Ofcom suggests 900MHz compromise

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Ofcom suggests 900MHz compromise

By CAROLINE GABRIEL

Published: 13 February, 2009

READ MORE: Spectrum | Regulation

UK regulator Ofcom has announced revised plans for the 900MHz GSM spectrum, planning to liberalize its rules to support its ubiquitous broadband objectives, as set out in last month's Digital Britain report.

The new proposals should finally settle the long standing row over trading spectrum among the four GSM carriers in the UK - in return for allowing them to refarm these frequencies for cost effective 3G, especially for rural areas, Ofcom wanted the licenses distributed more evenly between the four (3 is exempted as it does not have any 900MHz or GSM), with Vodafone and O2 to relinquish some spectrum to the others.

In its new consultation document, it suggests that existing 900MHz licensees should all be required to release 10MHz of spectrum in total (2x5MHz), which would be released and put on the open market at auction. This would then be targeted at 3G data services. The auction would take place in summer 2010 and the licenses would be tradable. This could further push out the auction of 700MHz and even 2.6GHz spectrum, as most operators want to know what they will have available for 3G in 900MHz before they can value the new licenses. A European framework for 900MHz licensing and refarming should be produced later this year.

Also in the UK, the network sharing joint venture of T-Mobile UK and 3 UK - Mobile Broadband Network Limited (MBNL) - has chosen Ericsson to provide managed services, and 220 T-Mobile staff have transferred to the Swedish firm, which will be responsible for the network design and deployment requirements of the 3G consolidation program. This will reduce the number of radio sites from 18,000 sites to 13,000. Ericsson already won a managed services deal to operate the integrated 3G RAN and T-Mobile's 2G network.