The Belgian Minister for Digital Agenda Alexander De Croo wants to a fourth network operator to compete on the Belgian mobile market. The minister is calling for the 4G and 5G license auction next year to make way for this. The mobile market is currently divided between Orange, Proximus and Telenet. Countries with four mobile networks have lower prices for mobile data, higher data usage and more investments, the minister said in a news report.
A new spectrum auction will take place in the spring of 2019. In addition to the existing mobile frequencies whose licenses expire in March 2021 (900, 1800 and 2600 MHz bands), new frequencies will also be auctioned, mainly for the use of 5G from 2020 (700, 1400, 3600 MHz bands).
Minister De Croo wants to use the license auction to allow a fourth mobile network in the country. This would be done by reserving a certain part of the spectrum for the newcomer.
Mobile data use lower than in other EU countries
De Croo: "Belgium scores extremely low in terms of mobile data use. At the same time, prices for mobile data are much higher than in other countries. By creating space for a new, fourth mobile network, we will ensure extra investments, stronger price competition and lower prices for the consumer."
De Croo sees a unique opportunity to reshape the Belgian market through a combination of factors:
- The new licenses will have a term of 20 years.
- There is a technology shift coming, from 4G to 5G. A new operator can immediately start building a new 5G network; this will encourage other operators to quickly roll out 5G as well.
- The new market analysis of telecom regulator BIPT also allows a fourth player not only to expand a mobile network, but also to gain access to cable and fiber at a reasonable price.
The spectrum auction is expected to bring in EUR 700 million. The Belgian government wants to use part of the proceeds to reduce the country’s national debt, with the rest going to budget needs.
Fourth MNO in a 3G era
The rollout of a fourth mobile network is a political wish with a history. A fourth license had already been available at the UMTS auction; it was not sold however. The Belgian government developed a legal regulation whereby existing operators had to relinquish part of their 900 and 1800 spectrum. The fourth operator could then launch in three frequency bands.
Telenet was the daring candidate for that role for a long time. That changed, however, when BIPT decided to open the cable in Flanders via a market analysis. Telenet then renounced its own network, but became MVNO on the Mobistar network, now Orange Belgium. Base (KPN Belgium) was later taken over. Telenet now has its own mobile network.
