5G and PNRR: passive infrastructure or ex novo?

Analysis of strategies on the "Italy 5G" plan

5G connectivity: technology and PNRR

5G technology is the fifth generation of mobile connectivity and is set to Revolutionize the telecommunications industry, offering many additional capabilities over previous generations, such as 2G, 3G, and 4G, which only allow data and voice transmission. In contrast, 5G supports a wide range of services, including high-definition streaming video, virtual and augmented reality, IoT connectivity (Internet of Things) and much more.

One of the main peculiarities of 5G is the connection speed, which is significantly higher than the previous generation. The Theoretical data transmission speed of 5G can reach 20 Gbps, enabling users to download high-definition movies in seconds and enjoy immersive virtual reality experiences without any delay. This speed is possible Through the use of wider frequency bands and to the implementation of advanced technologies such as Massive MIMO (Multiple Input Multiple Output).

Infrastruttura 5G
5G utilizzi tecnologie

Another distinctive feature of 5G is the reduced latency. Latency is the response time of a network and measures the delay between sending information and receiving it. In the case of 5G, the latency Will be reduced to less than 1 millisecond, making it possible to use real-time applications such as self-driving vehicles and telesurgery.

Low latency will also enable smoother and more responsive communication between devices and help improve the efficiency and security of applications that require fast data processing.

5G will also have a significant impact on the Internet of Things (IoT). IoT connectivity requires a network that can handle a large number of simultaneously connected devices, as well as sufficient bandwidth to support communications between these devices. 5G will provide both of these features, enabling greater adoption of connected objects and facilitating the creation of smart city, smart factory And many other IoT implementations.

In terms of usage, 5G will impact multiple sectors, including manufacturing, automotive, healthcare, entertainment and energy. For example, in manufacturing, 5G will be able to be used for the Real-time monitoring of production processes, control of machines through wireless connections, and the use of autonomous robots To improve automation. 

In the automotive field, 5G technology will enable the communication between vehicles (V2V) and communication between vehicles and road infrastructure (V2I), thereby facilitating the development of self-driving vehicles and improving road safety

Public administration and 5G

In 2019, the Communications Guarantee Authority (AGCOM) allocated the first frequencies for 5G use to major Italian telecommunications companies. Currently, many Italian cities have 5G networks in operation, allowing users to experience the benefits of this new technology. However, 5G coverage in Italy is still limited, and there are many areas that are not yet covered by the network. 

Italian authorities are taking steps to accelerate the deployment of 5G in the country by offering incentives to companies to implement the network and simplifying the bureaucratic processes involved in installing the infrastructure needed to support 5G.

From an initial assessment it might seem obvious that for a public administration the best approach is to create a new passive network infrastructure to be devoted to 5G technology, especially in the context of an economic public-private partnership operation.

Traffico dati rete mobile
Mobile network data traffic trends from February 2020 to November 2021. (Source: Agcom)
Piano Italia 5G

However this choice must consider the existing infrastructure and the calls issued under the "Italy 5G" in implementation of the PNRR (National Recovery and Resilience Plan).

This evidence was addressed by the reporting of the AGCM (Competition and Market Authority) of July 25, 2023 regarding the 5G Project promoted by the city of Rome (Project #ROMA5G), Under the tender process of Project financing in which the Authority pointed out critical issues related to:

  1. The creation of the network 5G entirely from scratch without taking into account the existing infrastructure since the territory of Roma Capitale already has a complex and articulated network of infrastructure for mobile electronic communication services, built over time by the MNO (mobile network operators) intended to be developed with both private and public investments - the latter provided for in the "Italy 5G" of the Italian government, until the goal of covering the entire City of Rome with high-performance 5G technology is reached in 2026;

2. Requiring participants to hold rights to use frequencies because, although this choice may seem appropriate to ensure greater neutrality in negotiations with the various parties who may request access to the network of the concessionaire awarded the tender, it does not, however, take into account the fact that network operators are the sole holders of the rights to use frequencies. They alone, therefore, can ensure that networks are turned on and, therefore, that signals are transmitted to users. 

The risk is, therefore, that the construction of an infrastructure managed by a party other than the frequency holders will not guarantee the continuity of the service and its efficiency, which are, instead, the goal of the entire project, with serious prejudice to end consumers. It is for this reason that, even in the past, public plans financing mobile networks, not only in Italy, have mandatorily coupled the implementation of the network with its switch-on, effectively requiring the participation in the implementation of the plans of at least one company holding the rights to use frequencies. 

In addition, the tender documents provide in favor of the proposer the right of first refusal which, although provided for in the Public Contracts Code, would, in the present case, have the effect of substantially weakening the objective ultimate underlying principle of any tender, namely the full unfolding of a healthy competitive dynamic in favor of the contracting station: such a provision would, in fact, mitigate the incentives for other parties to participate, in the knowledge that the project promoter, with a high probability, will make use of the right of first refusal;

Requisiti prestazionali minimi per applicazione
Minimum performance requirements with respect to 5G application areas (Source: 5G & beyond Observatory, Politecnico di Milano)

Advantages and disadvantages

Vantaggi infrastruttura ex novo

In addition to reporting AGCM it is possible to specify that the preliminary assessments, which the PA, regarding the choice between a passive infrastructure created from scratch or an existing one will be between:

    • The cost, as creating passive infrastructure from scratch can be very expensive, especially if it is an articulated urban area;
    • The availability Of an existing infrastructure that is suitable for the needs of the 5G project.
    • Compatibility With new 5G technologies.
    • Maintenance much more frequent in an existing one than in a new one.

The benefits of using the existing passive infrastructure:

  • Lower costs because the existing passive infrastructure is generally inferior to creating passive infrastructure from scratch;
  • Faster turnaround time as leveraging the existing passive infrastructure can reduce the implementation time of the 5G project;
  • Lower environmental impact as leveraging the existing passive infrastructure can reduce the environmental impact of the 5G project.
 
 

Advantages of building passive infrastructure from scratch:

  • Greater flexibility as an ex novo passive infrastructure can be designed specifically for the needs of the 5G project.
  • Increased capacity as a passive infrastructure from scratch can support more users and devices.
  • Increased reliability because a passive infrastructure from scratch may be more reliable than an existing passive infrastructure
Dati progetto italia 5G
Perimeter of fiber optic binding intervention in the "Italy 5G" Plan
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