Talks with Vodafone and O2 are holding up government
plans to rearrange radio spectrum allocations that would see
universal access to mobile connections running at 4mbps and up to
50mbps in urban areas within five years.
This emerged from the
final report of Kip Meek, the independent spectrum broker
appointed by the government to negotiate the release of 900MHz
spectrum (2G) held by the two mobile network operators (MNOs).
Meek said, "Discussions have shown that a negotiated solution to
2G refarming may not achieve the objectives and is very difficult
to conclude."
Communications regulator Ofcom proposed that Vodafone and O2
relinquish 2x5MHz of contiguous spectrum, and that if they could
not negotiate a deal the spectrum should be auctioned.
"Although neither 900MHz operator likes this proposal, and both
made clear that it would impose inconvenience on their customers
and substantial costs, at least one operator was satisfied with its
outcome," Meek said.
He said one operator in particular wanted to use its 900MHz
frequencies to deploy 3G mobile broadband (HSPA). It had become
clear that all the operators wanted to look at the issues
associated with 2G spectrum in the broader context of other
spectrum that is due to become available, namely 2.6GHz and
800MHz.
"A negotiated solution that used the proposed Ofcom imposed
solution as a starting point would not achieve this outcome." Meek
said.
He said that the two inducements on offer were an indefinite
licence term for the 2.1GHz licences and a more liberal regime for
infrastructure sharing. Vodafone and O2 welcomed them, but thought
them inadequate. "Infrastructure sharing is seen as something that
is likely to happen anyway if there is a sufficiently good economic
and commercial case."
Meek said it was "within the UK's grasp" to achieve mobile
broadband at around 4mbps across the UK as a whole, and more than
50mbps in many urban areas within five years.
This would bring innovation and new services in mobile broadband
and complement fibre-delivered superfast broadband. This would make
the transition to next-generation broadband services smoother and
faster, he said.
"The UK would be at the forefront of commercially-deployed
mobile technology around the world, delivering economic and social
benefits that far outweigh the costs."
Meek said he had identified a new imposed and a preferred set of
mechanisms. "These are likely to be refined and changed as they are
considered in greater detail," he said.
The government said it would respond to Meek's statements in the
final Digital Britain report, now expected on 16 June.
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