# The cost of campus networks

Many companies want to implement the Industry 4.0 concept with their own 5G networks. The German Federal Network Agency has now presented a formula to calculate the fees involved in this.

20 Nov 2019 Roland Freist## Share

The 5G technology is not only to be used in major providers’ mobile networks, but will also enable companies to set up campus networks on their own premises, to facilitate wireless data connections between machines or factory robot controls, for example. The German Federal Network Agency (BNetzA) has provided the frequency range between 3.7 and 3.8 GHz for these networks, a range which was therefore deliberately excluded from the 5G frequency auction.

Now, BNetzA has presented a calculation model for the use of these frequencies , namely: fee = 1000 + B x t x 5 (6a1 + a2), where B stands for the bandwidth in MHz used, whereby the minimum value is 10 MHz and the maximum value 100 MHz. The term t refers to the period of use in years or pro rata based on each month commenced. The parameters a1 and a2 denote the surface area covered by the campus network in square kilometers, where a1 represents land settlements and transport infrastructure and a2 other types of land. Definitions of the various types of land can be found on the ‘ Structure of Land Use’ page on the German Federal Environment Agency’s website .

Example calculation: If a company wants to use a bandwidth of 100 MHz in its campus network on a settlement and transport infrastructure area of 25 km2 for a period of ten years, this results in a fee of: 1000 + 100 x 10 x 5 (6 + 25) = €626,000 for the entire duration.

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