Ofcom outline plans for 4G license auction (UK)
UK’s telecoms regulator, Ofcom has announced the proposed details for its upcoming radio spectrum auction which is expected to pave the way for 4G services in the country. It has stated that the spectrum auction is the largest ever single auction of additional spectrum for mobile services in the UK, equivalent to three quarters of the mobile spectrum in use today and 80% more than the 3G auction which took place in 2000.
It is believed that the auction will take place in the first quarter of 2012. The auction will be for two spectrum bands – 800 MHz and 2.6 GHz, and adds up to 250 MHz of additional mobile spectrum.
The auction structure will also be biased to ensure that the market retains at least four mobile networks (5 if you split the merged Orange/T-Mobile).
According to Ofcom, the least restrictive way to ensure at least four national competitors is through the use of spectrum floors in the auction. This involves disregarding any auction outcomes in which four companies do not win the minimum amount of spectrum necessary to provide higher quality data services. This can involve different combinations of spectrum, each of which could be sufficient to ensure a credible competitor.
Ofcom has proposed that this minimum amount should be one of the following five combinations:
- 2×5 MHz of sub 1 GHz spectrum and 2×20 MHz or more of 2.6 GHz; or
- 2×5 MHz of sub 1 GHz spectrum and 2×15 MHz or more of 1800 MHz; or
- 2×10 MHz of sub 1 GHz spectrum and 2×15 MHz or more of 2.6 GHz; or
- 2×10 MHz of sub 1 GHz spectrum plus 2×10 MHz or more of 1800 MHz; or
- 2×15 MHz or more of sub 1 GHz spectrum.
The watchdog also proposes to put in place safeguard caps to guard against longer term risks to competition from any one licensee holding a disproportionate amount of spectrum.
There will be a sub 1GHz safeguard cap of 2×27.5 MHz, which will mean that no one competitor can obtain more than this amount of sub 1 GHz spectrum, and there will also be an overall spectrum holdings cap of 2×105 MHz, which will mean that no one competitor can obtain more than this amount of spectrum overall.
Securing wide availability of next generation mobile broadband.
Ofcom also proposes to include a coverage obligation in just one of the 800 MHz licenses. The obligation would require the licensee to provide a mobile broadband service covering 95% of the UK population. It is expected that bidders will factor in the cost of achieving this obligation when making bids for the licence. This should result in coverage for future mobile broadband services that approaches today’s 2G coverage. The date for meeting these obligations would be the end of 2017.
A consultation is being carried out to iron out the final details, such as which of the five above spectrum limits should be adopted before the auction takes place next year.
Arcep reports 21.3 mn fixed broadband connections (France)
French telecoms regulator, Arcep has revealed that the country has recorded 21.3 million high speed and ultra-high speed fixed broadband connections at the end of 2011. It recorded a net increase of 440,000 subscriptions on the end of the third quarter, and 7% higher year-on-year.
The watchdog’s findings show that 19.9 million (or 93%) were xDSL lines, 460,000 were FTTx and the remainders were for other technologies such as cable, wireless or satellite.
Australian Transport Minister to resolve radio spectrum dispute
Australia’s Federal Transport Minister, Anthony Albanese has stepped into a dispute between the rail and telecoms industry over the fate of a block of 1800 MHz radio spectrum.
The block in question is earmarked for use by the railways for their GSM-R network, but the licenses expire between 2013 and 2015.
With the spectrum up for grab, the mobile networks are eying it for potential LTE services in the future, and they are expected to be able to out-bid any offer from the railways for the spectrum if it is offered in an open auction. The move could imperil the GSM-R network which is required for railway safety.
According to a spokesman for Albanese, the federal Transport and Infrastructure Department had asked Communications Minister Stephen Conroy’s office to meet railway representatives to resolve the issue.
The telecoms regulator, ACMA has come under political pressure to reissue the licenses to the railways at a realistic cost rather than letting them go to auction. However, there is also constant pressure on the regulator to get the maximum amount possible from the licenses to help the Federal Government fund its national Broadband Programme.
MTN promises to launch 3G services in Swaziland
MTN’s Swaziland subsidiary has confirmed that it will launch 3G services as soon as the telecoms regulator grants them permission. An application earlier this year for a license was however declined for unspecified reasons just a couple of months ago.
The regulator is also the state-owned telecoms network – causing a conflict of interest that may be resolved if long-standing plans for an independent regulator are carried out.
According to MTN Swaziland’s CEO, Ambrose Dlamini, Swazi MTN is 3G ready, all they have to do is to press a button and make the service available to the MTN network users. They are ready, what is outstanding at the moment is to be granted the appropriate licence by the regulator. As soon as they get the licence, they advise that their customers will experience an immense improvement on the data speeds and all other benefits which will come with the 3G technology.
The company is also testing a mobile money platform which could be introduced in the near future.
UK Broadband speeds less than half the advertised rate
UK’s telecoms regulator, Ofcom has warned that landline internet services are still delivering less than half of the peak download speeds being advertised by the ISPs. Their research shows that the average broadband speed increased from 5.2Mbit/s (May 2010) to 6.2Mbit/s (November/December 2010) but was less than half i.e. 45% of the average advertised broadband speed of 13.8Mbit/s.
