EUROPEAN COMMISSION Brussels, 14.9.2016 COM(2016) 588 final COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 5G for Europe: An Action Plan {SWD(2016) 306 final}



1.Timely deployment of 5G: a strategic opportunity for Europe Twenty-four years after the successful introduction of the 2G (GSM) mobile networks in Europe, another revolution is in sight with a new generation of network technologies, known as 5G, opening prospects for new digital economic and business models. 5G is not fully standardised yet but its key specifications and technological building blocks are already being developed and tested. 5G is seen as a game changer, enabling industrial transformations through wireless broadband services provided at gigabit speeds, the support of new types of applications connecting devices and objects (the Internet of Things), and versatility by way of software virtualisation allowing innovative business models across multiple sectors (e.g. transport, health, manufacturing, logistics, energy, media and entertainment). While these transformations have already started on the basis of existing networks, they will need 5G if they are to reach their full potential in the coming years. The Commission strategy for the Digital Single Market (DSM strategy) and the Communication Connectivity for a Competitive Digital Single Market: Towards a European Gigabit Society underline the importance of very high capacity networks like 5G as a key asset for Europe to compete in the global market. Worldwide 5G revenues should reach the equivalent of €225 billion in 2025. Another source indicates that the benefits of 5G introduction across four key industrial sectors may reach €114 billion/year. The Commission launched in 2013 a Public-Private-Partnership (5G-PPP) backed by 700 million euro of public funding with the aim of making sure that 5G technology is available in Europe by 2020. However, research efforts alone will not be sufficient to ensure Europe's leadership in 5G. A wider effort is needed to make 5G and the services that will flow from it a reality, in particular for the emergence of a European "home market" for 5G. The proposed European Electronic Communications Code will support the deployment and take-up of 5G networks, notably as regards assignment of radio spectrum, investment incentives and favourable framework conditions, while the recently adopted rules on open Internet provide legal certainty as regards the deployment of 5G applications. This communication complements and leverages this new regulatory framework through a set of targeted actions. These draw on multiple consultations, events with stakeholders, a targeted survey, several studies, industry consultations, and early results from the 5G-PPP. It presents an action plan for timely and coordinated deployment of 5G networks in Europe through a partnership between the Commission, Member States, and industry. 2.The need for a coordinated approach Since major research efforts are underway worldwide, it is essential to avoid incompatible 5G standards emerging in different regions. If Europe is to help shape a global consensus as regards the choice of technologies, spectrum bands and leading 5G applications effective, EU coordination and planning on a cross-border basis will be needed. The launch of commercial 5G services will also require substantial investments, the availability of a suitable amount of spectrum, and close collaboration between telecom players and key user industries. Network operators will not invest in new infrastructures if they do not see clear prospects for a solid demand and regulatory conditions that make the investment worthwhile. Equally, industrial sectors interested in 5G for their digitisation process may want to wait until the 5G infrastructure is tested and ready. In this context, a lack of coordination between national approaches concerning the roll-out of 5G networks would create a significant risk of fragmentation in terms of spectrum availability, service continuity across borders (e.g. connected vehicles) and implementation of standards. As a result, it would delay the creation of a critical mass for 5G-based innovation in the Digital Single Market. This is particularly evidenced by the initial delay in the deployment of 4G in Europe: in 2015, more than 75% of the US population had access to 4G/LTE versus only 28% of the EU population. Despite the fact that the gap is steadily narrowing, there are still major differences between Member States. This is why the Commission is proposing this action plan, as a means of fostering the adequate coordination. It aims to build momentum for investment in 5G networks and to create new innovative ecosystems, thus enhancing European competitiveness and delivering concrete benefits to society. The Commission has identified the following key elements for the plan: -Align roadmaps and priorities for a coordinated 5G deployment across all EU Member States, targeting early network introduction by 2018, and moving towards commercial large scale introduction by the end of 2020 at the latest. -Make provisional spectrum bands available for 5G ahead of the 2019 World Radio Communication Conference (WRC-19), to be complemented by additional bands as quickly as possible, and work towards a recommended approach for the authorisation of the specific 5G spectrum bands above 6 GHz. -Promote early deployment in major urban areas and along major transport paths. -Promote pan-European multi-stakeholder trials as catalysts to turn technological innovation into full business solutions. -Facilitate the implementation of an industry-led venture fund in support of 5G-based innovation. -Unite leading actors in working towards the promotion of global standards. 3.Keeping Europe ahead in the 5G race: key areas for action 3.1.A common EU timetable for the introduction of 5G An ambitious 5G introduction timeline is essential for Europe to have a leading position and to take early advantage of the new market opportunities enabled by 5G, not only in the telecom sector, but in the whole economy and society. Digitisation of European industry should be initiated today on the basis of available resources (notably 4G/LTE, Wi-Fi or satellite) and will be boosted by the gradual adoption of 5G from 2018 onwards. The Commission will assist Member States in the context of their national broadband plans and the Future Internet Forum (FIF) and in collaboration with industry through the 5G-PPP to establish common objectives and concrete steps for testing and deploying 5G .

