Ofcom to undertake a Strategic Review of Digital Communications

Ofcom, the Super Regulator, is holding a Strategic Review of Digital Communications to promote competition and investment in converged digital communications services.

This is mainly concerned with infrastructure services such as broadband, but will also cover mobile 4G and future 5G services and "over-the-top" services (i.e. services deliver on top of Internet services such as VoIP, messaging systems such as WhatsApp which is replacing SMS, etc).

Ofcom last held a review 10 years ago after BT's infrastructure operation was separated into a distinct entity (BT Openreach, though still part of BT Group).

There have been many changes since the last review such as the merger of T-Mobile and Orange into EE (which has subsequently been purchased by BT) and consolidation in the ISP market (02, Tiscali, AOL, Be, Easynet).

Since 2005

• broadband adoption has increased from 31% to 78%
• take-up of bundled services has risen from 29% in 2005 to 63% today
• significant commercial and public sector investment in superfast broadband has resulted in 78% availability five years after deployment started. Adoption of this new service is now 27%
• mobile broadband availability has increased significantly, with 3G increasing from 82% to 99% of premises, and 4G services available to 73% of premises. Mobile broadband take-up is now 67%
• new entrants have shown strong growth in some areas (for example, local loop unbundling now accounts for 44% of broadband connections, up from 17% in 2005)

While Ofcom can not predict the overall output it will likely encompass

• Efficient investment: How can incentives for efficient private sector investment and innovation be maintained and strengthened, to ensure widespread availability and high quality of service?
• Competition: What should be the focus of competition policy in future networks (the 'enduring economic bottlenecks')?
• Deregulation: What is the scope for deregulating networks and services downstream of any 'enduring bottlenecks'?

Ofcom is planning to complete the review by Summer of 2015.

Ofcom ups the power in the 1800MHz band

Ofcom, the Super Regulator, has made a statement allowing 1800MHz licensees to increase the power from 62dBm to 65dBm.

The current licensees are 1800MHz (1805 - 1876.7 MHz) licensees are: -

• Telefónica: 1805.1 to 1810.9 MHz
• Vodafone: 1810.9 to 1816.7 MHz
• H3G: 1816.7 to 1826.7 MHz (plus 1826.7-1831.7 from October 2015)
• EE: 1831.7 to 1876.7 MHz (plus 1826.7-1831.7 until September 2015)

The 1800 spectrum is used for downlink bandwidth and the operators use it for LTE services, though it could also be used for WiMAX.

This should allow for increased range of LTE services (i.e. mobiles from base stations).

Ofcom proposing upping power on 1800MHz bands

Ofcom, the Super regulator, who look after radio spectrum is proposing to allow increasing the transmit power on the 1800MHz PCN band. Ofcom varied the original licenses so the band could be used for UMTS, LTE and WiMAX services. The new variation would allow a 3dB to 65 dBm per carrier for 3G and 3dB to 65dBm on the 5MHz channels for LTE and WiMAX.

EE Limited (“EE”), Hutchison 3G UK Limited (“H3G”), Telefonica UK Limited (“Telefonica”) and Vodafone Limited (“Vodafone”) have all requested that their 1800 MHz licences be amended in this way.

Ofcom's preliminary verdict is to allow these variations, however the results of the consultation will be taken into consideration.

Any stakeholders may respond to the consultation on-line.

Ofcom makes more spectrum license exempt

Ofcom, the Super regulator that looks after radio spectrum amongst other things, has made more spectrum license exempt.

In the UK there is no such thing as unlicensed spectrum and all devices (whether they broadcast or receive radio transmissions) must be covered by a license as per the Wireless Telegraphy Act. Ofcom can issue a Standard Instrument (really an Act of Parliament) to cover certain frequency bands and uses making that spectrum license exempt, which means if the equipment is used as per the SI, it doesn't need a specific license.

Ofcom has made new spectrum available for SRDs (short range devices) such as range finding equipment for cars. There is now 5MHz of spectrum available between 10.575 to 10.6 GHz which will add to the existing range of 10.577 to 10.597 GHz and this came into force on 26th June 2013.

The existing band 10.675 to 10.699 GHz can continue to be used by existing systems, but it will be closed for new systems on 30 December 2014 giving manufacturers 18 months to switch to the new band.

Mobile terminal handsets using WiMAX or LTE in the 800MHz, 2011MHz and 2.6GHz bands will be license exempt (when connected to a licensed mobile network i.e. BT, EE, 3UK, O2 or Vodafone).

Various satellite terminals will also be license exempt in the 1518 to 1525 MHz, 1525 MHz to 1559 MHz, 1626.5 MHz to 1660.5 MHz and 1670 to 1675 MHz bands.

EE and 3 may share 800MHz spectrum

Both EE and 3UK won 2 x 5MHz chunks of 800MHz spectrum in the recent UK spectrum auction for deploying LTE/4G mobile services. O2/Telefonica and Vodafone both won 2 x 10MHz chunks (with O2 having a coverage obligation).

