5G Strategy Austria's way to become a 5G pioneer in Europe - Accelerating the rollout of 5G mobile technology with optimised framework conditions ...
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5G Strategy Austria‘s way to become a 5G pioneer in Europe Accelerating the rollout of 5G mobile technology with optimised framework conditions. Seizing opportunities for citizens, the economy, industry and science.
5G Strategy - An Initiative of the Austrian Government Imprint Publisher bmvit – Federal Ministry for Transport, Innovation and Technology Radetzkystraße 2, 1030 Vienna, Austria www.bmvit.gv.at infothek.bmvit.gv.at Layout bmvit Photos/images bmvit, BMDW, BMF Print Vienna, April 2018, 1st Edition 2
5G Strategy - An Initiative of the Austrian Government
Content
Executive Summary_____________________________________________________________________ 4
Assignment___________________________________________________________________________ 5
Objective_____________________________________________________________________________ 5
Opportunities of Digitisation - Shaping the Infrastructure of the Future____________________________ 7
Initial Situation_______________________________________________________________________ 11
Action Fields for concrete Measures_______________________________________________________ 16
I. Infrastructure_________________________________________________________________ 16
II. Applications__________________________________________________________________ 25
Implementation Plan Infrastructure________________________________________________________ 35
Implementation Plan Applications_________________________________________________________ 37
Glossary_____________________________________________________________________________ 38
35G Strategy - An Initiative of the Austrian Government
Executive Summary
This present strategy aims at achieving the rollout of the 5G mobile communications
standard with optimised framework conditions, and aims at harnessing the associated
opportunities for citizens, the economy, industry and science.
In the course of a broadly-based stakeholder survey, specific measures in the action
fields of infrastructure and applications have been developed in order to create
optimised framework conditions.
In concrete terms, 24 out of the 34 measures dealing with the action fields of
infrastructure and applications serve to facilitate and to significantly reduce the 24 specific measures serve
costs of upgrading the digital infrastructure. The remaining ten measures take to expand the digital
advantage of the technical possibilities and the potential of 5G for the economy infrastructure in a facilitated
and society by supporting the timely development of 5G services and applications. and significantly more cost-
Among other things, targeted funding programmes, innovation co-operations, test effective manner.
environments and innovation-friendly public procurement (IÖB) will be used to advance
these applications.
The Austrian government intends to accomplish the following goals:
Phase 1: Implement the first pre-commercial 5G trial installations by mid-2018.
Phase 2: Achieve the interim goal of an almost nationwide availability of the ultra-
fast broadband network (100 Mbit/s) by the end of 2020. This will create the basis for Innovative service and
a nationwide 5G expansion. The rollout of 5G in all provincial capitals is planned to applications enable the economy
ensue at the same time. and society to benefit from the
5G potentials.
Phase 3: Aim to bring 5G service availability to main traffic routes by the end of
2023; accomplish virtually nationwide 5G availability by the end of 2025.
Phase 1 Phase 3
Mid 2018: End 2025:
First pre-commercial 5G Virtual nationwide 5G
trial installations availability
5G 1 2 3
Strategy
Phase 2
End 2020:
Virtual nationwide
availability of ultra-fast
broadband and 5G rollout
Figure 1: Planned timeline of 5G rollout (Source: bmvit)
45G Strategy - An Initiative of the Austrian Government
Assignment
By announcing the “5G for Europe: An Action Plan” in September 2016, the European
Commission invited the Member States to develop national 5G strategies as part of
national broadband roadmaps. Expert groups together with relevant stakeholders
identified key problem areas, developed concrete actions and recommendations for
implementation as well as prioritisation, and submitted their paper to the Austrian
government for the planned implementation. Expert groups developed
specific measures for a rapid
The present strategy highlights Austria‘s path to a gigabit society, and in particular 5G rollout.
the introduction of 5G mobile technology. Specific measures were established within
the two main action fields of infrastructure and applications, including a description
of those responsible for the implementation.
The 5G strategy thus creates a framework for the development until the end of 2025
– because by then the Austrian Government expects to have a 5G network available
nationwide.
Objective
Austria will only succeed in global competition if the applications and the services
developed with new key technologies are available to almost everyone in the country,
and every single person has the possibility to actively participate in digitisation.
Austria is a country with a high wage level and can only expand as an industry Austria develops into Europe’s
location through innovation and technology, and by that very fact, it will be able leading 5G nation.
to maintain its competitiveness. For this purpose, a modern and powerful digital
infrastructure is needed. Nationwide 5G coverage is crucial for the country’s future
economic development, which is not least due to the vast number and the geographic
distribution of successful SMEs (small and medium enterprises). Austria has the goal
to become a 5G pioneer in Europe and to be ranked among the top 3 digitisation
countries within the EU, and among the top 10 countries worldwide.
The present strategy intends to facilitate the 5G rollout with optimised framework
conditions, and to harness the associated opportunities for citizens, the economy,
industry and science.
55G Strategy - An Initiative of the Austrian Government
The present strategy pursues the following objectives:
Phase 1: Implement the first pre-commercial 5G trial installations by mid-2018.
Phase 2: Achieve the interim goal of an almost nationwide availability of the ultra-
fast broadband network (100 Mbit/s) by the end of 2020. This will create the basis for
a nationwide 5G expansion. The rollout of 5G in all provincial capitals is planned to
ensue at the same time.
Phase 3: Aim to bring 5G service availability to main traffic routes by the end of
2023; accomplish virtually nationwide 5G availability by the end of 2025.
