5G network frequency band allocation is in turmoil again. Will the country allow spectrum resource auctions?

The recently revised "Radio Management Regulations of the People's Republic of China" will be implemented from December 1, 2016. The revised regulations stipulate that frequency bands used by public mobile communications can be sold through bidding and auction, which means breaking the administrative approval and allocation system of radio management agencies in China. In this way, China's spectrum resource allocation is officially synchronized with the international level, implementing both administrative approval and market allocation. This move is both good and bad. Industry insiders are worried about the imbalance between communication operators, and foreign companies are also eager to move, eyeing this big cake.

Radio frequency is a scarce national resource of great strategic significance and an important carrier for promoting the development of informatization. The "Radio Management Regulations of the People's Republic of China" was first formulated and promulgated on September 11, 1993, when China's mobile communications industry was in its infancy. It played a positive role in ensuring the rational development and utilization of radio frequencies and maintaining the order of radio waves. The revised "Regulations" have added new content. Article 17 of Chapter 3 "Frequency Management" of the "Regulations" reads:

"The use of commercial radio frequencies such as frequencies used by terrestrial public mobile communications may be licensed through bidding or auction in accordance with the relevant laws and administrative regulations.

After the radio management agency determines the successful bidder or buyer through bidding or auction, it shall make a licensing decision and issue a radio frequency use license to the successful bidder or buyer in accordance with the law.

In this way, the Regulations clearly state that spectrum resources can be auctioned, which means that telecom operators with strong financial strength can obtain better spectrum resources to develop their own businesses. In addition, the construction of the next-generation 5G network is imminent, and the 5G spectrum allocation plan has not yet been implemented. Many industry insiders are worried that the revised spectrum auction will make the communication giants even stronger, causing a serious imbalance between the three major domestic communication operators.

On the other hand, it is not only the telecom operators that are rich and powerful. Don't forget the BAT of China's Internet. If they get involved, it will be a major development opportunity, a new Internet wave, and may even change the traditional operating methods of telecom operators.

In addition, the revised Regulations not only reduce and standardize radio administrative approvals, establish a spectrum auction system, but also increase the punishment for "fake base stations" and other illegal and criminal activities such as telecommunications fraud. The upper limit of fines for illegal installation of wireless base stations has been increased from 5,000 yuan to 500,000 yuan. For such illegal radio transmission activities, technical blocking will be implemented, fines will be increased, and the case will be transferred to the public security organs for handling. The new criminal law will also increase the upper limit of sentencing for the crime of disrupting the order of radio communication management to seven years, greatly increasing the cost of illegal crimes and deterring criminal activities.