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| Friday, 27 July 2007 | |
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EC pushes for re-farming of 2G spectrum to bolster UMTS market…
In what is being seen as an acknowledgement that UMTS isn’t yet cutting the mustard the European Commission is proposing to re-farm the 2G GSM 900 and 1,800MHz frequencies for use by 3G and other high data rate wireless services. According to the EC, if its proposals become law, they will increase the number and choice of wireless services available, and will expand their geographic coverage to the benefit of all European citizens. The new EU measures will also reduce network deployment costs for “Radio spectrum is a crucial economic resource which must be properly managed across Basically the EC is proposing to repeal the GSM Directive of 1987 which allocated the 900 and 1,800MHz spectrum to GSM services. Together with the repeal of the GSM Directive, the EC is pushing for a new Decision that will allow new technologies to coexist with GSM in the said frequencies while preserving the continued operation of GSM in the EU. The new Decision has apparently been prepared by the Commission alongside national radio spectrum experts. Based on technical studies by In the Commission's assessment, the proposed measures will have a positive economic effect on the sector and promote the take-up of new wireless services. Estimates given by the sector itself suggest that in The proposed repeal of the GSM Directive requires the formal approval of the European Parliament and EU Council of Ministers. The Decision awaits formal adoption of the Commission. All measures proposed are expected to be in place by the end of this year. The EC spectrum re-farming initiative follows last month’s release of an Ovum conducted report commissioned by the GSMA that argued that the widespread deployment of 3G networks in the 900MHz GSM spectrum band, as well as the 2100MHz band, could add an additional 300mn people across Asia, Europe and Africa to the 3G market constituency by 2012. If implemented the EC initiative could raise the prospect of some sort of compensation being offered to those 3G-only operators - without 2G GSM frequencies - that have forked out big bucks for their UMTS spectrum (aka the 3 Group of companies). This has already been mooted in France where, earlier this month, the regulator ARCEP said that any 3G new entrant authorised following the application procedure for the fourth 2.1GHz UMTS licence would also have access to the 900MHz spectrum once it has been returned by the existing 2G operators. ARCEP also said that that the reuse of the 1,800MHz band in the four-operator configuration would be examined at a later date, with a timetable adapted to market demands. You would have to wonder, too, whether the realisation of the EC proposal might open a door for other non-3G mobile wireless service providers, an eventuality that the GSMA would probably not welcome. John Williamson |
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