Phase 1 Phase 3
Mid 2018: End 2025:
First pre-commercial 5G Virtual nationwide 5G
trial installations availability
5G 1 2 3
Strategy
Phase 2
End 2020:
Virtual nationwide
availability of ultra-fast
broadband and 5G rollout
Figure 2: Planned timeline of 5G rollout (Source: bmvit)
65G Strategy - An Initiative of the Austrian Government
Opportunities of Digitisation -
Shaping the Infrastructure of the Future
More innovation, more prosperity, more social security: 5G is the key to the digital
world – and thus to Austria‘s future success story.
The level of a country’s
Digitisation opens up a new chapter in the history of technological, economic and digitisation has a major
social change. Even to date, new technologies have given us new scope for action: impact on economic and social
They have made our lives easier and better. They have changed and advanced how we prosperity.
view the world. They have helped to bring about a broad level of affluence and social
security through the power of innovation and economic dynamics.
From vision to reality
Digitisation promises significant development impetus in many areas of everyday life
and the economy:
-- Automated mobility reduces congestion, emissions and traffic accidents.
-- Digital factories produce much easier, faster and more reliable – beyond that,
the importance of location has also become secondary. With that, Austria is of
interest again to sectors that have shifted their production activities abroad.
-- Digitisation enables a „smart“, climate-friendly energy system, allowing you to
be a consumer as well as a producer.
-- The healthcare system is becoming better and more efficient through digital
solutions.
-- New diagnostic possibilities or medical monitoring in your private home promote
life expectancy and quality of life.
-- Digitisation in education allows learning independent of time and place – the
potentials of lifelong learning are becoming reality.
-- Digitisation improves many processes in public administration to simplify citizen
access to public services.
Full computerisation in the manufacturing sector (Industry 4.0), the widespread use
of Big Data and Artificial Intelligence (AI) or „Internet of Things“ (IoT) applications
incorporated into our world are often still ideas in the making and future scenarios.
There are many ideas and concepts out there waiting to be turned into action.
75G Strategy - An Initiative of the Austrian Government
5G is the key
Austria is still lacking the infrastructural „key“ to the new digital worlds: A powerful
IT infrastructure that makes ubiquitous computing and the transmission of large
amounts of data possible. This needs an extremely high-performance mobile network
along with the broadband infrastructure: Besides mobile devices for consumers like
smartphones and tablets, enormous amounts of data will be communicated in the 5G has the potential as a
future by vehicles, household appliances and industrial plants. This type of network disruptive factor in digital
poses entirely new challenges in terms of the capacity, security and quality of technology to accelerate
wireless-based mobile connectivity. processes.
The 5G standard is the gateway to the digital future worlds. It is the key to
Industry 4.0, autonomous mobility, smart cities and smart villages, comprehensive
cybersecurity, cutting edge education or to the Internet of Things. This becomes
also clear by a technical comparison: Compared to today‘s standards, 5G will have a
capacity that is 1,000 times higher, a connection density of minimum 100 times, peak
data rates of up to 10 Gbit/s and an energy efficiency that increases by a factor of
ten. This highlights the disruptive character of a tightly knit digital high-performance
network as revolutionary technology.
Austria in the lead
Austria has chosen to not only follow 5G expansion on the spectator’s bench while
other countries develop their digital infrastructure to top standard, but to play a
pioneering role when it comes to 5G. The present 5G strategy provides an optimised
general framework for achieving this ambitious goal.
With the national 5G strategy, the Austrian government has produced a concrete
work programme and a timetable for key action areas, designed to implement the 5G
standard in Austria as quickly as possible and throughout the country. International
comparison reveals that through the implementation of this 5G strategy, Austria has
considerable chances on grounds of its excellent preconditions to develop innovation
and business models. They will determine the future, and by that, also have the
capacity to set international standards.
Getting actively involved in digitisation
The support of research and development, in particular in the fields of Big Data,
Artificial Intelligence and the Internet of Things, is building momentum for
innovation which is vital for mobility, production, agriculture, logistics, the service
sector, the energy sector, healthcare, education and the media industry. The next
wave of digitisation promises enormous growth potential especially in these areas. Excellent framework conditions
are the foundation for the
The Austrian 5G strategy sees itself as a responsible instrument for shaping digital development of innovative
change and the inherent opportunities. Digitisation is not a no-brainer. In order to services and applications.
exploit positive effects and master the challenges of the digital transformation, a
future-oriented general framework for a digital transformation is indispensable.
85G Strategy - An Initiative of the Austrian Government
Digital innovative strength makes all the difference
Only as a strong competitive leader in digital innovation, Austria will be able to
maintain its economic and social model and to ensure equal opportunities and social
security through innovative, productive companies and high-quality jobs in the
future. Digital infrastructure is a fundamental backbone for the future development
of the country, also with regard to public service and retirement savings in Austria.
New chapter of Austria’s success story
There is no doubt that digital transformation is not a loss-making business but a
success story for Austria and Europe: Up to a quarter of economic growth and up
to 40 percent increase in productivity in the European Union are attributed to the
use of information and communication technologies (ICT). The Austrian Institute of
Economic Research (WIFO) has detected very positive effects of the ICT infrastructure
on local employment growth.1 It is therefore all the more important that Austria
takes on a leading role in the field of 5G infrastructure. The established consulting
firm Arthur D. Little estimated that a 5G pioneering role can lead to an annual
increase in the GDP of approximately one percentage point and to 35,000 additional
jobs in Austria.2 Austria cannot and should not miss these opportunities. The 5G
strategy is the key to unlock the potential of digitisation and to open up a new
chapter of Austria’s success story.