Action 1 — The Commission will work with Member States and industry stakeholders towards the voluntary establishment of a common timetable for the launch of early 5G networks by the end of 2018, followed by the launch of fully commercial 5G services in Europe by the end of 2020. The common timetable should be developed as quickly as possible. The EU timetable should be driven by the following key objectives: -Promoting preliminary trials, under the 5G-PPP arrangement, to take place from 2017 onwards, and pre-commercial trials with a clear EU cross-border dimension from 2018. -Encouraging Member States to develop, by end 2017, national 5G deployment roadmaps as part of the national broadband plans. -Ensuring that every Member State will identify at least one major city to be "5G-enabled" by the end of 2020 and that all urban areas and major terrestrial transport paths have uninterrupted 5G coverage by 2025. 3.2.Unlocking bottlenecks: making 5G radio spectrum available The deployment of 5G networks requires the timely availability of a sufficient amount of harmonised spectrum. A major new requirement specific for 5G is the need for large contiguous bandwidths of spectrum (up to 100 MHz) in appropriate frequency ranges to provide higher wireless broadband speeds. Such bandwidths are only available in spectrum above 6 GHz. Therefore, the designation of new frequency bands above 6 GHz is on the agenda of the World Radio Conference 2019 (WRC-19), based on a list of candidate bands identified at WRC-15, subject to ITU studies, with the aim of targeting the widest possible global harmonisation. Pioneer spectrum bands Member States and the Commission, working together in the Radio Spectrum Policy Group (RSPG), have recognised the importance of the early identification of common EU-wide pioneer spectrum bands to enable 5G take-up as early as in 2018. This is indispensable to give proper guidance to industry and keep the EU on a par with spectrum availability in other regions of the world. This first set of such pioneer bands should include a mix of spectrum with different characteristics to address the versatile 5G requirements. The identified bands should also have a potential for global harmonisation and take advantage of the sizeable amount of harmonised spectrum already allocated in the EU for wireless broadband below 6 GHz. The spectrum mix should include: -Spectrum below 1 GHz, focussing on the 700 MHz band: its availability by 2020, as proposed by the Commission, being critical for 5G success. -Spectrum between 1 GHz and 6 GHz, where EU-wide harmonised bands are already available and licensed in a technology neutral way across Europe. In particular, the 3.5 GHz band seems to offer high potential to become a strategic band for 5G launch in Europe. -Spectrum above 6 GHz, for new and wider bands to be defined, in line with the WRC-19 milestone. This approach is supported by industry, and considered as an adequate response to the developing spectrum plans in competing economies. Action 2 — The Commission will work with Member States to identify by the end of 2016 a provisional list of pioneer spectrum bands for the initial launch of 5G services. Taking due account of the RSPG Opinion in preparation, the list should include frequencies in at least three ranges of the spectrum: below 1 GHz, between 1 GHz and 6 GHz, and above 6 GHz, to account for the diverse application requirements of 5G. Additional spectrum bands The set of pioneer spectrum bands should be complemented in a next step to reflect 5G spectrum requirements in the longer term. This step should concentrate on identifying 5G spectrum bands above 6 GHz, focusing on the bands on the agenda for WRC-19, while also assessing further opportunities for economies of scale at international level. The potential for spectrum sharing, including under licence-exempt use, should be maximised as it generally supports innovation and market entry, in line with the objectives of the legislative proposals set out in the proposed European Electronic Communications Code. A particular challenge will be to anticipate the diverse 5G use cases in order to properly satisfy all key spectrum requirements. Action 3 — The Commission will work with Member States to: -Agree by end of 2017 on the full set of spectrum bands (below and above 6 GHz) to be harmonised for the initial deployment of commercial 5G networks in Europe, based on a planned RSPG opinion on 5G spectrum. The final spectrum harmonisation at EU level will be subject to the usual regulatory process once relevant standards have been developed. -Work towards a recommended approach for the authorisation of the specific 5G spectrum bands above 6 GHz, taking due account of the opinions of BEREC and RSPG. An early indication of technical options and feasibility should be available through CEPT studies by end 2017. 3.3.Leveraging fixed and wireless: a very dense network of 5G access points Addressing the interplay between fibre and wireless deployment requirements The planned 5G networks are expected to serve up to one million connected devices per square kilometre, about a one thousand fold increase as compared to today. This dramatic surge in the number of devices will also increase traffic per network access point, which will require increasingly smaller cells to deliver the planned connectivity performance and an increase in the density of antennae deployed. The small cells will also have to be connected efficiently to the rest of the network with high capacity backhaul communications since the aggregated volume of data that will transit through these small cells will reach several gigabits per second. In most cases, these will be fibre links, while other high capacity wireless backhauling could also be used. The path towards 5G and the 2025 connectivity objectives for Europe outlined in the Communication Connectivity for a Competitive Digital Single Market: Towards a European Gigabit Society will therefore rely on more general deployment of high-capacity networks across the continent. The earlier core broadband networks are rolled out the sooner 5G will be available on a large scale.

