recommendations on best practices for improving the consensus building process.     

Supply network dynamics as a source of new business

Supply networks where operational control extends well over organizational boundaries have emerged in industries producing relatively complex and customized products with tight profit margins. Products like ships, automobiles and telecommunication systems incorporate complex design and engineering skills that are produced through a tier-structured, multi-level supply networks. Efficiency in these networks has stemmed from specialization and cost efficiency in individual value adding operations. This paper demonstrates how supplier networks have evolved and how the inherent dynamics of these networks generate constantly new business opportunities for fast moving companies with a clear focus on operational efficiency. We use action research methodology on cases from the shipbuilding and constructions industry to document some of the dynamic features of supply networks. This insight is then applied to the electronics manufacturing services business to explain the fundamentals of successful operations in this highly competitive business with ever narrowing margins. In this dynamic market of contract manufacturing companies with constant focus on the reduction of production lead times by incorporating value added operations either physically or logically to maintain and recreate profitable business. To succeed in doing this, issues related to industrial parks, local tacit knowledge and reverse/repair logistics must be managed in cross-organizational manner. We conclude that there is an ever-changing limit to the expansion of supplier networks through specialization and cost efficiency, and that at one point contracting and integrating parts of the supply network will create operationally outperforming business models that further boost the inherent dynamics of supply networks.     

Urban wireless traffic evolution: The role of new devices and the effect of policy

The emergence of new wireless technologies, such as the Internet of Things, allows digitalizing new and diverse urban activities. Thus, wireless traffic grows in volume and complexity, making prediction, investment planning, and regulation increasingly difficult. This article characterizes urban wireless traffic evolution, supporting operators to drive mobile network evolution and policymakers to increase national and local competitiveness. We propose a holistic method that widens previous research scope, including new devices and the effect of policy from multiple government levels. We provide an analytical formulation that combines existing complementary methods on traffic evolution research and diverse data sources. Results for a centric area of Helsinki during 2020–2030 indicate that daily volumes increase, albeit a surprisingly large part of the traffic continues to be generated by smartphones. Machine traffic gains importance, driven by surveillance video cameras and connected cars. While camera traffic is sensitive to law enforcement policies and data regulation, car traffic is less affected by transport electrification policy. High-priority traffic remains small, even under encouraging autonomous vehicle policies. Based on peak hour results, we suggest that 5G small cells might be needed around 2025, albeit the utilization of novel radio technology and additional mid-band spectrum could delay this need until 2029. We argue that mobile network operators inevitably need to cooperate in constructing a single, shared small cell network to mitigate the high deployment costs of massively deploying small cells. We also provide guidance to local and national policymakers for IoT-enabled competitive gains via the mitigation of five bottlenecks. For example, local monopolies for mmWave connectivity should be facilitated on space-limited urban furniture or risk an eventual capacity crunch, slowing down digitalization.     

Xiaolingtong versus 3G in China: Which will be the winner?

Xiaolingtong (XLT), a new type of mobile phone system based on PHS technology for wireless access of fixed-line telephone networks, has grown very rapidly in China. However, there are many doubts about the future of XLT once 3G (the third generation of mobile communication) is finally employed. This paper proposes a theoretical framework to assess and compare XLT and 3G from four perspectives: technology, market demand, business models and government policy. It concludes that XLT and 3G will coexist with existing 2G/2.5G mobile communication networks for a considerable period of time. With service collaboration and integration, the coexistence of both of these technologies can enhance China's mobile communication infrastructure and support the growth of mobile commerce.     

Regulation and innovation in 5G markets

This article examines the roles and consequences of different approaches to 5G market design for innovation. The analysis is grounded in a conceptual framework that explicitly considers the complementarities among networks, applications, and services. Good policy arrangements align the legal and regulatory framework with the technical and economic characteristics of the sector and the broader, social visions for new technologies. Because the future development of 5G technology and markets is open-ended, policy has to be developed with incomplete knowledge and under conditions of uncertainty. These circumstances call for adaptive forms of policy and a focus on the creation of guardrails for market players, backed up by regulatory powers to intervene more directly if necessary. In the technologically dynamic 5G system, multiple stable policy constellations are feasible, but they likely will result in divergent outcomes and performance characteristics. Monitoring of the experience with different national and international developments will facilitate global learning and the incremental improvement of policy frameworks.