UK prepares to let 3G services run on 2G spectrum
September 27, 2007
The U.K. is considering letting mobile phone operators run 3G services
on frequencies reserved for 2G services, a change that could mean
better 3G coverage and lower costs for the public, the government’s
telecommunications regulator said Thursday.
The move by the Office of Communications (Ofcom) follows the expected
relaxation of a longstanding European Union (E.U.) restriction on
how certain frequencies could be used. A consultation period started
on Thursday and runs through Nov. 29.
Other European countries are undertaking similar moves to liberalize
their 2G spectrums, according to a spokesman for the GSM Association
(GSMA), a trade group for mobile phone operators.
A 1987 E.U. directive restricted use of the 900MHz and 1800MHz
spectrums second-generation services based on the GSM (Global System
for Mobile Communications) standard, which at the time was intended
to foster growth of mobile communications across Europe by ensuring
a large market for common hardware.
The European Commission has proposed allowing 3G in those spectrum
ranges: It says the original directive is now stalling growth of
3G services.
The proposal should become policy by the end of the year once it
is approved by the European Parliament and the E.U. Council of Ministers,
according to the Commission.
Operators across Europe have been running 3G services in the 2100MHz
frequency band for several years.
But opening up the 900MHz spectrum is key, as the lower frequencies
allow better penetration of buildings, Ofcom said. The signals also
carry further, so in rural areas fewer mobile phone masts are necessary:
Ofcom estimates that high-quality mobile broadband Internet services
could be provided with 10,000 fewer sites per operator.
In turn, consumers should see lower costs for 3G services, the
Commission has said. Finland and France are already trialing 3G
services in the 900MHz band, the GSMA spokesman said.
Market analyst Ovum estimates 300 million people will have 3G connections
in Western Europe by 2012 if 3G is deployed at 900MHz and 2100MHz.
That’s compared to only 235 million connections if 3G is restricted
to only 2100MHz. About 50 million have access to 3G today.
Operators will likely want to continue using the 2100MHz band,
as it has a higher traffic capacity than the 900MHz band, and so
is better for urban areas where there are more users.
In the U.K., Vodafone Group and O2 (UK) use the 900 MHz spectrum
but only for 2G services. Ofcom is suggesting letting the other
operators, Three, run by Hutchison 3G UK; T-Mobile; and Orange,
to have access to that band.
The spectrum would be auctioned, with Ofcom awarding licenses as
soon as 2009 and services starting by 2010, the regulator said.
Ofcom is also looking at removing some technology-specific restrictions
from the 1800MHz and 2100MHz bands, which could happen next year.
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