Although most people in the UK would accept there is a problem, and the survey was apparently carried out in 1,700 households, the broadband speed cited above was based on a sample size of less than 50 households.
The findings come as Ofcom submits its response to the current Committee for Advertising Practice (CAP) and Broadcast Committee for Advertising Practice (BCAP) consultation on broadband speeds advertising.
Ofcom is recommending that if speeds are used in broadband advertising, they should be based on a Typical Speeds Range (TSR) so that consumers have a clearer idea of what speeds to expect.
Ofcom also recommends that the TSR must have at least equal prominence to any maximum ‘up to’ speed, and that a maximum speed must be used only if it is actually achievable in practice by a material number of consumers. Ofcom is also setting out what the TSR might be for each technology used to provide fixed-line broadband.
Ofcom has also responded to the consultation on the use of the term ‘unlimited’ in broadband advertising. Ofcom recommends that this term only be used when a service has no usage caps implemented through a fair usage policy.
This is to be noted that the recommendations only apply to landline services, hence, mobile networks will still be able to claim to offer up to 14Mbps (etc) for mobile broadband services.
TKK to hold consultation on GSM spectrum for 3G services (Austria)
Austria’s telecoms regulator, TKK is set to hold a consultation on future radio spectrum management plans – specifically the use of GSM spectrum for 3G services, the future of 800 MHz spectrum to be released by the Digital Dividend.
The consultation is a result of the recent Austrian Frequency Utilization Plan, which devolved the tasks and decisions to the regulator.
The new legislation transposes the amended GSM Directive into Austrian law and thus, creates the conditions necessary to utilize GSM frequencies for broadband technologies.
At the same time, the assignment of the digital dividend (800 MHz band) is also planned in the near future. As these decisions are closely interrelated, the regulatory authority considers it important to coordinate these procedures with each other.Interested parties are invited to submit comments and opinions by March 18, 2011.
The consultation document can be found on the RTR web site at http://www.rtr.at/en/komp/Konsult_DD_Refarming
Oi extends 2G/3G coverage in Rio Grande do Sul (Brazil)
Brazilian telecom operator, Telemar Norte Leste (Oi) has reportedly extended its coverage in Rio Grande do Sul state in 2010.
Last year, the operator’s 2G signal reached 63% of the population living there, thanks to the addition of 104 municipalities, while 3G coverage was increased to 30%.
The latest areas served with 3G are the coastal areas of Osorio and Torres e Xangri-la and the cities such as Alegrete, Canela, Carazinho, Cruz Alta, Jaguarao, Sant’Angelo and Sapiranga amongst others.
Brazil’s telecoms regulator Anatel reports that Oi has the fourth largest coverage in the country, with 2,913 municipalities covered by 2G and 3G technologies, reaching 83.2% of the population. Oi has not yet provided its expansion plans for the year ahead.
No financial bail-out for Nigerian CDMA Networks
Nigeria’s telecoms regulator, the Communications Commission (NCC) has ruled out possibility of a financial bailout for the country’s struggling CDMA network operators.
According to the Executive Vice Chairman of NCC, Eugene Juwah, the regulator was technology agnostic, and would not step in to support on technology over another.
The Nigerian CDMA networks have struggled to secure market share against the surging GSM operators in the country, who came from nowhere to a dominant position in just a few years.
The CDMA operators were however hit by a regulatory change that mandated the use of SIM based CDMA handsets, forcing them to clear out old stocks of handsets at a discount. The SIM mandate came in as part of the country’s drive to register all its PrePay subscribers.
According to official figures from NCC, at the end of November last year, the total number of active subscriber lines for the GSM sector reached 78.9 million representing a market share of 91.4% while the mobile CDMA sector accounted for 6.2 million representing 7.2%.
CCK confirms issuing of new spectrum fees in March (Kenya)
Telecoms regulator the Communications Commission of Kenya (CCK) has confirmed that it will issue new spectrum fees for both operators and broadcasters in March 2011.
According to CCK Director General Charles Njoroge, the idea of reviewing the licensing and spectrum fees is to enable broadcasters and operators to reach rural areas. CCK expects the operators to pass on the savings to consumers through lower prices. A system of assigning telecoms frequencies through auctions would be phased in, replacing the set fees currently leveled at operators. The price review is believed to be a response to claims from mobile operators that high charges have hindered their expansion to non-urban areas.
In December 2010 market leader by subscribers Safaricom blamed CCK for not providing sufficient spectrum to cater for its enlarged subscriber base, resulting in poor results in the CCK’s Quality of Service (QoS) assessment.
As per CEO Bob Collymore, unfortunately, one of the major constraints they face is inadequate allocation of GSM 1800 spectrum, as all operators are allocated the same quantity of spectrum by CCK, yet they have the largest number of subscribers who would benefit significantly if CCK granted Safaricom this additional resource.
