ifo Institute: Germany Ahead of the Game in 5G Expansion
Germany has laid the key foundations for the rollout of the 5G networks. This is the conclusion drawn by Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies, in a recent article. “With its ambitious coverage obligations, Germany is taking on a pioneering role – both for the nationwide rollout and for rollout along road and rail lines,” Falck says.
"Ahead of many other countries, Germany has vacated spectrum in the 700 MHz frequency bands that mobile network operators will need for the rollout of 5G networks nationwide. Germany is also a leader when it comes to networks for local 5G applications, for example for Industry 4.0 or agriculture and forestry. "
However, Falck adds that it is still important to expand the network rapidly now. “Although the 5G network can be made denser in cities by deploying small antennas, this may require twice as many radio masts as there are to date.” The lengthy German approval procedures for the construction of radio masts could cause the ambitious expansion plans to falter. “Planning and erecting an LTE cell tower can take up to two years,” Falck says. He adds that it is important to quickly identify the areas in which the new 5G frequencies can logically be applied and then systematically leverage this potential. “This applies not only to autonomous driving, but also to applications in health care, agriculture, and industry. This is the only way 5G can become a driver of growth,” Falck says.
Publication
Versteigerung der 5G-Lizenzen in Deutschland – ein Meilenstein auf dem Weg in die digitale Zukunft?
ifo Institut, München, 2019
ifo Schnelldienst, 2019, 72, Nr. 21, 03-14
