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

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.

Everything Everywhere sells spectrum to Three (but they cant use it)

Everything Everywhere (EE) the combined company made up to Orange and T-Mobile has sold off some of their 1800MHz spectrum to Three UK (3). The terms of the deal have not been specified.

EE has 2 x 60 MHz bands in 1800MHz and they were forced to relinquish some of this spectrum by the European Competition Commission (2 x 15 MHz chunks) and they have no done this by selling it to 3.

However there's a twist as 3 won't actually get hold of the spectrum until 2013 (which is pretty much the maximum time frame the Competition Commission allowed), which gives EE a whole year to offer 4G (LTE) services in the 1800MHz band and be a UK monopoly for 4G services (Ofcom granted EE a license variation to allow 4G services in EE's 1800MHz band earlier this week).

All of the other mobile network operators have cried foul play as they have to wait for spectrum to become available in 800MHz and 2.6GHz as part of the digital dividend, but Ofcom won't auction the spectrum until 2013 and it's not expected to be available until at least the end of 2013.

By offering LTE services it's likely devices such as the iPhone 5 and other smartphones and tablets will be able to use these frequencies as they're already used in Australia and some Asia Pacific countries. Though UK Broadband is also offering LTE on their spectrum, it's in a band that's not commonly used for LTE and they are having specific devices made to use it.

Everything Everywhere is allowed to offer LTE services

Everything Everywhere the merged efforts of Orange and T-Mobile have been allowed by Ofcom to operate LTE (Long Term Evolution) or 4G services in its 1800MHz spectrum.

All of the other Mobile Network Operators (MNOs) didn't want EE to be able to do this, but Ofcom have decided that it's in the public interest for them to do so, even though it may give EE a short-term competitive advantage. O2 have published their disappointment in this result.

EE currently have 2 x 60 MHz bands in 1800MHz though under the agreement with the competition commission they have to divest 2 x 15 MHz as part of its merger (leaving them with 2 x 45 MHz). Ofcom have allowed EE to utilise LTE on the full bands, not just the bands that EE will retain after the digital divide auctions expected next year (Ofcom will auction the 800MHz and 2.6GHz bands and EE's spectrum will become available as part of this).

It is rumoured that devices such as the iPhone 5 will be able to use LTE services in this band, so EE will be the only UK operator that allows full use of the iPhone's data capabilities.

Ofcom has also published a statement on the interference of LTE in the 800MHz bands which could affect TV services in the future, though their testing has shown that actual interference should be minimal for real use scenarios.

Ofcom's full statement is here.

BT installs a lot of WiFi

BT has installed 500,000 (HALF A MILLION) WiFi access points in London and the Olympic Park in Stratford to cope with the number's of users on site. When spectators are leaving one game and the next set arriving there can be up to 300,000 people on the site and that's a hard peak to cope with. Operators (Everything Everywhere, O2 and Vodafone) are offering their customers free access to around 4,000 of the WiFi access points to off-load the mobile networks which will be creaking under the loads. BT has installed around 3,000 miles of fibre and the network is carrying about 60GB/s (i.e. around 480Gb/s). BT has installed around four times the capacity that was available at the Beijing games.

Ofcom announces 4G auction

Ofcom the super regulator has published a statement on the forthcoming 4G auction of 800MHz and 2.6GHz spectrum.

The 800MHz spectrum has become available due to the switching off of analogue television services (the digital divide) while 2.6GHz was reserved for future IMT-2000 (3G) services.

The 800MHz spectrum will be auctioned as 2 x 30 MHz blocks (paired spectrum) while the 2.6GHz band will consist of 2 x 70MHz blocks and a 50 MHz single (unpaired) block. This spectrum amounts to an 80% increase on all spectrum allocated to date.

Existing spectrum holders can bid for increased allocations, though spectrum will be reserved for a new entrant (i.e. one that isn't Telefonica O2, Everything Everywhere and Vodafone), this new entrant could be Hutchison 3G (who currently do not have any 2G i.e. sub 2 GHz spectrum.

The 800MHz licensee will have to meet 98% indoor coverage which implies 99.5% outdoor coverage, by 2017. The licensee will also have obligations to cover 95% of the populations of England, Scotland, Wales and Northern Ireland.

Ofcom will not reserve any spectrum for low power localised services, though a low power provider can apply for a national license.

Ofcom is reserving spectrum portfolios for a new entrant, these are

Portfolio	800 MHz	1800 MHz	2.6 GHz
1	2 x 15 MHz
2	2 x 10 MHz		2 x 10 MHz
3	2 x 5 MHz	2 x 15 MHz
4		2 x 15 MHz	2 x 20 MHz

EverythingEverywhere have to relinquish 2 x 15 MHz paired spectrum as part of their arrangements with the EU when they combined T-Mobile and Orange. Ofcom have considered the request from EverythingEverywhere as to allow them to ref arm their 1800 MHz spectrum for LTE us independently from this spectrum auction and will announce its results later this year.

