Pricing Private LTE and 5G Radio Licenses on 3.5 GHz

The interest in private LTE and private 5G radio licenses is increasing along the IMT frequency bands, higher frequencies, new spectrum assignments, and demand for wireless industrial communication. This paper studies the private LTE and 5G license pricing using Finland as an example. The methods for pricing are the actual block license-based frequency fee pricing, Administrative Incentive Pricing (AIP), device based Private Mobile Radio pricing, and the device-based pricing of the Netherlands. The study shows that the selection of the pricing mechanism greatly impacts the license prices. Spectrum policy and regulation can be the trigger for novel private network ecosystem creation through creation of simple authorization processes to reduce the cost and minimize the complexity of use of spectrum for private LTE. In particular, provision of clear rules and guidance for spectrum valuation and pricing for the national regulator itself, as well as for the stakeholders wanting to supply and operate private LTE was found essential in reducing the cost and minimizing the complexity of private LTE spectrum use.