EE currently has deployed LTE in their 1800MHz spectrum and they will relinquish some of this (2 x 15MHz) to 3UK by the end of 2013 when 3UK can deploy their own LTE services.

Generally the minimum requirement to deploy LTE is a requirement of at least 2 x 10MHz, so the two lots of 2 x 5MHz may cause EE and 3UK issues, so they are considering joining their efforts and sharing their joint spectrum, giving them access to a joint amount of 2 x 10MHz.

Currently this is just in the planning stage and it may not be technically feasible, though there is no reason why it shouldn't be.

Ofcom announces 4G frequencies awards

Ofcom, the super regulator today announced the awards (and subsequent prices) for the 4G spectrum awards. Everything Everywhere Ltd, Hutchison 3G UK Ltd and Telefónica UK Ltd (O2) did not have to pay anything following the original auction and awarding of their spectrum.

Niche Spectrum Ventures Limited (a subsidiary of BT Group plc) paid £15,061,179 to be allocated the spectrum bands 2,520 to 2,535 MHz and 2,640 to 2,655 MHz.

Vodafone Limited has paid £8,060,020 to be allocated the spectrum bands 801 to 811 MHz and 842 to 852 MHz, and an additional £4,039,123 to be allocated the spectrum bands 2,500 to 2,520 MHz and 2,620 to 2,640 MHz.

O2 was awarded 811 to 821 MHz and 852 to 862 MHz in the 4G spectrum award and has an obligation to cover 98% of the UK population by 2017.

The original auction raised £2,341,113,000 for the UK Treasury, this additional bidding has raised an extra £27,160,322 bringing the total raised to £2,368,273,322 for the UK coffers.

The licenses are now free to deploy 4G (LTE) services on these bands.

Last week Ofcom announced the winning bidders for 4G spectrum and amounts bid for it.

Everything Everywhere Ltd	2 x 5 MHz of 800 MHz and 2 x 35 MHz of 2.6 GHz	£588,876,000
Hutchison 3G UK Ltd	2 x 5 MHz of 800 MHz	£225,000,000
Niche Spectrum Ventures	2 x 15 MHz of 2.6 GHz and 1 x 20 MHz of 2.6 GHz (unpaired)	£186,476,000
Telefónica UK Ltd	2 x 10 MHz of 800 MHz (coverage obligation lot)	£550,000,000
Vodafone Ltd	2 x 10 MHz of 800 MHz, 2 x 20 MHz of 2.6 GHz and 1 x 25 MHz of 2.6 GHz (unpaired)	£790,761,000

Ofcom proposes to allow 4G on all 2G and 3G bands

Ofcom, the Super regulator, has opened a consultation to allow the liberalisation of all existing 2G and 3G bands so they can also be used for 4G (LTE) services.

This would mean O2 and Vodafone can refarm both their 900MHz 2G spectrum and their 2.1GHz 3G spectrum, EE (the combined entity of Orange and T-Mobile) have already started refarming of their 1800MHz spectrum, but they will be allowed to also refarm their 2.1GHz 3G spectrum. 3UK only have (currently) 2.1GHz 3G spectrum but will be able to refarm this and when EE transfer around 25% of their 1800MHz spectrum to 3UK they will also be allowed to use this for 4G (though this is not expected to happen until September 2013).

This is separate from any spectrum that is currently being auctioned (800MHz and 2.6GHz) though Ofcom has not yet announced who is bidding for what spectrum.

3UK have announced that when they launch 4G services, they will not differentiate on price between 4G and 3G services. The consultation is available here and interested stakeholders can respond on-line.

Ofcom announces bidders for 800MHz and 2.6GHz auctions

Ofcom the super regulator that covers amongst other things radio spectrum has announced the bidders that have been accepted for the 800MHz and 2.6GHz spectrum auctions (a total of 250MHz is being made available). The details of who is bidding for what has not been made available.

Each of the following paid a £100,000 deposit and the actual auction will take place in early 2013.

• Everything Everywhere Limited (UK)
• HKT (UK) Company Limited (a subsidiary of PCCW Limited)
• Hutchison 3G UK Limited
• MLL Telecom Ltd
• Niche Spectrum Ventures Limited (a subsidiary of BT Group plc)
• Telefónica UK Limited
• Vodafone Limited

The four existing mobile network operators (MNOs) EE, 3UK, O2 (Telefonica) and Vodafone were expected to bid and will probably bid for the 800MHz spectrum.

BT was a preferred outsider and will probably be bidding for 2.6GHz spectrum.

HKT's parent PCCW already has a nationwide 3.4GHz license (but it's a weird LTE band) but they have launched an LTE-TD wholesale service in the London area, so they may well bid for 2.6GHz spectrum as at least this is a common worldwide LTE band.

MLL already have a low power GSM license and also will probably have bid for a 2.6GHz license, especially as they are developing their own LTE stack (via a 3rd party).

