5G regulation and law in Portugal

Portugal has been actively working on the deployment of 5G networks, with significant progress made in recent years. The country has seen the involvement of major telecommunications operators such as NOS, MEO (Altice Portugal), and Vodafone Portugal in rolling out 5G services. The Portuguese government and regulatory bodies, such as Autoridade Nacional de Comunicações (ANACOM), have been facilitating the deployment through spectrum auctions and regulatory frameworks.

In 2021, ANACOM conducted a 5G spectrum auction, which was a crucial step in enabling operators to acquire the necessary frequencies to deploy 5G networks. The auction included bands such as 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz, and 3.6 GHz, which are essential for providing comprehensive 5G coverage and capacity.

SA 5G Networks: SA  networks represent the next phase of 5G deployment, offering enhanced capabilities compared to non-standalone (NSA) 5G networks, which rely on existing 4G infrastructure. SA 5G networks provide benefits such as lower latency, higher efficiency, and the ability to support advanced applications like massive IoT and ultra-reliable low-latency communications (URLLC).

In Portugal, the deployment of SA 5G networks is still in its early stages. While the initial focus has been on deploying non-stamdalone (NSA) 5G networks to quickly provide 5G services to consumers, operators are gradually transitioning to SA 5G. This transition involves significant investment in new infrastructure, including 5G core networks that are independent of 4G LTE systems.

Current Status and Future Prospects:

• NOS: NOS has been actively expanding its 5G network and has announced plans to invest in SA 5G technology. The company aims to leverage SA 5G to offer advanced services and improve network performance.
• MEO: MEO has also been working on 5G deployment and participated in the 5G spectrum auction. The operator is expected to transition to SA 5G as part of its long-term strategy.
• Vodafone Portugal: Vodafone has been a key player in the 5G roll-out in Portugal and has conducted various trials and pilot projects for SA 5G. The company is committed to advancing its 5G infrastructure to support SA capabilities.

Overall, while Portugal has made significant strides in deploying 5G networks,  full-scale deployment of SA 5G is still a work in progress. The transition to SA 5G will likely accelerate in the coming years as operators continue to invest in the necessary infrastructure and technology.

The Portuguese government, through ANACOM, has implemented a comprehensive regulatory framework to ensure that a wide range of operators and industrial companies have access to frequencies. This framework includes the organization of spectrum auctions, which are designed to be inclusive and competitive, allowing various entities to participate and acquire the necessary spectrum for their operations.

In 2021, ANACOM conducted a significant 5G spectrum auction, which included multiple frequency bands such as 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz, and 3.6 GHz. The auction was structured to promote fair competition and prevent market monopolization by larger operators. Specific measures were put in place to ensure that smaller operators and new entrants could also secure spectrum, thereby fostering a diverse and competitive telecommunications market.

Spectrum Caps and Set-Asides: To further support a wide range of operators, ANACOM implemented spectrum caps and set-asides during the auction process. Spectrum caps limit the amount of spectrum that any single operator can acquire, preventing dominant players from monopolizing the available frequencies. Set-asides reserve portions of the spectrum specifically for smaller operators or new market entrants, ensuring they have the opportunity to participate and compete effectively.

Support for Industrial Companies: In addition to telecommunications operators, ANACOM has recognized the importance of providing industrial companies with access to spectrum, particularly for private networks and specialized applications such as Industry 4.0, IoT, and smart manufacturing. The regulatory framework includes provisions for the allocation of spectrum for industrial use, enabling companies to deploy private 5G networks tailored to their specific needs.

Innovation and Research Initiatives: Portugal has also been promoting innovation and research initiatives to support the development and deployment of 5G technologies across various sectors. Collaborative projects involving academia, industry, and government entities are encouraged to explore new use cases and applications of 5G. These initiatives often include funding and support for small and medium-sized enterprises (SMEs) to participate in the 5G ecosystem, ensuring that a broad range of companies can benefit from  advancements in 5G technology.

Public-Private Partnerships: Public-private partnerships play a crucial role in ensuring that a wide range of operators and industrial companies have access to frequencies. The Portuguese government collaborates with private sector stakeholders to develop and implement policies that facilitate spectrum access and promote the deployment of 5G networks. These partnerships help align the interests of various stakeholders and create a conducive environment for the growth of the telecommunications and industrial sectors.

