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3GScottishUser
10th December 2006, 11:33 PM
Ofcom will fire the starting pistol for a new auction of third-generation (3G) mobile spectrum when it lays out its plans for the eagerly awaited sale this week. But the Treasury is thought likely to raise only about a tenth of the £23 billion in licence fees that it raked in the first time.

Companies including BT and the main mobile operators are preparing to return to the auction table as proposals for the use of the prime spectrum and details of how it will be sold will be laid out in a consultation paper. The telecommunications regulator, which has retained DotEcon and Analysys as consultants on the auction, will explain how it believes the band should be released to the market and how it should be used.

The initial sale of 3G licences, at the peak of the dot-com boom, attracted bids at levels that no one had thought possible. The operators — Vodafone, Orange, BT, T-Mobile and 3 UK — convinced themselves, during more than 100 rounds of bidding, that it was a “make-or-break” technology. As the technology and telecoms market crashed around them, they were left with significant debts and a technology that was, in those days, ill-formed. The splurge by BT — which spent about £10 billion on acquiring licences in Europe — was a significant factor in the debilitating debt that forced it to demerge its mobile arm, now O2.

Yet, aside from 3, the mobile operators began to market and advertise the service actively only last year. A study by Ofcom found that in the fourth quarter of last year fewer than one third of adults understood the term 3G. The new band originally was allocated for providing more 3G mobile spectrum and is known as the 3G expansion band. However, Ofcom will emphasise in its document that it will take a “technology-neutral” approach. The spectrum auction is also likely to attract providers of wi-max — fast-speed wireless broadband. BT has said already that it is “very interested” in the spectrum, which sits in the 2.6 gigahertz position. It could prove useful for the group’s push into converged products, such as its combined fixed and mobile phone. Canning Fok, the managing director of Hutchison Whampoa, the owner of the 3 mobile business, which pioneered 3G in the UK, declined to comment.

http://business.timesonline.co.uk/article/0,,9076-2497881,00.html

Ben
11th December 2006, 12:48 AM
Does anyone know how 2.6GHz is going to perform compared to 2.1GHz? Is it going to be even more short range? How about the ability to penetrate buildings? It only seems to be 900MHz that has any clout to it!

3GScottishUser
11th December 2006, 01:15 AM
Yes the higher the frequency range the poorer the performance but 2.6GHz is close to the 2.4GHz that we are familiar with for Wi-Fi.

If anyone decided to run a mobile phone service on this frequency range they would have to come to a roaming agreement with an existing network just as 3 did when they launched. The prospect might suit BT or NTL who already have MVNO agreements with Vodafone and T-Mobile respectively. Either could build their own network and continue to roam and offer services via their MVNO partners.

Of course the bandwidth could be used for Wi-Max which would compete with 3G services for mobile computer and PDA access.

Interesting....

Hands0n
11th December 2006, 07:03 AM
At least, this time, it will be a less rabid auction round. I'm not convinced that 3G [as we know it] needs any more spectrum. Giving it up to WiMax seems a sensible alternative, and I'm particularly interested in the "technology-neutral" approach of OFCOM. Too right too!

Ben
11th December 2006, 03:16 PM
Yes, technology neutral sounds promising - maybe someone will belt out a service that isn't patented to Qualcom ;)

Hey, maybe we should bid! :D

3g-g
11th December 2006, 04:13 PM
Get it on eBay! No reserve, start it at 99p!

Ben
11th December 2006, 06:00 PM
LOL! They should certainly auction off at least part of the available spectrum on eBay, that'd be fantastic! Mix things up a little ;) I don't fancy taking on A_Sarin, mind... especially not since miffed started leaving him negative feedback!

3GScottishUser
11th December 2006, 07:47 PM
Some details from the Ofcom Website:

In the consultation document published today Ofcom proposes to release the spectrum though two separate auctions.

The bands 2500-2690 MHz, 2010-2025 MHz will be packaged into a number of lots and auctioned together. Participants will be able to bid for multiple lots. The auction will be conducted online using a secure server and there will be a number of rounds to the auction.

The bands 2290-2300 MHz will be packaged as a single lot and auctioned though a sealed bid process.

Ofcom’s research into the bands has identified a number of potential uses of the spectrum. They include: mobile broadband wireless services, offering high-speed, high-capacity mobile data connections using technologies such as WiMAX; mobile multimedia services, such as mobile television; advanced mobile services using technologies such as UMTS and its evolutions; and mobile broadcast, such as wireless cameras for outside broadcasts and temporary or portable video links.

The potential uses – ranging from broadband to mobile television – reflect increasing convergence in communications services.


So plenty of scope then...

Ben
12th December 2006, 12:24 PM
Very interesting! But I wonder if other countries will also make the same spectrum available, or whether we'll end up seeing some mobiles needing to support yet another band (or more) for UK compatibility? I guess it depends on who gets what!