Next year Ofcom will announce which bidders bid for what spectrum.

Ofcom announces date for 800MHz and 2.6GHz auctions

Ofcom, the super regulator has announced that the auction for the 800MHz and 2.6GHz bands will commence on December 11th 2012.

The new regulations (pdf) covering the auction (know as a Standard Instrument) has been published and will come into force on November 23rd 2012.

Ofcom is proposing to auction the following lots: -

Lot Category	A(i)	A(ii)	B	C	D(i)	D(ii)	E
800 MHz 2x5 MHz	800 MHz 2x10 MHz (with coverage obligation)	1800 MHz 2x15 MHz (Divestment)	2.6 GHz 2x5 MHz (standard power)	2.6 GHz 2x10 MHz (shared low power)	2.6 GHz 2x20 MHz (shared low power)	2.6 GHz 5 MHz (unpaired)
Ofcom’s proposal	£225m	£250m	£225m	£15m	£3m per bidder, £30m threshold	£6m per bidder, £60m threshold	£0.1m

Lots A(i), A(ii) and C are suitable for generic mobile network operator LTE services, lot B is now irrelevant as EE have divested this spectrum to 3UK.

The low power bands D(i) and D(ii) are more suited to companies that have infrastructure and can offer femto cell type services (probably on a wholesale service to the main operators - for network offload), though new entrants could come in and offer innovative localised LTE services.

Lot E is probably suited to an operator who wants to offer broadband services (not using LTE which requires paired spectrum).

This means the minimum bid (if there only 1 bidder each for the low power license) is £499.1m, and if there are 10 low power bidders £580.1m. Obviously these are Ofcom's minimum bid values and the actual values could increase substantially.

Ofcom have also valued the 800Mhz significantly more than the 2.6GHz spectrum (as it has better propagation characteristics and therefore it's easier to cover large areas of population).

Ofcom agreed to move forward the auction after O2 and Vodafone threatened to take Ofcom to judicial review after allowing EE to offer LTE services on their 1800MHz spectrum, however O2 and Vodafone have no guarantees that they will win a license in either 800MHz or 2.6Ghz (though Ofcom can assess bidders not to be suitable to bid - but based on their stability etc).

Let the fun begin.

EE releases LTE charges

EE the new name for Everything Everywhere has announced its plans for devices using their LTE bands. EE got permission from Ofcom to use their 1800MHz spectrum for LTE earlier this year and after successful negotiations with the other Mobile Network Operators (and selling off some of the spectrum to 3 UK) they will be launching on Oct 30th.

The prices are at a premium though and EE is charging more for their LTE tariffs than on their 3G bands.

If you want a LTE devices, tariffs are: -

500MB	£36
1GB	£41
3GB	£46
5GB	£51
8GB	£56

SIM only deals for people with existing devices are: -

500MB	£21
1GB	£26
3GB	£31
5GB	£36

As well as a premium EE are imposing heavy data limits and every extra 2GB costs £15 per month.

Though LTE will allow faster downloads of content, EE is effectively limiting how users can actually use their services unless it's for corporates who are willing to pay the excessive charges for data use (though voice and SMS are unlimited).

EE to offer LTE for end of October

EE (the new brand that was Everything Everywhere) is to launch their LTE service on their 1800MHz spectrum by end of October 2012 covering 10 cities on launch and a further 6 by the end of the year. EE have now started selling LTE capable phones including the iPhone 5, Samsung Galaxy SIII LTE, Nokia Lumia 920, Nokia Lumia 820, HTC One XL and the Huawei Ascend P1 LTE. The launch was delayed by complaints by Telefonica/O2 who didn't like Ofcom's decision to allow EE to refarm their 1800MHz spectrum which would in reality give them 12 to 18 months advantage as the only UK network to be able to offer LTE services (Vodafone didn't like it much either, but were less vocal). After Government intervention where O2/Vodafone agreed not to take legal action against Ofcom and EE agreed to delay the LTE launch until the dispute was resolved. It seems that Ofcom and the Government have agreed to push forward (slightly) the 800MHz and 2.6GHz spectrum auctions and move people out of the 800MHz spectrum more quickly so that these bands can be released for LTE use early in 2013. 800MHz is extremely valuable (it was the old analogue TV band) as it has extremely good propagation characteristics (i.e. it can penetrate buildings well) so is good for wide coverage in rural areas. The 2.6GHz spectrum has poor propagation characteristics though it suits urban areas where high data bandwidth is required. Both O2 and Vodafone are expected to bid for both bands. 3 has purchased the excess 1800MHz spectrum that EE had to sell off as part of the merger (as agreed with the European Competition Commission), however they don't actually get it until late in 2013 (which was the deadline for EE to get rid of it). Though it's likely that EE's launch will go ahead, there could still be problems in future as the operators could still mount legal battles. Another possibility is that a new entrant will try and land grab spectrum which could leave O2 and Vodafone out in the cold.