1994 2001 2010 2020
t/s
bi
t/s
M
t/s
t/s
bi
0
bi
5G
M
00
bi
M
4G
M
40
.
3G
10
0
15
24
2G
0,
Figure 3: Data rate trends in mobile communications (Source: bmvit)
In the past, a company’s decision on site selection was greatly influenced by factors
such as traffic conditions, demand potential, business premises or the competitive
situation. In a globalised, fully networked world, these factors are becoming less
important.
In order to succeed in an international competitive environment and to promote
economic growth and accordingly future jobs and added value, a modern framework
is needed that is able to meet these new challenges. For Austria’s provinces and the
companies and citizens there, it is rather important to expand access to international
sales markets and secure them in the long term. Broadband infrastructure is
important and essential here.
1
WIFO, Österreich im Wandel der Digitalisierung (2016), p. 102
2
Arthur D. Little, Österreich als 5G-Vorreiter (2017), p. 10
95G Strategy - An Initiative of the Austrian Government
5G as the digitisation’s disruptive factor has the potential to accelerate processes.
Especially since international comparison reveals that these possibilities have
already been recognised on a global level, and preparatory work for a successful
implementation is underway in many countries.
With a swift 5G rollout in Austria, it is possible to craft optimal framework conditions
for the development of modern services early on. The development of successful
digital products and services is often founded on research and innovation.
Research and development activities that draw on Big Data methods and Artificial
Intelligence and aim at the development of innovative applications in the area of
the Internet of Things should be bolstered accordingly. This is in the interest and
for the benefit of vertical sectors in particular (mobility, production, agriculture,
service sector, energy sector, healthcare, education, the media industry and logistics), The next wave of digitisation
where the next wave of digitisation is forthcoming and where we see tremendous is approaching the vertical
growth potential. Besides research and development, shaping the political and legal business sectors.
framework is one of the most important requirements for the development of new
digital fields of application. Within the field of infrastructure, fixed and mobile
technologies are more and more seen as complementary.3 Therefore, the expansion of
fibre-optic networks, which is already happening as part of the broadband initiative,
provides the groundwork for the future 5G rollout.
3
WIK/WIFO, Evaluierung der Breitbandinitiative (2017), p. 139
105G Strategy - An Initiative of the Austrian Government
Initial Situation
New digital technologies like 5G and their possible uses and applications are
revolutionising our society in every area of our lives. The race for the leading positions
in digitisation is already underway. Companies, countries, regions and municipalities
must respond fast in order not to be left behind. The key questions are: How can
Austria best benefit from this digital transformation, be successful in an international
competitive environment, and become a leading 5G pilot country in Europe? Austria ranks mid-table in the
European context in terms
The European Union has defined the significance of 5G high performance networks of digitisation. In terms of
as an important tool for Europe in order to compete globally. The concrete objectives availableness of fiber optics,
of the „5G for Europe“ action plan are improved coordination between national Austria still needs to catch up.
approaches in connection with the rollout of 5G networks, the acceleration of
investment in 5G networks, and the implementation of standards.4
Austria is well-positioned and ranks above the European average in terms of its level
of digitisation and availableness of fixed and mobile digital infrastructures. “Digital
administration” in Austria is also well developed. Yet compared to other countries,
Austria lags behind in particular with regard to the availability of fiber-optic networks.
In the Global Information Technology Report, published annually, the World Economic
Forum studies 139 economies worldwide with regard to their Networked Readiness
Index (NRI). Austria ranked 20th in the world in 2016, and 11th within Europe.5
4
http://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX%3A52016DC0588
5
World Economic Forum Networked Readiness Index 2016
http://reports.weforum.org/global-information-technology-report-2016/networked-readiness-index/
115G Strategy - An Initiative of the Austrian Government
Singapur
Finland
Sweden
Norway
USA
Netherlands
Switzerland
Great Britain
Luxembourg
Japan
Denmark
Korea
Germany
Iceland
Austria
Israel
Estonia
Belgium
France
Ireland
Lithuania
Portugal
Latvia
Malta
Spain
Czech Republic
Slovenia
Cyprus
Russia
Poland
Italy
Slovakia
Hungary
Croatia
China
Romania
Bulgaria
Greece
0 1 2 3 4 5 6
Figure 4: Excerpt of best countries in the World Economic Forum Networked Readiness Index 2016
http://reports.weforum.org/global-information-technology-report-2016/networked-readiness-index
The European Union, too, compares the expansion of digitisation in Europe in a
separate ranking (DESI - Digital Economy and Society Index).6 While Austria remains
among Europe’s top countries in terms of mobile Internet use, its fixed digital
infrastructure is clearly below the European average. The Scandinavian countries are
the leaders of digitisation in Europe, headed by Denmark. Austria ranks 10 out of 28 EU
Member States in the 2017 DESI ranking, thus positioned in the upper middle range.