Future Prospects: As Portugal continues to advance 5G deployment, ongoing efforts will be made to ensure that spectrum access remains inclusive and equitable. ANACOM is expected to conduct additional spectrum auctions and review regulatory policies to adapt to the evolving needs of the market. The focus will remain on fostering competition, supporting innovation, and enabling a diverse range of operators and industrial companies to thrive in the 5G era.

Overall, the combination of regulatory measures, spectrum management strategies, and collaborative initiatives ensures that a wide range of operators and industrial companies in Portugal have access to the necessary frequencies to deploy and benefit from 5G technology.

2021 5G Spectrum Auction: The most significant public tender for awarding spectrum licences for 5G in Portugal took place in 2021. This auction was organized by ANACOM. The auction was a comprehensive process that included multiple frequency bands essential for the deployment of 5G networks. The key details of the auction are as follows:

• Frequency Bands: The auction included the 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz, and 3.6 GHz bands. These bands are crucial for providing a mix of coverage and capacity, enabling operators to offer robust 5G services across different areas and use cases.
• Participants: Major telecommunications operators such as NOS, MEO, and Vodafone Portugal participated in the auction. Additionally, provisions were made to encourage participation from smaller operators and new market entrants.
• Spectrum Caps and Set-Asides: To ensure fair competition and prevent market monopolization, ANACOM implemented spectrum caps, limiting the amount of spectrum any single operator could acquire. Set-asides were also included to reserve portions of the spectrum for smaller operators and new entrants.
• Auction Outcomes: The 2021 auction resulted in the allocation of spectrum licences to various operators, enabling them to deploy and expand their 5G networks. The auction raised significant revenue for the government and set the stage for the widespread roll-out of 5G services in Portugal.
• Future Auctions: ANACOM is expected to conduct additional spectrum auctions to further support the deployment of 5G and other advanced communication technologies. These future auctions will likely continue to include measures to promote competition and ensure that a diverse range of operators and industrial companies have access to the necessary spectrum.
• Impact on 5G Deployment: Successful completion of the 2021 5G spectrum auction has been a critical milestone in Portugal's journey towards comprehensive 5G deployment. The awarded licences have enabled operators to invest in and build out their 5G infrastructure, bringing advanced connectivity and new opportunities to consumers and businesses across the country.

Overall, the public tenders and spectrum auctions conducted by ANACOM play a vital role in shaping the telecommunications landscape in Portugal, ensuring that the country remains at the forefront of 5G innovation and deployment.

For the 2020/2021 auction, the winner was the highest bidder in the final round.

In the Consignment phase, successful bidders in the 700 MHz, 1800 MHz, 2.6 GHz (FDD) and 3.6 GHz bands will be able to choose the exact location of the winning lots within their frequency band. The ANACOM Board shall rank the successful bidders in each category according to the following successive criteria: (i) higher final amount in the relevant category; (ii) highest number of lots won in that category; and, (iii) the higher number of lots won in all categories.

For the Assignment of the 900 MHz band, ANACOM defines the exact location of the spectrum, taking into account the number of assigned lots under specific categories as well as the spectrum already assigned RUF on the date the Auction Regulation goes into effect. The definition of the exact location of the spectrum was based on the following principles: Companies must (i) ensure the pursuit of the public interest in the management of radio spectrum, according to criteria of proportionality and respect for acquired rights; (ii) optimise efficient use of spectrum in the 900 MHz bands; and, (iii) maximise the contiguity of allocated spectrum and spectrum held by each entity, as well as unallocated spectrum.

As regards the 2020/2021 auction (the most relevant to date), under the general conditions in the Law 5/2004 of 10 February (Electronic Communications Law), ANACOM has defined in the Auction Regulations:

• Requirements for coverage, network development and strength of the fixed voice signal;
• Network access obligations;
• Obligations to use assigned frequencies effectively and efficiently;
• Specific technical and operational conditions, particular regarding the security and integrity of electronic communication networks and services;
• The maximum duration of the rights of use (20 years) may be renewed;

Reporting obligations to ANACOM, particularly as to the intention to transmit or lease frequency rights of use, as well as the conditions under which they intend to do so, two years from the date of commencement of provision of publicly available electronic communications services using the assigned frequencies.

