– Jordanian government is in the process of selecting frequencies for the distribution of 5G network licenses
– Each carrier seems to start purchasing 5G network equipment after bidding for licenses
Jordan is preparing for the beginning of the 2020G era after 5. The introduction of 5G infrastructure is also accelerating as the five-year (2021-2025) plan for national digital transformation was announced led by the Jordanian Ministry of Digital Economy and Startup. Below, we look at the movements related to 5G adoption in Jordan.
Jordan 5G Sector Status and Government Policy
Jordan's telecommunications business is in line with the history of Orange Jordan, the largest telecommunications operator in Jordan. In January 2010, Orange Jordan (Jordan's largest telecom operator) launched the first 1G network in Jordan. Then, by September 3, the number of 2010G network users reached 9 million, about 3% of Jordan's population at the time. In 30, Orange Jordan launched Jordan's first 200G network service, and two years later, in 2014, it started a 4G network construction business using Nokia's GPON (Gigabit passive optical network) technology and FTTH (Fiber to the home) method. . Following Orange Jordan, Jordan's representative telecommunications companies such as Zain and Umniah also participated in the FTTH project for 2G deployment.
The expansion of the 5G network was first mentioned in the “National Digital Transformation Strategy and Implementation Plan (2021-7)” report released by the Jordanian Ministry of Digital Economy and Entrepreneurship in July 2021. The report mentions that 2025G technology has been spreading mainly in the Middle East Gulf countries since 2019, and argued that Jordan, like neighboring countries, should introduce smart solutions to build 5G networks and expand network infrastructure. The Ministry of Digital Economy and Startup set the “connectivity improvement” indicator as a performance indicator for national digital innovation, and selected targets for optical cable installation and 5G network penetration by 2025. The table below shows the goals for each year.
<The Jordanian Government’s Goal of Fiber Optic Cable and 5G Network Penetration Rate>
[Source: Jordanian Ministry of Digital Economy and Entrepreneurship]
Currently, the Jordanian government is actively conducting a national broadband network project that connects 1,361 government agencies with a national FTTH optical communication network. Jordan's telecommunication networks continue to become denser as Jordan's telecommunication companies expand their businesses. In addition, according to the Digital Innovation Strategy Report (2018-88.8), the penetration rate of optical cables in the government sector is the highest at 88.5% as of 2021, and the optical cables used in the rest of private businesses and homes are 2025-2022%, which is insufficient.
According to an interview conducted by KOTRA Amman Trade Center in March 2022 with Dr. Nisreen Al-Sayyed, General Manager of the National Information System Division of Jordan's Digital Economy and Entrepreneurship Department, Jordan's 3G technology is still in the design stage. Currently, research conducted by the government can be divided into two categories: technical and commercial. In the technical aspect, studies are conducted to test the most suitable frequencies for 5G networks, 5G infrastructure technologies, and optimal locations to implement pilot projects. It is becoming. That is, in order to determine the frequency bandwidth for 5G, the Jordanian government is conducting research on frequency bandwidths allocated to 5G services in other countries and experiments with 5G services through specific frequency bandwidths. In addition, the Jordanian government is also researching the direction of redistribution of existing frequency bands according to the spread of 5G service, and is revising related regulations including procedures for using frequencies. In September 5, the Jordan Telecommunications Regulatory Commission also held a workshop program on 2019G regulation and services in collaboration with Huawei and Ericson to help government officials learn the latest information on 9G.
In the commercial aspect, feasibility studies, price benchmarking, and economic feasibility studies on payment methods are in progress with the goal of stable commercialization of 5G networks. Currently, 5G frequency selection and license bids have not been made, so they are all in the research stage, and no actual execution plan for 5G infrastructure installation has been prepared yet.
In addition, the Jordanian government is participating in related international events and conferences to build a 5G network. In February 2019, the Jordanian Telecommunications Regulatory Commission visited Oman's Telecommunications Regulatory Authority (TRA) to acquire practical know-how on telecommunications service regulation, while participating in the ITU World Telecommunications Forum held in Budapest in September 2, Acquired information about IoT and artificial intelligence (AI). The Telecommunications Regulatory Commission worked with the Euro-Mediterranean Regulators Group to establish a 2019G-related information network to exchange views among member countries, identify 9G implementation and adoption levels in other member countries, and research technical and economic issues. .