6
EC European Scoreboard 2017: https://ec.europa.eu/digital-single-market/en/scoreboard
125G Strategy - An Initiative of the Austrian Government
80
70
60
50
40
30
Digital public services
20
Level of development of digital technology
Online use
10
Internet competencies
Connectivity
0
Denmark
Finland
Sweden
Netherlands
Luxembourg
Belgium
Great Britain
Ireland
Estonia
Austria
Germany
Malta
Lithuania
Spain
Portugal
EU28
France
Slovenia
Czech Republic
Latvia
Slovakia
Hungary
Cyprus
Poland
Croatia
Italy
Greece
Bulgaria
Rumania
Figure 5: Europe‘s digitisation as measured by the DESI Index https://ec.europa.eu/digital-single-market/en/desi
Austria’s fast broadband connections with at least 30 Mbit/s is currently 24 percent
(EU average: 37 percent), with Belgium taking the lead with 81 percent. In terms of
ultra-fast broadband connections with a bandwidth of at least 100 Mbit/s, Austria
ranks 24 out of the 28 EU Member States with just 4.0 percent, far below the EU
average of 16 percent.7
Only 7 percent of all households in Austria have access to fiber-optic connection
(fiber-to-the-home / FTTH). Although Austria is still a little ahead of Germany (6.6
percent), Italy (4.5 percent) and Great Britain (1.4 percent), it clearly ranks below the
EU average of 21 percent.8 This gap becomes all the more prominent considering that
network coverage in nine EU countries is already more than 50 percent, and in three
countries more than 75 percent. Fiber connecting 5G base stations is one of the vital
requirements for the future 5G expansion.9 These optical connections linking existing
and new transmitters are already supported by the “broadband billion” plan.
Austria‘s leading position in digital public services is a positive highlight. Austria
ranks here fifth in the DESI sub-index for digital public services; that is well above EU
average. Estonia is leading.
7
EC European Scoreboard 2017 https://ec.europa.eu/digital-single-market/en/scoreboard
8
EU: Broadband Coverage in Europe 2015
9
WIK/WIFO, Evaluierung der Breitbandinitiative (2017), p. 119
135G Strategy - An Initiative of the Austrian Government
100
80
60
40
20
0
Estonia
Finland
Netherlands
Denmark
Austria
Spain
Ireland
Sweden
France
Portugal
Lithuania
Malta
Belgium
EU28
Polen
Latvia
Slovenia
Cyprus
Great Britain
Luxembourg
Germany
Italy
Czech Republic
Slovakia
Greece
Bulgaria
Croatia
Hungary
Rumania
Figure 6: Digital public services in comparison as presented by the DESI-Index https://ec.europa.eu/digital-single-market/en/desi
In matters of education, in particular Internet literacy, Austria is in a good position as
shown in the in the European comparison chart. However, compared to other countries,
academic and non-academic research on 5G is still underdeveloped. The United
Kingdom has its own 5G university, while other countries feature several dedicated 5G
institutes at universities or professorships.
A global comparison across all studies reveals a lack of investments in infrastructure
in Austria, especially in rural areas. According to a WIFO study, Austria comes
last compared to 20 other industrialised countries in terms of investments in the
telecommunications sector.10 The investment ratio relative to GDP was 0.23 percent in
the years 2005 to 2013. This is barely half the average of all countries compared (0.47
percent). However, with the funds from the “broadband billion” plan, investments have
advanced significantly in 2015-2017.
In addition to the ”broadband billion” subsidies, the municipal investment programme
for the years 2017 and 2018 has set aside a total of 175 million Euros in grant-in-aid for
municipalities to support for examples measures related to the nationwide expansion of
broadband data networks.
As the above figures show, Austria is not in a bad situation when it comes to gaining
a leading position in regards to 5G. However, for a leading role, powerful initiatives
are needed which we propose in this 5G strategy.
10
WIFO, Österreich 2025: Hebel zur Förderung von Investitionen in Breitbanddatennetze (2016)
145G Strategy - An Initiative of the Austrian Government
In the following overview we summarise global developments and 5G initiatives in
countries that wish to take on a leading role in 5G:
Overview of global 5G developments
China
A few years ago, China established the „5G Promotion Group“, where telecommunications
companies, ICT companies, universities, and research institutes are working together to
develop 5G. China aims at taking the lead in 5G technology as well as in 5G network
expansion (nationwide rollout of 5G is planned for 2020). China is also actively involved
in 5G standardisation.
South Korea
South Korea is one of the 5G pioneers and has already kicked off a 5G test network
at the 2018 Winter Olympics in Pyeongchang. 5G initiatives have been launched
including several successful 5G field trials since 2013. Also South Korea expects its
commercial launch of 5G in 2020.
Japan
A 5G test network in the Tokyo area went live in 2017 with the goal of testing the live
performance of 5G. Japan plans to have a nationwide 5G network in operation by 2020
in time for the Summer Olympics.
USA
The four major US telecommunications companies together with ICT companies are
actively contributing to 5G standardisation. In addition, the government launched
a research initiative a year ago and the US regulator FCC is already offering 5G test
frequencies. Also the US anticipates its commercial launch of 5G in 2020.
Sweden
Sweden is one of the 5G pioneers in Europe. Several successful field trials are taking
place and Stockholm is expected to be the first European capital that will get a 5G test
network in 2018.
Germany
The German government adopted a 5G strategy in 2016 and has set up a 5G dialogue
forum that connects research, telecommunications companies and industry partners.
Germany intends to become a global leader in particular for 5G applications and has
already successfully rolled out test sites for autonomous driving on the motorways (for
example, A8 near Munich). In August 2007, Vodafone Germany in cooperation with the
University of Aachen opened the world‘s first 5G test centre in Aldenhoven in Germany.
Also, the first real Digital City is being built in Darmstadt following a “Beauty Contest”
in Germany staged by the German IT trade association BITKOM.