As regards the 2020/2021 auction, the reserve prices in the Auction Regulation totalled EUR 237.9m (USD 248m), adjusted for the economic value of the national spectrum as well as for reserve prices set in other European countries, which have on average proven to be significantly lower than the respective final prices.

ANACOM defines reserve prices as the minimum value to be paid for the allocation of RUF for a given lot, specifically with reference to the prices defined in the Auction Regulation.

The prices of the lots are defined as follows:

• New Entrant Bidding phase corresponds to the reserve price in the first round and in the following rounds to the value determined by the Board of Directors of ANACOM; and,
• Main Bidding phase corresponds in the first round to the reserve price, and in the following rounds to the value of the best bid in the previous round or, if no bids have been submitted, to the reserve price.

In each of the two processes, the final amount payable by each winning bidder corresponds to the sum of the final prices of the lots won by that bidder.

Challenges in 5G Deployment: The implementation of 5G projects in Portugal, as in many other countries, has faced several challenges. These challenges can be broadly categorized into regulatory, technical, and societal issues.

Regulatory Challenges:

Spectrum Allocation Delays: The process of spectrum allocation has sometimes faced delays, which can slow down the overall deployment of 5G networks. The 2021 spectrum auction, while successful, took longer than initially anticipated, which impacted the timeline for operators to begin 5G roll-outs.

Compliance and Licensing: Ensuring that all operators comply with the terms and conditions of their 5G licenses can be a complex process. Regulatory bodies such as ANACOM have to continuously monitor and enforce compliance, which can be resource-intensive.

Infrastructure Development: Building the necessary infrastructure for 5G, including the installation of new base stations and upgrading existing ones, requires significant investment and coordination. This process can be hindered by logistical issues, such as obtaining permits and dealing with local regulations.

Interference and Coverage: Ensuring that 5G networks provide comprehensive coverage without interference from other wireless services is a technical challenge. Operators need to carefully plan and optimize their networks to avoid issues that could affect service quality.

Public Perception and Health Concerns: There have been public concerns about the potential health effects of 5G radiation. While scientific evidence does not justify these concerns, they can still lead to resistance from local communities, affecting the deployment of 5G infrastructure.

Environmental Impact: The environmental impact of deploying new 5G infrastructure, including energy consumption by new base stations, is another concern that needs to be addressed.

Decisions Regarding Non-Compliance with 5G Concessio Obligations

Monitoring and Enforcement by ANACOM: ANACOM is responsible for monitoring compliance with 5G concession obligations. This includes ensuring that operators meet deployment targets, provide the required coverage, and adhere to technical standards.

Penalties and Sanctions: If an operator is found to be non-compliant with its 5G license obligations, ANACOM has the authority to impose penalties and sanctions. These can include fines, additional regulatory requirements, or, in severe cases, revocation of the spectrum license.

Remedial Actions: In cases of non-compliance, ANACOM may also require operators to take specific remedial actions to address the issues. This could involve accelerating their deployment efforts, improving coverage in underserved areas, or upgrading their infrastructure to meet technical standards.

Recent Decisions: As of the latest available information, there have been instances where ANACOM has taken action against operators for non-compliance. For example, ANACOM has issued warnings and imposed fines on operators that failed to meet their coverage obligations or did not adhere to the technical requirements specified in their licenses. These actions are part of ANACOM's ongoing efforts to ensure that 5G deployment in Portugal proceeds smoothly and benefits all stakeholders.

Future Outlook: ANACOM is expected to continue rigorous monitoring and enforcement activities to ensure that all operators comply with 5G concession obligations. This will help maintain a fair and competitive market, promote the efficient use of spectrum, and ensure that consumers and businesses in Portugal can fully benefit from the advancements in 5G technology.

Overall, while there have been challenges and instances of non-compliance, the regulatory framework and enforcement mechanisms in place are designed to address these issues and support the successful implementation of 5G projects in Portugal.

