Ookla Registered Progress in European 5G Networks

Research by Ookla suggests that the 5G sector in Europe could be close to a tipping point in terms of network deployments and usage. This is based on the slowing of mobile data traffic and a majority of nations having largely completed spectrum allocations.

Ookla data for Q2 showed nations in the north and south of the continent are well ahead in terms of 5G availability compared to some central and western European nations. The network performance measurement company put the disparity down to a carrot-and-stick combination of spectrum management subsidies and coverage requirements, highlighting that this resulted in nations including Sweden and Norway being frontrunners despite having some of the lowest population densities and most challenging terrains.

At the other end of the scale are nations including Hungary, the UK, and Belgium. Ookla noted UK operators were put on the back foot by a costly government mandate to replace Huawei equipment, with no 5G coverage requirements imposed after operators bargained on a Shared Rural Network initiative using 4G. Monetary woes were compounded by funding gaps in the wake of the UK’s exit from the EU, which denied operators access to key grants.

By contrast, Spanish and Italian government funding contributed to operators taking a leading position in 5G availability. Ookla highlighted that Spain has some of the best access to standalone technology. But Ookla warned the SA picture across Europe was worsening. Using its Speedtest data as a proxy for coverage, Ookla stated Europe’s sample share declined from 2% in Q1 to 1.3% in the recent quarter, when the US figure stood at more than 20% and China’s 80%.

The company reasoned Europe is at the mid-point in the 5G technology cycle, with network expansion capex having peaked in most nations and flagship low- and mid-band spectrum auctions complete. “Mobile data traffic growth is now slowing for the first time and European operators have been more cautious than peers in North America or Asia in adopting new technologies, including SA variants, ” it noted.

Ookla explained regulation is a mixed blessing, branding it a barrier for deployments in some Western and Eastern European markets, but a potential boon when it comes to harmonisation efforts. It noted 5G stands at the heart of the European Commission’s strategy to boost the region’s competitiveness, along with moves to speed infrastructure deployments through various digital-focused legislation.