155G Strategy - An Initiative of the Austrian Government
Action Fields for concrete Measures
The 5G rollout will depend particularly on preconditions such as existing and
available infrastructure, a positive investment and innovation climate, and of course
the demand for services and applications. The following requirements are a priority
for successfully achieving the goals:
a. Investment-friendly climate for new technologies It requires the creation of
b. Fibre-optic infrastructure available and accessible nationwide a positive investment and
c. Availability of significant amount of new spectrum innovation climate.
d. Demand for digital technologies and applications
e. New digital value chains and business models
f. 5G-compatible network components and devices
Essentially, the activities are divided into two segments in which specific measures
have been developed:
I. Infrastructure
II. Applications
I. Infrastructure
The digital infrastructure as the connecting basis is the nervous system of the digital
society and indispensable for a high-performance, functional business location. The
development and distribution of digital applications, products and services in society
and business requires high-performance, nationwide broadband infrastructure. Digital Infrastructure is the basis
Creating infrastructural prerequisites for sustainable broadband and implementation of an efficient and functional
of a 5G network is a major challenge for all parties involved, but can also be an business location.
opportunity. Since 5G technology is being introduced worldwide, it is important to
create a framework in Austria to make expansion efficient and cost-effective. An
investment-friendly climate can, on the one hand, promote investment in networks
and, on the other hand, create opportunities for developers and users to use 5G
technology to establish internationally successful services and applications at an
early stage.
As part of the stakeholder survey, several action fields were identified that are
considered particularly important for expanding the infrastructure of 5G networks.
The central goal is to advance the 5G rollout timely and comprehensively by
advancing 5G readiness, so that Austria can play a pioneering role compared to
the rest of the world. As this requires significant investment, this goal can only
be achieved if the costs of expansion are significantly reduced and administrative
processes are accelerated.
165G Strategy - An Initiative of the Austrian Government
Since frequencies are scarce resources for the 5G rollout, and high bandwidths
are only possible through a significant increase of the amount of useful frequency
spectrum, it is necessary to provide sufficient frequency bands for 5G testing and, in
accordance with international agreements, make available additional frequency bands
for regular operation and define their allocation modalities. Particular efforts should
be made to ensure long-term planning security for stakeholders, to actually use the
allocated frequencies, and to support any requirements of the broadband strategy,
particularly in terms of coverage. 5G requires significantly more
transmitter sites in Austria.
With regard to the densification of base station sites required by using higher
frequency ranges (which allow shorter ranges) and the objective of getting all
people in Austria to participate in digitisation, a significant increase in the number
of required new locations can be expected. These will be so-called small cells (small
transmitters) that are significantly smaller than previous mobile radio antennas.
These sites are predominantly connected by optic fibre and will be located closer
to the end users in densely populated areas. Therefore, the aim is to speed up the
introduction of 5G in financial, procedural and organisational terms to stimulate
investment in Austria.
Ensuring the widest possible coverage of 5G requires, in particular, the continuation
and further development of the subsidy system, to create more incentives for
investment in fibre optic expansion - even in less densely populated areas and/or Optimal framework conditions
areas with lower traffic volumes. support the introduction of 5G.
Optimal framework conditions for digitisation as a whole can further support the
realisation of the introduction of 5G. As digitisation as a cross-cutting element, and
in particular 5G as a disruptive technology, will penetrate all areas of life, the effect
of legislative measures on digitisation and therefore on broadband and 5G in all
spheres of life must be taken into account.
In particular, the management of the radio spectrum resources must also take into
account the lower demand for individual radio spectrum resources when shifting
communication applications to 5G platforms.
Frequencies
a. Allocation
Timely allocation of frequencies in line with European requirements
Owing to the predictable, exponentially increasing mobile data consumption because
of increasing transmission capacities in the 5G networks, data transmission over the
last mile, i.e. the mobile access network, urgently requires additional frequencies. These
should be made available timely to the market and orientated towards the pioneers in
Europe.
Awarding frequencies in the 700 MHz, 1500 MHz, 2100 MHz and 3.4-3.8 GHz bands
are scheduled for this year and next year. Moreover, additional frequency bands for
5G are already identified on international level. As soon as there is clarity about the
availability of such additional bands, an updated version of the Spectrum Release
Plan should be prepared. Austria will make these bands available as soon as possible.
175G Strategy - An Initiative of the Austrian Government
The primary goal of the allocations is therefore to achieve an efficient use of
spectrum, innovation, competition, legal certainty, connectivity and rapid nationwide
coverage for the population and economy with high-quality communication
infrastructure. The Federal Government is also expressly committed to a strategic and
innovation-friendly objective of frequency tenders, and therefore to economically
justifiable auction designs. It is not the intention of awarding procedures to maximise The exponential increase in
revenue from auctions. These points should be defined within the framework of the TKG. data usage urgently requires
additional frequencies.
When defining the rules for determining the highest bids, the regulatory authority
must take into account appropriate transparency and predictability, keeping in mind
the award objectives and the legal requirements.
In order to further increase the predictability for participants in the entire
award procedure, the tender document should already contain concrete rules for
determining the highest bids.
Action: Timely allocation of frequencies in line with European requirements
Creating legal certainty in the allocation of frequencies
In order to provide the necessary legal certainty for the frequency allocation
procedure in the 700 MHz band, which is due next year, existing broadcasting
allocations should be modified, i.e. license durations should be shortened. This
interference with existing rights leads to a financially quantifiable migration burden
for the parties concerned.
This burden, which demonstrably results from the conversion, should be refunded to
the users concerned, otherwise legal remedies may be taken against the amendments
which could lead to legal uncertainty and influence the allocation. For example, there
could be significant delays in the allocation/use of a subsequent allocation or by the
initiation of appeal procedures, which would negatively affect the roll-out.
In order to provide a legal basis for this, an amendment of the KommAustria Act
(KOG) should be submitted for review in parallel with the amendment of the
Telecommunications Act. The timely decision on this is mandatory as a measure
to legally secure allocation of the frequencies in the 700 MHz range for mobile
communications and is expected to be implemented before the tender procedure is
launched.