ANACOM's Strategic Plan: ANACOM has outlined a strategic plan to manage and allocate spectrum for the long-term development of 5G and other advanced communication technologies. This plan is designed to ensure that Portugal remains at the forefront of telecommunications innovation and can meet the growing demand for high-speed, reliable connectivity.

Key Elements of the Long-Term Spectrum Plan:

Additional Frequency Bands: ANACOM is expected to conduct future spectrum auctions to allocate additional frequency bands that are essential for the continued expansion and enhancement of 5G networks. These auctions will likely include higher frequency bands, such as millimetre-wave (mmWave) bands, which can provide ultra-high-speed connectivity and support advanced applications.

Auction Timelines: While specific dates for future auctions have not been announced, ANACOM has indicated that it will continue to monitor market needs and technological advancements to determine the appropriate timing for these auctions. The goal is to ensure that operators have access to the necessary spectrum to support ongoing 5G deployment and future innovations.

Re-farming Existing Bands: ANACOM is also considering the re-farming of existing frequency bands to optimize their use for 5G and other advanced technologies. This process involves reallocating spectrum that is currently used for older technologies, such as 2G and 3G, to support more efficient and higher-capacity 5G networks.

Dynamic Spectrum Sharing: The regulatory body is exploring the potential of dynamic spectrum sharing, which allows multiple services to coexist in the same frequency band. This approach can maximize the efficient use of spectrum and provide greater flexibility for operators.

Private Networks and Industrial Applications: ANACOM's long-term plan includes provisions for allocating spectrum to support private 5G networks and specialized industrial applications. This is particularly important for sectors such as manufacturing, logistics, and healthcare, which can benefit from the advanced capabilities of 5G.

Research and Development: The plan encourages ongoing research and development initiatives to explore new use cases and applications of 5G technology. This includes collaboration with academic institutions, industry stakeholders, and government entities to drive innovation and ensure that Portugal remains a leader in 5G deployment.

Adapting to Market Needs: ANACOM is committed to maintaining a flexible regulatory framework that can adapt to the evolving needs of the market. This includes regularly reviewing and updating spectrum policies to reflect technological advancements and changing market dynamics.

Stakeholder Engagement: The regulatory authority actively engages with stakeholders, including telecommunications operators, industrial companies, and consumer groups, to gather input and ensure that spectrum management policies align with the interests of all parties.

Announcements and Future Prospects: While specific announcements regarding future tenders and spectrum auctions are made periodically, ANACOM has consistently communicated its commitment to supporting the long-term development of 5G. The regulatory body is expected to provide updates on upcoming auctions, spectrum re-farming initiatives, and other strategic plans through official channels and public consultations.

Overall, ANACOM's long-term spectrum plan aims to create a conducive environment for the continued growth and innovation of 5G technology in Portugal. By ensuring that operators have access to the necessary spectrum and supporting a diverse range of use cases, the plan seeks to maximize the benefits of 5G for consumers, businesses, and the broader economy.

The specific rules (apart from the Electronic Communications Law referred to above) are the Portuguese RCM 7-A/2020, which approves the strategy and timetable for the distribution of 5G, and the Auction Regulation, which defines the conditions for allocating RUF in the 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz and 3.6 GHz bands.

Network Sharing Agreements: In Portugal, network sharing agreements are becoming increasingly common among telecommunications operators as a strategy to reduce deployment costs, improve coverage, and accelerate the roll-out of 5G services. These agreements allow operators to share infrastructure such as base stations, antennas, and other network components, which can lead to significant cost savings and operational efficiencies.

Passive Sharing: This involves sharing physical infrastructure such as towers, masts, and power supplies. Passive sharing is relatively straightforward and does not involve the sharing of active electronic components.

Active Sharing: This includes sharing active network elements such as radio access network (RAN) equipment, which can lead to more substantial cost savings but requires more complex coordination between operators.

Core Network Sharing: In some cases, operators may also share core network components, which handle data routing and management. This type of sharing is less common but can provide additional efficiencies.

Spectrum Sharing Agreements: Spectrum sharing allows multiple operators to use the same frequency bands, either through dynamic spectrum access or coordinated use of the spectrum. This approach can maximize the efficient use of available spectrum and provide greater flexibility for operators.

