- On 23 February the Government authorised Red.es to grant €20 million in aid for two private-sector 5G pilot projects.
- The pilots must support first deployments, experiment with network management and develop use cases with users.
- Companies with connectivity or internet-of-things projects can follow the call, which will be published in the BOE.
On 23 February 2018 the Council of Ministers authorised Red.es, a public body under the Ministry of Energy, Tourism and Digital Agenda, to grant aid worth twenty million euros to boost two 5G technology pilot projects carried out by the private sector. They fall under the National 5G Plan and the National Smart Territories Plan.
The news coincides with the week of the Mobile World Congress, which opens this Monday in Barcelona and is the world’s main showcase for mobile telephony. The call, to be published later in the BOE, is aimed at companies and seeks to speed up the arrival of a technology considered key to the next generation of digital services.
What 5G promises
The fifth generation of mobile telephony pursues three improvements. The first is very high-speed, high-capacity mobile broadband. The second is ultra-reliable, low-latency communications, that is, with an almost immediate response, needed for applications such as remote surgery or the connected vehicle. The third is massive machine-to-machine communication, which allows thousands of sensors to be connected.
Not all will be available at the same time or with the same maturity. The first deployments will probably be broadband, while the most demanding industrial applications will take longer. That is why pilot projects are a way to test in real settings what works, for whom and at what cost. That difference in pace explains why operators and equipment makers prefer to test first in limited projects with real users before committing large investments across the whole network.
The role of the pilots
Projects submitted must support the first 5G network deployments, experiment with the network management techniques the technology allows and develop use cases with the involvement of all players, including users. The Government thereby seeks to foster early demand and create ecosystems among operators, technology providers and companies. Operators and technology companies have been testing preliminary versions of 5G in several countries for some time, and the results of those tests help decide in which use cases it pays to invest and in which it is better to wait.
The experience gained will also help the administration understand how to use frequencies efficiently and what obstacles there are in deployments, information that can guide future regulatory decisions. For the private sector, it is an opportunity to test solutions with public support. The aim is also to build know-how in Spain: when a new technology is tested in the country, local companies have the chance to train teams and take part in the value chain from the start.
What to review
Companies interested in advanced connectivity, logistics, connected industry or smart cities can assess whether they fit the call’s objectives and with which partners they could apply. The rules should be read carefully when published: requirements, deadlines, aid percentages and justification obligations.
For other companies, the practical course is to follow the technology’s progress without rushing. Not every company needs 5G, and current connections may be enough. An assessment of real connectivity needs avoids investing too early. This information is general; consult your adviser. If participation is considered, it is advisable to form a consortium with complementary partners, such as an operator, a technology provider and an end user, and to prepare the project’s technical and financial plan in advance.
Before investing in the technology of the future, know what each company needs today.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
