Iceland Opens Consultation on Private 5G Spectrum in 3.8-4.2GHz Band

Iceland's regulator Fjarskiptastofa has opened a consultation on licensing spectrum between 3800MHz and 4200MHz for local and private 5G networks, with responses accepted until 10 November.

The move could open the band — widely regarded as ideal for local area networks where capacity matters — to factories, ports and utilities, alongside operators and other entrants. The regulator also noted the frequencies suit fixed wireless access services, widening the potential commercial base beyond industrial users.

For practitioners, the proposal matters because it sets out concrete licence parameters rather than vague policy intent. Each detail changes who can build what, and how quickly.

What licence tiers are proposed?

Fjarskiptastofa proposes two tiers: one for low-power deployments and another for medium-range installations.

Low-power licences would confine coverage within a 50-metre radius, with multiple transmitters allowed under a single permit. That design suits dense indoor environments such as factory floors, warehouses or campus sites, where operators may need several radio points to cover production lines.

Medium-range licences would be "limited to a specific transmission location" under the regulator's wording. This tier appears aimed at larger but still geographically bounded sites, such as port terminals or utility substations.

How much spectrum and for how long?

Licences would come in five bandwidth sizes: 20MHz, 40MHz, 60MHz, 80MHz and 100MHz, with 100MHz the maximum per permit. That ceiling matters for planners — a full 100MHz block in the mid-band is sufficient for multi-gigabit peak throughput in 5G deployments, though low-power tiers will deliver far less range.

Licences would run for a decade — a ten-year horizon that gives enterprises time to amortise network investment, roughly one full equipment refresh cycle for industrial radio gear. Holders would need to launch services within a year of receiving clearance, a rollout condition designed to prevent spectrum hoarding.

After the consultation closes on 10 November, Fjarskiptastofa intends to publish all comments not covered by confidentiality requests.

How does this fit the European picture?

The band is already popular for private 5G across Europe. In 2025, the European Union called on member states to harmonise access to the same frequencies, arguing broad benefits for industrial and non-industrial players alike. Iceland's consultation aligns the country with that wider push and with global deployments of local 5G in the mid-band.

Harmonisation, however, carries its own risks. In 2022, the GSMA expressed concern that some member states could favour specific licensing systems and so constrain the market. A regulator that steers spectrum toward one model — shared access, local licensing or incumbent reallocation — shapes which vendors and integrators win the resulting contracts. Iceland's two-tier proposal appears neutral on technology and licensee type, but stakeholders have until November to test whether the parameters hold up in practice.

What changes for operators and enterprises?

For Icelandic mobile operators, the consultation signals new competition for mid-band spectrum from enterprises that may self-build. For factories, ports and utilities, it offers a path to dedicated capacity without negotiating wholesale terms with a national carrier — a meaningful shift in a market of Iceland's size.

The fixed wireless access angle adds another dimension: the band could support rural or enterprise connectivity where fibre is uneconomic, using the same licensed blocks.

Following the 10 November deadline, Fjarskiptastofa will review submissions and publish non-confidential comments, with final licence terms expected to follow — setting the timeline on which Iceland's first private 5G networks in the band could be assigned spectrum.