EU finally frees up 900MHz band for other uses

UK: Comment from Marcela Sirio, analyst at Ovum:

Running votes in parallel will mean benefits can be realised sooner
Following the European Parliament, the EU Council of Ministers approved the European Commission’s GSM Directive, which allows the 900MHz frequency band to be used by technologies other than GSM and GPRS, as previously established by the GSM Directive of 1987.

The final version of the updated directive and new guidelines setting out technical measures to allow the co-existence of GSM (2G) and UMTS (3G) systems on the 900MHz frequency band are expected to be released by September 2009; after that the EU member countries will have six months to implement the new directive. The directive will also facilitate the use of 4G high-speed broadband technologies to be deployed in the 900MHz band in the longer term.

Until now, the implementation of the new directive has been delayed because it was part of the ongoing framework review, which was held up because of controversy over the reinstatement of an amendment to the review.

By taking the decision to separate the vote from the telecoms package, the EC has avoided further delays to a process that is expected to bring savings of up to €1.6 billion through more efficient management of the radio spectrum.

A helping hand to digital strategies around Europe
The renewed directive has the potential to expand the rollout of wireless broadband services and give European countries an extra ‘push’ to elaborate on their existing spectrum re-farming plans.

The expansion of mobile broadband coverage is a topic that has been much discussed by the EU member countries, particularly the subject of widening the Universal Service Obligation (USO) to include broadband.

Wireless solutions would fit ideally with the desired expansion of broadband access in rural areas and EU policy targets of having ‘broadband for all Europeans by 2010’ and ‘high-speed Internet broadband for all Europeans by 2013’.

Because of the ongoing delays to the spectrum re-farming process, most countries in Europe have already developed their spectrum re-farming plans -– although with this development regulators should spring into action.

Measure adds difficulty to UK’s unequal spectrum holding issue, but at the same time gives it a deadline
The new directive comes at a good time for countries such as Finland, France, Germany and the UK, adding more clarity to their recently launched digital strategy plans.

However, at the moment the release of spectrum is probably much more relevant to the UK than to other European countries. Since 2007 the country has been trying to solve the problem of unequal spectrum holding between its operators.

While regulator Ofcom is not obliged by the directive to consider these factors, it does have an obligation to promote the interests of consumers. Currently, Vodafone and O2 hold the entire 900MHz spectrum band, and if the spectrum is liberalised simply in the hands of the incumbent operators then Orange, T-Mobile and 3 UK could potentially be left at a serious competitive disadvantage.

As a result of Digital Britain, the Department for Business, Enterprise & Regulatory Reform (BERR) will provide directions to Ofcom on how to act in regards to the spectrum holding.

The good news is that progress has been made, with the independent spectrum broker’s proposal to establish spectrum caps to solve the inequality of holdings. With this renewed sense of urgency and extra push, the UK’s long-running saga may finally come to an end.