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The cost, coverage and rollout implications of 5G infrastructure in Britain

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  • Oughton, Edward J.
  • Frias, Zoraida

Abstract

Despite 5G still being embryonic in its development, there is already a quest for evidence to support decision-making in government and industry. Although there is still considerable technological, economic and behavioural uncertainty, exploration of how the potential rollout may take place both spatially and temporally is required for effective policy formulation. Consequently, the cost, coverage and rollout implications of 5G networks across Britain are explored by extrapolating 4G LTE and LTE-Advanced characteristics for the period 2020–2030. We focus on ubiquitous ultrafast broadband of 50 Mbps and test the impact of annual capital intensity, infrastructure sharing and reducing the end-user speed in rural areas to either 10 or 30 Mbps. For the business-as-usual scenario we find that 90% of the population is covered with 5G by 2027, but coverage is unlikely to reach the final 10% due to exponentially increasing costs. Moreover, varying annual capital intensity or deploying a shared small cell network can greatly influence the time taken to reach the 90% threshold, with these changes mostly benefiting rural areas. Importantly, simply by integrating new and existing spectrum, a network capable of achieving 10 Mbps per rural user is possible, which is comparable to the UK's current fixed broadband Universal Service Obligation. We contribute to the literature by quantifying the effectiveness of the spatial and temporal rollout of 5G under different policy options.

Suggested Citation

  • Oughton, Edward J. & Frias, Zoraida, 2018. "The cost, coverage and rollout implications of 5G infrastructure in Britain," Telecommunications Policy, Elsevier, vol. 42(8), pages 636-652.
  • Handle: RePEc:eee:telpol:v:42:y:2018:i:8:p:636-652
    DOI: 10.1016/j.telpol.2017.07.009
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    Cited by:

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    3. Juan Riol Martín & Raquel Pérez-Leal & Julio Navío-Marco, 2019. "Towards 5G: Techno-economic analysis of suitable use cases," Netnomics, Springer, vol. 20(2), pages 153-175, December.
    4. Li, Jie & Forzati, Marco, 2020. "Cost, performance and energy consumption of 5G fixed wireless access versus pure fiber-based broadband in Sweden," ITS Conference, Online Event 2020 224866, International Telecommunications Society (ITS).
    5. Hoeschele, Thomas & Dietzel, Christoph & Kopp, Daniel & Fitzek, Frank H.P. & Reisslein, Martin, 2021. "Importance of Internet Exchange Point (IXP) infrastructure for 5G: Estimating the impact of 5G use cases," Telecommunications Policy, Elsevier, vol. 45(3).
    6. Jeon, Chunmi & Han, Seung Hun & Kim, Hyeong Joon & Kim, Sangsoo, 2022. "The effect of government 5G policies on telecommunication operators’ firm value: Evidence from China," Telecommunications Policy, Elsevier, vol. 46(2).
    7. Jaume Benseny & Juuso Toyli & Heikki Hammainen & Andr'es Arcia-Moret, 2019. "The mitigating role of regulation on the concentric patterns of broadband diffusion. The case of Finland," Papers 1905.03002, arXiv.org, revised Oct 2020.
    8. Ashutosh Jha & Debashis Saha, 2022. "Mobile Broadband for Inclusive Connectivity: What Deters the High-Capacity Deployment of 4G-LTE Innovation in India?," Information Systems Frontiers, Springer, vol. 24(4), pages 1305-1329, August.
    9. Blind, Knut & Niebel, Crispin, 2022. "5G roll-out failures addressed by innovation policies in the EU," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    10. Liang Wang & Qiming Sun, 2022. "Market Competition, Infrastructure Sharing, and Network Investment in China’s Mobile Telecommunications Industry," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    11. Rendon Schneir, Juan & Ajibulu, Ade & Konstantinou, Konstantinos & Bradford, Julie & Zimmermann, Gerd & Droste, Heinz & Canto, Rafael, 2019. "A business case for 5G mobile broadband in a dense urban area," Telecommunications Policy, Elsevier, vol. 43(7), pages 1-1.
    12. Cheng, Xiaoyuan & Hu, Yukun & Varga, Liz, 2022. "5G network deployment and the associated energy consumption in the UK: A complex systems’ exploration," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    13. Jung, Juan & Katz, Raúl, 2023. "Exploring the heterogeneous link between broadband investment and coverage expansion using Unconditional Quantile Regressions," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277982, International Telecommunications Society (ITS).
    14. Edward J Oughton & Niccol`o Comini & Vivien Foster & Jim W Hall, 2021. "Policy choices can help keep 4G and 5G universal broadband affordable," Papers 2101.07820, arXiv.org, revised Feb 2021.
    15. Bauer, Johannes M. & Bohlin, Erik, 2022. "Regulation and innovation in 5G markets," Telecommunications Policy, Elsevier, vol. 46(4).
    16. Forge, Simon & Vu, Khuong, 2020. "Forming a 5G strategy for developing countries: A note for policy makers," Telecommunications Policy, Elsevier, vol. 44(7).
    17. Benseny, Jaume & Walia, Jaspreet & Finley, Benjamin & Hämmäinen, Heikki, 2019. "Feasibility of the City-driven Neutral Host Operator: The case of Helsinki," 30th European Regional ITS Conference, Helsinki 2019 205169, International Telecommunications Society (ITS).
    18. Prado, Tiago S. & Bauer, Johannes M., 2021. "Improving broadband policy design using market data: A general framework and an application to Brazil," Telecommunications Policy, Elsevier, vol. 45(4).
    19. Queder, Fabian & Lehr, William & Haucap, Justus, 2020. "5G and Mobile Broadband Disruption," ITS Conference, Online Event 2020 224872, International Telecommunications Society (ITS).
    20. Robles-Carrillo, Margarita, 2021. "European Union policy on 5G: Context, scope and limits," Telecommunications Policy, Elsevier, vol. 45(8).
    21. Kim, Yongkyu & Kim, Kiwon & Jang, Yunjeong & Park, Seungkeun, 2022. "Value of Spectrum for Mobile Communications: Case of Korea," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265642, International Telecommunications Society (ITS).
    22. Edward J. Oughton & Ashutosh Jha, 2021. "Supportive 5G Infrastructure Policies are Essential for Universal 6G: Assessment using an Open-source Techno-economic Simulation Model utilizing Remote Sensing," Papers 2102.08086, arXiv.org, revised Jun 2021.

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