Action: Creation of legal certainty in the allocation of frequencies
Mandatory consultation prior to frequency auctions
Frequencies are a scarce public resource and should therefore be awarded according
to the principles of transparency, non-discrimination and proportionality. The auction
process is a suitable method to determine the value of this scarce resource in the
field of conflict between supply and demand.
To involve companies early on and therefore ensure better planning security, the The planning reliability should
involvement of operators in the form of mandatory consultation should be established be improved by involving
by law before the tender is published. companies early on in the
tendering process.
Action: Mandatory consultation prior to frequency auctions
185G Strategy - An Initiative of the Austrian Government
Allocation of test frequencies
To test new transmission systems as well as related services and applications under
real conditions, authorisations for using suitable 5G frequency bands are required.
Appropriate test frequencies in the required range should be made available promptly,
subject to availability in line with exceptional authorisations in terms of § 4 of the
Austrian Telecommunications Act (TKG 2003).
Action: Allocation of test frequencies
b. Use
License duration of frequencies
When essential parts of a company‘s frequency assignments expire, a massive cut
in the supply of telecommunications services may arise. This can lead to serious
economic damage.
To prevent a potential supply interruption, the regulatory authority should be licensed
to implement a temporary allocation of frequencies by means of a mandate notice.
However, such a mandate notice should only be intended as a transitional measure
to the regular award, and should therefore be limited accordingly. Such a provision
should be included in the next amendment of the TKG.
Making frequency use more
Action: License duration of frequencies flexible / frequency sharing.
Flexible frequency use/frequency sharing
Frequencies suitable for providing communication services are a scarce resource.
Usage rights are usually granted for a very long period to ensure investment security.
The intensity of use as well as the demand may vary over time. In addition, the
planned expansion may be delayed owing to changed economic conditions, or be
limited to certain regions owing to the physical characteristics of the frequencies.
If holders of spectrum usage rights do not use the allocated frequencies for a
foreseeable time (in certain areas), those frequencies could be made available to
third parties for a specific time in order to make better use of the scarce „frequency”
resource. Especially in rural areas, frequencies can be used temporarily through
sharing models.
Legislative changes to the TKG should allow authorities to enable spectrum-sharing
models to use the scarce frequency resource more efficiently
Action: Making frequency use more flexible / frequency sharing
Infrastructure sharing and frequency pooling
The deployment of 5G mobile networks raises the issue of sharing infrastructure
elements to reduce the cost of roll-out. However, flexibility in this field is always
in conflict with competition considerations, as intensive cooperation can lead to
reduced competition (through adjustments to services, pricing and coverage areas).
In 2011, the Telekom Control Commission (TKK) published a position paper on
195G Strategy - An Initiative of the Austrian Government
infrastructure sharing in mobile networks, in which the framework conditions for the
sharing of infrastructure elements were defined. This position paper is characterised
by the then imminent merger in the mobile sector.
Owing to changing market conditions and the challenges associated with the
deployment or development of 5G networks, an evaluation of the position at that
time, taking into account the objectives of nationwide broadband coverage, would be The sharing of infrastructure
carried out until the frequencies in the 3.4-3.8 GHz range are put out to tender. The elements needs to be re-
aim is to facilitate the sharing of infrastructure elements. evaluated with respect to 5G.
However, any cooperation in this regard is also subject to review by the general
competition authority, therefore a position paper cannot be a final assessment.
Action: Infrastructure sharing versus frequency pooling
Coverage obligations in frequency allocation decisions
In the allocation of frequencies, requirements relating to the use of the allocated
frequencies are also regularly laid down. These must be proportionate, transparent and
non-discriminatory. It is clear from the Authorisation Directive that, inter alia, obligations
in terms of range and quality can be imposed.
The requirements for servicing the public should therefore be designed according to
the technical and economic conditions in line with the general policy objectives of
expanding high-speed networks.
Action: Coverage obligations in frequency allocation decisions Coverage requirements support
the objectives of the 5G strategy.
c. Planning security
Spectrum Release Plan for creating planning and investment security
To create long-term stability in planning and investment security, stakeholders must
be kept abreast of developments in the frequency spectrum early on. For this purpose,
the first Spectrum Release Plan was published by the Regulatory Authority in 2016.
To further improve planning and investment security, this Spectrum Release Plan
should become part of the regulatory concept in future.
Action: Spectrum Release Plan for creating planning and investment security
The planning and investment
security for companies should
be further improved.
205G Strategy - An Initiative of the Austrian Government
Installation and operation
a. Financing
Securing public funds for the expansion of digital infrastructure
The Federal Government is committed to securing the broadband billion and will
secure this in the revised broadband strategy. In addition, future revenues from
frequency auctions will also be used to expand digital infrastructure.
Action: Securing public funds for the expansion of digital infrastructure
Securing the necessary funds for 5G infrastructure roll-out by telecom operators
To achieve this goal, a national commitment is required to stimulate investments of several
billion Euros, primarily by communication service providers. In addition to the engagement A national commitment
by the Federal Government to the broadband billion, a responsibility from telecom is needed to stimulate
operators to secure the necessary investments for 5G implementation in Austria is crucial. infrastructure investment.
The conclusion of a „broadband pact“ by operators with the Federal Government will be
pursued in parallel with the implementation of the TKG amendment.
Action: Securing the necessary funds for 5G roll-out by telecom operators
Notification of point of presence sites by telecommunications companies
The nationwide availability of fibre optics is critical for future 5G expansion, as this
requires a fibre optic connection for 5G base stations. To determine the need for
action and the financial requirements for a nationwide 5G roll-out, the current PoP
locations of mobile and fixed network providers as well as their current connections must
be determined. A corresponding reporting requirement should be included in the TKG.