The magnitude of the required investments can only be met with a closer cooperation between Member States, the financial community and the European Investment Bank (EIB) to mobilise private and public support, and notably to alleviate risks of a digital divide. This will require public and private actors as well as providers and users of connectivity to develop common implementation roadmaps. On this basis, the Commission calls for a voluntary coordination of implementation roadmaps between relevant public and private actors, in particular to coordinate investments in cellular base stations and fibre infrastructures. Reducing the cost of installing access points A simplification of the deployment conditions for dense cellular networks would reduce costs and support investments. The proposed European Electronic Communications Code aims to remove deployment barriers for the installation of small cells, subject to meeting common technical requirements. Member States should work to eliminate these barriers in the interests of speedy and cost-effective deployment. In addition, other administrative aspects sometimes create unnecessary burdens for the installation of small cells, such as local planning procedures, high site rental charges, the variety of specific limits on electromagnetic field (EMF) emissions and of the methods required to aggregate them . Therefore, the Commission will further encourage best practice by national, regional and local authorities in the deployment conditions for small access points.. Action 4 — As part of the development of the 5G national roadmaps, the Commission will work with the industry, the Member States, and other stakeholders to: -Set roll-out and quality objectives for the monitoring of the progress of key fibre and cell deployment scenarios, to meet the target of at least all urban areas and all major terrestrial transport paths, having uninterrupted 5G coverage by 2025. -Identify immediately actionable best practice to increase the consistency of administrative conditions and time frames to facilitate denser cell deployment, in line with the relevant provisions of the proposed European Electronic Communications Code. 3.4.Preserving 5G Global Interoperability: standardisation challenges Standards at the heart of innovation Standards are of paramount importance to ensure the competitiveness and interoperability of global telecommunication networks. The communication ICT standardisation priorities for the Digital Single Market sets out a clear path to foster the emergence of global industry standards under EU leadership for key 5G technologies (radio access network, core network) and network architectures. It also recognises the particular challenges raised by the need to bring together communities of stakeholders with very different standardisation cultures in order to enable the innovative use cases of key industries, Lately, the international standardisation agenda for 5G has quickly moved forward. The first phase foresees the early availability of standards for ultra-fast mobile broadband solutions. A second phase should rapidly deliver the standards for other use cases, such as those for industrial applications, and, crucially, make available standards promoting open innovation and opportunities for start-ups. From an EU strategy perspective, the main challenges identified are as follows: -The timely availability of 5G standards which are globally accepted, including possible acceleration of the work in 3GPP. -The initial focus on ultra-fast broadband services should ensure compatibility with further development of standards for innovative use cases related to massive deployment of connected objects and the Internet of Things. The emergence of parallel, potentially conflicting, specifications developed outside global standardisation bodies must be avoided. -The development of standards for specific needs should be promoted on the basis of experimental evidence, taking advantage of international cooperation and a multi-stakeholder approach. Standards should not overlook potential disruptive use cases (e.g. meshed connectivity). -The standards must address the future evolution of the overall network architecture and need for "flexibility", in particular in response to new use cases arising in key industrial sectors. These aspects require due consideration for open innovation and opportunities for start-ups. Member States and industry should therefore endorse, and promote, a comprehensive and inclusive approach to 5G standardisation. Action 5 — The Commission calls on Member States and the industry to commit to the following objectives regarding the standardisation approach: -Ensure the availability of the initial global 5G standards by the end of 2019 at the latest, so as to enable a timely commercial launch of 5G, and paving the way for a wide range of future connectivity scenarios beyond ultra-fast broadband. -Promote efforts to support a holistic standardisation approach encompassing both radio access and core network challenges, including due consideration for disruptive use cases and open innovation. -Establish appropriate cross-industry partnerships, by the end of 2017, to support the timely definition of standards backed by industrial user experiments, including through the leveraging of international cooperation partnerships, in particular for the digitisation of industry. 3.5.5G innovation in support of growth