Ofcom’s proposals for 4G mobile coverage

The communications regulator in the UK, Ofcom has come up with some proposals for 4G mobile spectrum to be made available in the UK. The new measures aim 98% coverage of the total population of the UK along with the promotion of healthy competition.

It is estimated that in Western Europe, the need for mobile data will increase more than 500% in five years. Smartphones and mobile data services like e-mail, video streaming, online mapping, messenger services and social networking contribute to this increase.

Currently, the country is switching to digital TV from analogue. Air waves in the 800 MHz band is being used by this ‘digital dividend’. At the end of 2012, 800MHz band together with higher frequency airwaves in the 2.6GHz band will be auctioned.
The ‘would be’ auctioned spectrum amounts to 75% of the mobile spectrum now in use.

During the second Consultation which was held between March and May 2011, Ofcom made an assessment, how the fight in the mobile communications market is going to be affected by 4 G spectrum. Based on these assumptions, Ofcom chalked out certain plans for 4 G auction with the aim of promoting competition in those markets. Ofcom has given due consideration to the responses to this Consultation, evidence submitted before it, and after final analysis, the regulator formulated its proposals for the auction. Today Ofcom called for a second Consultation for giving another opportunity for the stakeholders to comment on these proposals so that the regulator could take final decisions for the auction.

Ofcom during the March 2011 Consultation proposed to impose a condition on 800 MHz licences. The condition was that the license holders should rollout 4 G network to 95% of the population of the UK. In October 2011, the Government decided to invest 150 million Pounds in the communications sector where there is no mobile service or poor mobile coverage. A lion’s portion of this amount would be spent for the construction of mobile infrastructure where the commercial operators have little or no interest to step in.

Ofcom has proposed two options for the 4 G spectrum auction. One is that the licensees should cover 98 per cent of the UK population and the second option which is considered to have more potential is that 800 MHz operator should provide 4G coverage that matches existing 2G coverage to areas which are considered to be mobile not spots. The Government of the UK is investing 150 million Pounds to built mobile infrastructure which could support 4G coverage in these areas. This measure may help to extend coverage up to 98 per cent of the UK population. Ofcom thinks that the second measure is more feasible to provide broadband services to people who need it most.

The regulator of the communications services believe that if there are at least four nation wide communications operators, the consumers would be able to get communications services at a cheaper price. An operator will be forced to compete with national wholesale providers in the absence of right quality and mix of spectrum.

Taking in to consideration the responses to the Consultation, evidence and analysis, Ofcom has chalked out a number of options to promote competition in the communications markets. For this a portion of spectrum would be reserved.

Reservation of some spectrum in 2.6 GHz band is another proposal. This spectrum will be shared by a set of companies for delivering new mobile services to customers.

Ed Richards, the Chief Executive of Ofcom said that Ofcom is taking a very important step in the process of 4G spectrum auction. Ofcom has published its proposals which will have influence on the service provisions. He continued that in Europe, one of the most competitive mobile markets is the UK and the country will be benefited from 4G spectrum. The consumers in the UK would need to pay less for communications services and they will be offered many choices by providers. It is the objective of the regulator to promote competition among providers, promote innovation and investment. Ofcom has got another plan of enhancing mobile broadband to serve the regions that were underserved conventionally by networks.