Action: Notification of point of presence sites by telecommunications companies
b. Fees, taxes, duties
Evaluation of radio frequency usage fees
Currently, the vast majority of mobile base stations are connected via radio relay. The
resulting charges for spectrum use represent a significant cost factor.
Taking into account the technical requirements and objectives in terms of developing
sustainable infrastructure, timely revision of the Telecommunications Fees Ordinance
is required, which aims at a reduction of costs.
Action: Evaluation of radio frequency usage fees for radio-relay systems
215G Strategy - An Initiative of the Austrian Government
Standard rents for antenna sites, associated facilities and technical installations
on land and buildings owned by public authorities
The rents for antennas, associated facilities and technical installations, as well
as their connection and supply, already represent a significant cost factor for the
mobile operators. New, higher-frequency bands will significantly reduce the range
of the radio cells in future. Therefore, a significant densification of transmitter sites
is expected, which must also be developed with powerful connectivity. The financial
burden resulting from this development could adversely affect the implementation The goal is to reduce the costs
of 5G as a further significant cost factor. The evaluation of the broadband initiative of transmission sites.
also proposes the reduction of location costs for new and, where appropriate, existing
sites to increase 5G readiness.
The Federal Government aims to provide state-owned property as a structural
contribution to the accelerated 5G expansion for the deployment of communications
infrastructure and development of transmission sites. In any event, it is necessary to
ensure that no settlements are carried out above normal international standards related
to the deployment of high-performance bandwidth networks and 5G. The significant
densification of broadcasting sites in 5G expansion requires new cost reduction models
that can be achieved through flat-rates and upper limits.
To achieve this objective of an appropriate cost structure in terms of all other
property owned by the Federal Government, the Federal States and Municipalities,
discussions are expected to start in the first half of 2018.
Action: Standard rents for sites of antennas, associated facilities and technical
installations on land and buildings owned by public authorities
c. Expansion of facilitation
Rights to install lines for the erection and connection of smaller transmitters
Rights for installing lines on third-party property to establish and maintain
communication lines for antennas and transmitter sites should be adequately
compensated in accordance with the TKG.
New higher-frequency bands will significantly reduce the range of the radio cells. For
this reason, and because of higher transmission speeds, a significant densification
of transmission sites and therefore increased rights to install and operate lines on
third-party property are expected. It could be beneficial that the right to install and The facilitation of expansion
operate lines on public property, such as roads, footpaths, public places and airspace, projects is of utmost
can be used free of charge and without separate authorisation in accordance with the importance.
provisions of the TKG. The construction of so-called small cells (small-scale terminals)
on public property should be included under the title of the right to install and operate
lines on third-party property in the TKG.
The aim is to facilitate the construction of smaller transmission equipment, which is
central to the development of 5G, to speed up expansion projects.
Action: Rights to install and operate lines on third-party property for the erection
and connection of smaller transmitters
225G Strategy - An Initiative of the Austrian Government
Improved cooperation in the event of work on public property
The rights to install and operate lines on third-party property granted by the TKG are
designed as „yielding rights“, unlike servitudes. As a result, the holder of the right to
install and operate lines on third-party property must stand back, that is to say the
holder must relocate or remove the installation created at his expense if the property
owner requests to freely dispose of his property. A mutual cost reduction is often
possible by mutual consideration during the planning and execution stage.
In order to reach a common understanding of the problem, consultations should
take place simultaneously, with the involvement of in particular ÖBB, ASFINAG,
Federal Forestry, municipalities and representatives of the National Conference of
Representatives and Telecommunications Providers. The goal in this context is better
cooperation.
Action: Improved cooperation in the event of relocations due to works on public property
d. Process
Building communication networks not subject to authorisation
Building codes in most federal states provide for an authorisation requirement to
implement public communications networks. This results in significant effort for the
installers.
In the Lower Austrian Building Act (NÖ. BauG), there is already a corresponding regulation
for establishing of public communication networks without authorisation. According to
§ 17 Z 20 NÖ BauG, „the construction of building facilities in terms of the provision of
public communication networks (physical infrastructures within the meaning of § 4 Z
12a such as distribution boxes, pipes)“ is a „licence-free, notification-free and report-free
project“.
The aim is to anchor such a provision in all building codes of federal states.
Action: Building communication networks not subject to authorisation
Connecting regulatory approval procedures/one-stop-shop
Several authorisations must be obtained for constructing transmitters. Separate
procedures result in significant delays in the actual start of construction. One-stop shop should
lead to the acceleration of
The aim is to combine regulatory approval procedures to speed up infrastructure infrastructure development.
development. Currently, two one-stop-shop pilot projects are being tested in Salzburg
and Burgenland. The aim is to extend these pilot projects throughout Austria.
Action: Connecting regulatory approval procedures/one-stop-shop
235G Strategy - An Initiative of the Austrian Government
e. Shared installation
Mandatory installation of empty ducts during the construction or renewal of
wire-line infrastructure
Due to high civil engineering costs (60 to 80 percent of the total costs for broadband
deployment), the use of synergies enjoys top priority. During the construction or
replacement of general wireline infrastructure, as well as development of new areas
empty ducts should be installed according to the instructions by the Federal Ministry
for Transport, Innovation and Technology (bmvit), so that they can be used to build
communication lines in the future.
The aim is to anchor such a provision in all building codes of federal states.
Action: Mandatory shared installation of empty ducts for the construction or renewal
of wireline infrastructure
Minimising costs through shared use
The shared use of existing infrastructure can also help to minimise costs significantly.