Dynamic Spectrum Sharing (DSS): DSS technology enables operators to use the same spectrum for both 4G and 5G services simultaneously. This allows for a smoother transition from 4G to 5G and ensures that spectrum is used efficiently.

Coordinated Spectrum Use: Operators may enter into agreements to coordinate their use of spectrum, reducing interference and optimizing coverage. This can be particularly useful in densely populated areas or regions with high demand for connectivity.

Regulatory Framework for Sharing: ANACOM supports network and spectrum sharing as part of its broader strategy to promote efficient use of resources and accelerate the deployment of 5G. The regulatory framework includes specific guidelines and provisions to facilitate sharing agreements while ensuring fair competition and compliance with technical standards.

Guidelines for Network Sharing:

Transparency and Fair Competition: ANACOM requires that network sharing agreements be transparent and not lead to anti-competitive behaviour. Operators must ensure that sharing arrangements do not create barriers to entry for new market participants.

Technical Standards: Shared networks must comply with technical standards to ensure high-quality service and interoperability. This includes adhering to performance metrics, coverage requirements, and interference management protocols.

Regulatory Approval: Operators entering into network sharing agreements may need to obtain approval from ANACOM, particularly for active and core network sharing arrangements. This ensures that the agreements align with regulatory objectives and do not negatively impact the market.

Efficient Spectrum Use: ANACOM encourages spectrum sharing to maximize the efficient use of available frequencies. This includes promoting technologies such as DSS and coordinated spectrum use to enhance network performance and coverage.

Interference Management: Operators must implement measures to manage and mitigate interference when sharing spectrum. This includes coordination with other spectrum users and adherence to technical guidelines.

Compliance and Monitoring: ANACOM monitors spectrum sharing arrangements to ensure compliance with regulatory requirements. Operators must provide information on their sharing agreements and demonstrate that they meet technical and performance standards.

Collaborative Projects: Operators in Portugal have engaged in collaborative projects to explore the benefits of network and spectrum sharing. These initiatives often involve pilot projects and trials to test new technologies and sharing models.

Public-Private Partnerships: The Portuguese government and ANACOM have supported public-private partnerships to promote infrastructure sharing and efficient spectrum use. These partnerships help align the interests of various stakeholders and create a conducive environment for 5G deployment.

Future Prospects: As 5G technology continues to evolve, network and spectrum sharing will likely play an increasingly important role in the telecommunications landscape in Portugal. ANACOM is expected to continue supporting sharing initiatives and updating the regulatory framework to reflect new developments and best practices.

Overall, network and spectrum sharing agreements in Portugal are key strategies for enhancing the efficiency and effectiveness of 5G deployment. By promoting collaboration and resource optimization, these agreements help ensure that consumers and businesses can benefit from advanced connectivity and innovative services.

The Electronic Communications Law provides general rules on competition.

Under the Auction Regulation, licence holders that win 2 x 10 MHz in the 700 MHz band or at least 50 MHz in the 3.6 GHz band and hold RUF in bands designated for terrestrial electronic communications services, must allow access to their networks under non-discriminatory conditions. The network access obligations shall apply from the date of issue of the relevant enabling licences, in particular:

1. when so requested, negotiate good-faith agreements with third parties, respecting the commercial autonomy, particularly regarding distribution networks and market segments, and allowing effective competition; 
2. accept the negotiation of:
   1. Agreements that allow networks to be used by third-party virtual mobile operations (full MVNOs and light MVNOs) to offer equivalent services to their own customers; or
   2. National roaming agreements with third parties that that are not licenced holders;
   3. Fixing terms for the obligations set out in (a) and (b), for the duration of the RUF of ten years and eight years respectively;
   4. Reporting obligations and transparency with ANACOM, eg. reporting all requests for agreements received, providing fortnightly and detailed information on how negotiations are progressing and providing copies of final agreements.

ANACOM has recently issued a consultation on 26 GHz, so more developments are expected.

Regulatory Framework: The use of Chinese technology in 5G networks in Portugal is governed by a combination of national laws, EU regulations, and specific guidelines issued by ANACOM. These rules are designed to address security concerns, ensure compliance with international standards, and promote a diverse and competitive market.