Trends of major local companies related to 5G
Telcos in Jordan are awaiting licenses to begin bidding processes to implement 5G network infrastructure. In addition, these companies are conducting a 5G trial service through the frequency bandwidth that has been trially allocated by the Jordanian government. In other words, companies are implementing 5G networks in areas designated by the government, measuring the reach, speed, and performance of base stations, making plans to purchase necessary equipment in the future, and trying to combine Internet of Things (IoT) technology with 5G networks.
1) Zain Jordan
On January 2022, 1, Zain Jordan received applications, core equipment and network lifecycle automation systems related to wireless network monitoring and remote data collection from Infovista, a French telecommunications company. Zain Jordan will work with Infovista to measure 12G performance, speed, service distance, etc., carry out mobile network testing, price benchmarking, and examine service quality from the end user's point of view to establish a 5G deployment plan.
2) Orange Jordan
Orange Jordan is receiving communication-related digital technologies from Ericsson, a Swedish telecommunication equipment manufacturer, through the 'Ericsson Educate' program. The program includes customized learning paths on a variety of topics such as 5G, machine learning and AI, through which Orange Jordan will share knowledge from Ericsson regarding the commercialization of 5G networks. Orange Jordan is also currently providing IoT/big data services tailored to the Jordanian market through 2G/3G/4G networks, and a trial linkage with 5G networks is also in progress.
According to Raslan Deiranih, vice president of Orange Jordan, once a 5G license is obtained from the government, it will take about a year and a half to install the necessary infrastructure to support the 5G network. In addition, he emphasized the need for close cooperation between the private sector and the government as there are numerous problems such as rising costs due to competition for license purchases among major telecommunication companies and burden of 1G equipment costs when promoting 6G commercialization.
3) Huawei Jordan
Huawei is participating in the construction of 5G networks in NATO member countries such as Hungary, Iceland, the Netherlands and Turkey, and Middle Eastern countries such as Saudi Arabia and the United Arab Emirates, including Jordan, are also using Huawei technology. For example, Umnah, one of Jordan's three largest carriers, recently used Huawei's technology to upgrade its integrated consumer billing system.
Huawei has participated in several workshops to side-support the Jordanian government in terms of technology and regulation related to 5G implementation. Huawei has also opened three training centers in Jordan's major universities of applied technology, such as Al-Balka Institute of Technology, Yarmook University, and PSUT University, to enhance the digital skills of local talent and students in Jordan. These training centers are running advanced technology training programs such as cybersecurity, AI and 3G networks.
Prospects and Implications
Due to the 2019G network distribution policy led by the Jordanian government in earnest from 5, a public optical cable communication network has been completed in the southern region of Jordan, and an optical cable communication network is being established in the central and northern part of Jordan. In addition, the Jordan Telecommunications Regulatory Commission is in the process of reorganizing policies and regulations related to the introduction of 5G. As is known, the Jordanian government is in the final stage of establishing a 5G regulatory policy. In the first quarter of 2022, the Jordanian government announced that a license for private operators, such as telecommunication companies, to start and operate infrastructure would be issued soon. It is expected.
Jordan's leading telecommunication operators, such as Zain, Orange, and Umnah, are working with global 5G infrastructure companies such as Huawei and Ericsson to study 5G introduction issues. In addition, FTTH infrastructure is being installed in areas with high population density, such as Rusaifa, Zarqa, and Irbid, centering on the West Amman area to attract customers after the license purchase. In the case of actual 5G distribution, IT infrastructure supplementation work is also underway to enable migration of existing 3G and 4G networks to 5G networks. Currently, telecom operators are waiting for the government to issue licenses to begin bidding on the purchase of 5G infrastructure consulting services and technology.
Therefore, the demand for 5G-related hardware and solutions in Jordan is expected to increase in the future. Jordanian 5G network operators plan to purchase equipment needed for 5G networks in earnest after the government's license issuance. In addition, since the penetration rate of FTTH infrastructure, which must be preceded by 5G network construction, is currently at a low level, related demand from the government and the private sector is expected to continue.
In this initial stage, if a Korean company supports each Jordanian carrier's 5G-related infrastructure design, solution provision, hardware supply, etc., it is highly likely that the contract will be carried out at each carrier's equipment bid after the license is distributed. In addition, if a low unit price is presented in consideration of the Jordanian situation, which is burdened with equipment purchase, the possibility of adoption is higher. As the Jordanian government invests in the 5G industry in various ways through the 5-year national plan and private companies conduct practical research for the spread of 5G, Korea can also seek new opportunities in the Jordanian telecommunication market.
Source: Jordanian Ministry of Digital Economy and Start-up, Telecommunications Regulatory Commission, Comprehensive press releases and KOTRA Amman Trade Center’s own survey data