In order to lift synergies, the knowledge about the availability and the possibility of Existing infrastructure should
shared use, also in case of a dispute, is compelling. A unit has been created at the be increasingly shared to reduce
Central Information Office for Infrastructure Data (ZIS) from which operators willing costs.
to expand can obtain information on synergies.
For a general understanding of the possibility of increasing the degree of shared use,
discussions between operators, municipalities, RTR, bmvit, energy supply companies, etc.
should take place to make more use of the ZIS.
Action: Minimising costs through shared use
Evaluation of the Central Information Office for Infrastructure Data
Since the ZIS has only started operations at the beginning of 2017, no empirical
values about achieving the objectives are yet available.
By 2019 at the latest, i.e. two years after the launch of the Central Information Office The possibilities of the
for Infrastructure Data, an evaluation will be carried out to incorporate structured Central Information Office for
improvements and adjustments. Infrastructure Data should be
made increasingly usable.
Action: Evaluation of the Central Information Office for Infrastructure Data
Acceleration of construction projects
The current wording of § 13a (4) TKG could suggest a misinterpretation in that
minimum information on construction projects must be made available at least six
months before the first application for approval. However, compulsory compliance
with the six-month deadline could lead to delays in construction projects.
Since such delays are not intended by the legislature, a clarification should be made
with the next TKG amendment.
Action: Acceleration of construction projects
245G Strategy - An Initiative of the Austrian Government
Innovative installation techniques are published in the planning guide
Newly developed, innovative installation techniques can reduce the cost of
expansion. New ways of minimising costs should be regularly incorporated into the
bmvit planning guide.
Action: Innovative installation techniques are published in the planning guide
f. Promotion
Adaptation of the BBA2020 programme to the 5G requirements Fibre glass networks are a basic
The result of the first phase evaluation of the broadband initiative showed that requirement for a nationwide 5G
Austria can advance its 5G readiness - with respect to the promotion of broadband development.
facilities - with the following two measures:
-- Fibre-optic connection of as many mobile network locations as possible
-- Nationwide development of fibre-optic networks
These were two of the central objectives already during the conceptual planning
phase of the broadband initiative. However, there are additional recommendations
for an optimised achievement of the objectives, which are to be implemented
immediately or in the third phase. Adjustments were already made in particular with
respect to the special guidelines, evaluation manuals and the project processes.
Since the nationwide availability of open fibre-optic networks is the basic requirement
for a comprehensive 5G development, a new broadband infrastructure strategy is
currently being developed for the third phase, which will be presented by the Federal
Government in 2018.
Action: New broadband strategy with the goal to develop a nearly nationwide,
gigabit-compatible infrastructure.
II. Applications
Innovative services and
The full potential of a gigabit society will be able to unfold only in the context of new application generate added-
and innovative business models, models, since infrastructure investments alone, will only value and employment effects in
generate small added-value effects in the long term in developed national economies. In Austria in the long term.
order to be able to use the full potential of the 5G technology, it is now important to design
processes, develop the application areas, connect stakeholders, advance subject matters and
generate ideas in parallel to creating the 5G infrastructure. This bundling of activities should
result in implementation projects and activities that facilitate the broad transfer of 5G.
In a stakeholder survey, some central challenges for 5G applications were identified that
were considered to be especially important to utilise the economic and social potentials
of digitisation. Some of the most important challenges are the adaptation of the legal
framework, data storage as well as research and funding programmes.
255G Strategy - An Initiative of the Austrian Government
Incentive systems are to achieve a broad pull effect so that many companies
(especially SME and start-ups) can use the digitisation potential. Companies that can
utilise the 5G technologies for new business models will also be included as a target
group for incentive systems.
The result of the conducted stakeholder survey showed that the greatest potentials
for Austria lie in „mobility and traffic“. There is also considerable potential with
large economic and social relevance in the interdisciplinary fields of „economy
and industry“, „environment and energy“, „health, care and social“, „politics and
administration“, „education“ and „safety, security and trust“. Within these areas,
there are a number of possible applications that often need to be developed yet. The
potential for some applications are already clear today:
Areas for 5G application
a. Traffic: Cooperative, connected and automated mobility
In an ideal future, there are no more traffic jams on the road, no more accidents
and hardly any emissions because the vehicles act autonomously, communicate
with each other and drive with new engines. This may be a long-term vision for
the future, but there is no doubt that we are facing considerable potential for
improvements in the mobility sectors with new technologies in the years to come. Digital traffic infrastructure
The ever-growing real-time connectivity of people and goods represent an important requires reliable real-time
foundation for the connectivity of traffic companies and for almost all new, future- communication.
proof mobility services. 5G in particular will enable new possibilities in real-time data
communication between several vehicles and between vehicle and infrastructure.
5G here opens up the potential for interaction with other already established
communication technologies (ITS-G5, etc.) as part of a future „digital traffic
infrastructure“ that guarantees real-time services for citizens and considerably
contributes to make traffic safer, more efficient and more environmentally friendly.
A successful interaction of different communication technologies must be ensured
in order to guarantee robust, reliable and safety-critical mobility services. Therefore,
attention must be paid to a successful connection and combination with the existing
digital infrastructure when introducing 5G and developing relevant application
technologies.
In a first phase, safe, connected and automated services and applications for rail
and road must be tested under real conditions. In pilot projects, attention should be
paid to the development of marketable implementations, new business models and
applications, potential for transportation policy and the increase of added value and
competitiveness for the industry partners involved. Automated driving is an important
aspect here in the context of the continuous change of our mobility, which will play
an important role in the development of the future traffic system.
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