Key Legal Rules and Guidelines:

Risk Assessment and Management: ANACOM requires operators to conduct thorough risk assessments of their 5G network components, including those supplied by Chinese vendors. These assessments must identify potential security threats and outline measures to mitigate risks.

Vendor Diversity: To reduce dependency on any single supplier and mitigate risks, operators are encouraged to use a diverse range of vendors for their 5G infrastructure. This includes avoiding over-reliance on Chinese technology and incorporating equipment from multiple sources.

Risk Mitigation Measures: Portugal adheres to the EU Toolbox for 5G Security, which provides a comprehensive set of measures to address security risks associated with 5G networks. The toolbox includes recommendations for managing risks from high-risk vendors, such as Chinese technology suppliers.

Critical Network Functions: The EU Toolbox emphasizes the need to protect critical network functions by limiting the involvement of high-risk vendors in core network components. This ensures that sensitive parts of the network are safeguarded against potential security threats.

Supply Chain Integrity: Operators must ensure the integrity of their supply chains by verifying the security and reliability of all hardware and software components. This includes conducting due diligence on Chinese suppliers and ensuring that their products meet national and EU security standards.

Compliance with Security Standards: All network components, including those from Chinese vendors, must comply with established security standards and technical specifications. This ensures that the equipment does not introduce vulnerabilities into the 5G network.

Security Reviews: ANACOM conducts security reviews of 5G network components, including those from Chinese suppliers. These reviews assess the potential risks and ensure that the equipment complies with national and EU security requirements.

Approval Process: In some cases, operators may need to obtain regulatory approval before deploying equipment from high-risk vendors. This process ensures that the use of such technology is carefully evaluated and managed.

Official Positions: The Portuguese government has made statements emphasizing the importance of 5G security and the need to carefully evaluate the use of technology from all suppliers, including Chinese companies. The government has highlighted the need to balance security concerns with the benefits of technological innovation and competition.

Ongoing Assessments: The government continues to assess the security implications of using Chinese technology in 5G networks. This includes monitoring developments in international relations and adapting policies as needed to protect national security interests.

Collaboration with EU and Global Partners: Portugal collaborates with EU member states and other international partners to develop and implement common security measures for 5G networks. This includes sharing information on threats, vulnerabilities, and best practices related to the use of Chinese technology.

Adherence to International Standards: Portugal ensures that its regulatory framework aligns with international standards and best practices for 5G security. This includes following guidelines from organizations such as the European Union Agency for Cybersecurity (ENISA) and the International Telecommunication Union (ITU).

Enforcement and Compliance: ANACOM is responsible for enforcing legal rules and guidelines regarding the use of Chinese technology in 5G networks. This includes conducting audits, inspections, and performance assessments to ensure compliance. Operators found to be non-compliant may face penalties, fines, or other sanctions, ensuring that they adhere to their legal obligations.

Future Developments: As 5G technology and geopolitical dynamics continue to evolve, the legal framework in Portugal may be updated to address new challenges and opportunities. This includes revising existing laws and regulations, introducing new measures to enhance security, and ensuring that the regulatory environment remains conducive to innovation and investment.

Overall, the legal rules regarding use of Chinese technology in 5G networks in Portugal are designed to create a secure, competitive, and dynamic telecommunications market. By establishing clear guidelines and promoting fair competition, these rules aim to maximize the benefits of 5G technology while safeguarding national security interests.

While 5G deployment is ongoing, there is already interest and activity surrounding the future development of 6G technology in Portugal. Research and development (R&D) initiatives are being undertaken by academic institutions, industry stakeholders, and government entities to explore the potential of 6G and lay the groundwork for its eventual deployment.

While 6G is still in the early stages of research and development, the efforts being made in Portugal are laying the foundation for its future deployment. As the technology matures, it is expected that more concrete projects and initiatives will emerge, further advancing the capabilities and applications of 6G.

Overall, the focus on 6G research and development in Portugal reflects the country's commitment to staying at the forefront of telecommunications innovation. By exploring new technologies and use cases, Portugal aims to be well-prepared for the next generation of connectivity and the opportunities it will bring.