The UK government has [finally] given the green light for regulators to auction “4g” frequencies. UK regulator Ofcom said it aimed to hold the auction at the end of 2011 and will conduct a combined auction of 2.6GHz and 800MHz spectrum, reports the Financial Times.
The bandwidth becoming available in the new frequency bands (800MHz and 2.6GHz) is expected to pave the way for UK operators to launch LTE. The 800MHZ spectrum forms part of the so-called ‘digital dividend’ spectrum being freed up by TV broadcasters.
The U.K. spectrum auction announcement follows recent spectrum auctions in India and Germany, which raised $8.23 billion and EUR4.38 billion, respectively. France’s telecom regulator Arcep last month said it will award mobile spectrum for the country’s fourth generation mobile network before the summer of 2011.
It will also allow operators to ‘refarm’ existing 2G spectrum in the 900MHz and 1800MHz bands for new 3G services. Existing 3G licenses will be extended indefinitely, though license holders will need to pay Ofcom an annual fee when the current licenses expire in 2021.
Cellular providers are expected to use FD-LTE in the 140 MHz of paired frequencies in the 2.6 GHz band. Mobile providers in the UK include; O2 – 24.2%, Vodafone – 21.2%, Orange – 20.8%, T-Mobile – 15.3%, Virgin Mobile – 6.2%, and 3 – 5.9%
Vodafone spent a total of GBP2.97 billion on two spectrum auctions in India and Germany this year. They welcomed the U.K. government’s decision.
“This is a smart move from the new government, which has taken the time to consider the complex and far reaching implications of spectrum allocation in the U.K.,” Vodafone UK Chief Executive Guy Laurence said, adding the company will work with Ofcom to ensure the auction is fair and timely.
Everything Everywhere, the company formed to run the joint venture between T-Mobile and France Telecom’s Orange in the U.K., began operations on 11 May 2010. It is planned that eventually the networks of Orange and T-Mobile will be integrated, with both brands continuing to provide distinct products and services. The company is reviewing its position on the spectrum auction, a company spokesman said.
O2 welcomed the move to allow it to use its 900MHz spectrum for 3G, but Three, the UK’s smallest operator, said that it could affect competition.
The unpaired 40 MHz in the 2.6 GHz band is expected to attract new wireless broadband providers, such as British Telecom. In India, that chunk of spectrum largely shifted from Mobile WiMAX technology to TD-LTE. What technology the spectrum bidders will actually use is still unknown.
The auctions of new spectrum in the UK have been delayed several times, most recently when the previous UK government failed to secure parliamentary approval to begin the process. According to a Financial Times report today, some analysts believe that such delays have seen the UK fall behind the rest of Europe in releasing the new bandwidth.
“Ofcom has been trying to auction the 2.6GHz spectrum for three years now,” said Lee Sanders, a partner at Analysys Mason. “Six other European countries have awarded the spectrum while Ofcom has been struggling. From the industry’s point of view, this is welcome news to get things moving finally. But any potential new entrant may be concerned that this is still going through without any new changes to what was originally planned.”
Taiwan, with a land area of a mere 32,260 square kilometres (13,892.0 sq mi), has no less than six WiMAX operators on the island using 2.5GHz WIMAX licenses awarded in July 2007 – three for the northern part of the island and three for the southern part.
Taiwan’s government has made WiMAX a priority to accelerate time-to-market, making Taiwan the worldwide IT test bed and application demonstration center.
The WiMAX operators include; First International Telecom (FiTel), Tatung InfoComm, Global Mobile, Vee Telecom Multimedia, VMAX, and Far EasTon.
VMAX (below), launched a free Wimax service to taxi passengers in Taipei last month while Global Mobile plans to roll out WiMAX throughout Taipei by the end 2010.
China Mobile, the world’s largest mobile network operator, signed a deal with Taiwanese operator Far EasTone to jointly develop a next generation TD-LTE mobile network in Taiwan for testing purposes, the companies said in a joint statement.
Intel remains committed to WiMAX despite a controversial office restructuring plan, insists Intel. The chip makers commitment to WiMAX was called into question in June when news emerged that the chip maker closed its WiMAX Program Office in Taiwan.
Intel is a partner of leading WiMAX service providers in Taiwan and has promised to invest US$500 million over five years in the sector under a deal with the Ministry of Economic Affairs signed in 2008.
British Telecom operates BT Openzones throughout the UK, although it doesn’t have a mobile presence. BT was expected to pursue WiMax 2.6GHz licenses in the UK, but it’s now anyone’s guess — especially with the movement towards TD-LTE in India. Still, a lot can happen in a year.
Intel has spent millions of dollars developing WiMax, most notably its investment in Clearwire, which is building a WiMax network across the US.
Related Dailywireless articles include; Intel: LTE Not Nail in Coffin, India’s Broadband Auction: It’s Done, India’s Broadband Auction: No Free Lunch, TD-LTE Gains Momentum, WiMAX Forum: Not Dead Yet, Yota Dumps WiMAX
German 4G Auction: It’s Done, Auctions Winding Down in Germany & India, Germany 4G Auctions Begin, Europe to Follow