Ofcom has published a draft legal document which implements the auction rules, the consultation will close on 11th September 2012.

Ofcom will invite application to bid before the end of 2012 with the auction starting in 2013 and licenses awarded in March 2013.

Winners of spectrum are expected to roll-out LTE services on the new spectrum starting in the middle of 2013 with consumer services being available after that.

Everything Everywhere 4G LTE trial in Cumbria

Everything Everywhere (the combined Orange and T-Mobile mobile network operators) has been running a trial in Cumbria using LTE in it's existing 1800MHz spectrum. The trialists were made up of users from local businesses and they either used dongles or mobile routers. Speeds of up to 20Mb/s (download) were achieved, though this depended on the number of users per mast and distance from the mast. The area isn't well serviced by fixed line broadband which meant high speed mobile via mobile was a boon to users. EE have applied to Ofcom for a license variation to allow them to utilise LTE on their existing 1800MHz spectrum nationally and Ofcom have opened a consultation on whether to allow this. The other MNOs are objecting, though EE have to return some of that spectrum as part of their merger conditions.

Mundio seeks an injunction against EE

Mundio Mobile is a pan European Mobile Virtual Network Operator (MVNO) that operates using the T-Mobile Mobile Network Operator (MNO) network. Mundio operates the MVNO under the Vectone brand in the UK. T-Mobile combined with Orange in the UK to form Everything Everywhere (EE) in 2011 and after the merger they decided to consolidate operations and remove excess network infrastructure (such as radio masts) which should give them savings of around £3.5 billion by 2014. Mundio Mobile gained a low power GSM license in the UK through it's acquisition of Mapesbury Communications several years ago, which gave them a full GSM license (and entry into the GSMA). Now Mundio is seeking an injunction against EE to stop the consolidation ahead of a full trial next March to determine who is liable for any service disruption, and whether EE will be held to “specific performance” guarantees the court could impose. Mundio say the consolidation has caused it's users to receive poor or no coverage. EE wouldn't comment as the case is a current 'legal matter'.

Ofcom extends deadline to EE consultation

Ofcom has extended the deadline for stakeholders to respond to the consultation on whether to allow the variance on Everything Everywhere's (EE) 1800MHz license to allow WiMAX and LTE technologies. EE already have to give back some of the 1800MHz spectrum as part of the merger between T-Mobile and Orange and this could be used by another licensee for LTE/WiMAX services. There have been vocal complaints from other Mobile Network Operators (MNO) that this would give EE an unfair advantage by them being able to launch LTE services ahead of all the other UK MNOs. The deadline for respondents has been extended to May 8th 2012 and can be seen here.

Ofcom proposes to vary Everything Everywhere's 1800MHz license

Ofcom the regulator covering media, broadcasting, telecoms, radio and postal services has announced a consultation on the proposal to amend Everything Everywhere's (EE) 1800MHz licenses to allow the use of LTE and WiMAX technologies. The original license only allowed 2G (GSM, GPRS, EDGE) and then 3G services (UMTS). If this variation is granted, it's likely that EE will be the first mobile network operator to offer LTE national services in the UK and this may distort the market, though Ofcom do not believe this to be true. The consultation closes on 17 April 2012 and stakeholders can respond on-line.

BT and EE launch LTE trial (in Cornwall)

BT Wholesale and Everything Everywhere have launched a trial of LTE (long term evolution or 4G) services running in Cornwall.

The trial will support 200 users split between mobile and fixed users in an area where fixed broadband is currently unavailable.

The trial uses equipment form the Chinese vendor Huawei and will run until next year.

Cornwall is a convenient area to run these kinds of trial as there is poor fixed line coverage, the conversion from analogue to digital TV has already taken place (so the 800MHz spectrum is available) and even if they get a few things wrong, there's no one to interfere with anyway.

As a shared trial, BT and EE will be ensuring the equipment can share access to the two seperate networks.

Everything Everywhere and BT trial LTE800

BT and Everything Everywhere are trailing LTE (Long Term Evolution or 4G) on the 800MHz band in Cornwall. 100 mobile and 100 fixed users will take place.

800MHz is part of the spectrum that Ofcom are planning to auction this year which will is currently being used by analogue TV, though some areas have already switched over to digital so the frequencies are already clear. The whole of the UK will switch by 2012.

The trial will actually use 2 x 10MHz channels in the upper band (which Ofcom are considering how to license) and though LTE can theoretically speeds of up to 150Mb/s, Everything Everywhere have stated that users should expect between 2 and 40Mb/s.

The 800Mhz band is being auction in conjunction with the 2.6GHz band (with caps depending on what portions are being bid for) and there is expected to be considerable interest from both the existing mobile network operators and broadband providers (some of who will be new entrants).

It's not T-Om it's Everything Everywhere

Orange UK and T-Mobile UK will be officially joined at the hip on July 1st when the networks are combined with UK roaming between networks. The new company name is Everything, Everywhere which CEO Tom Alexander said "is their name, vision and ambition". T-Om (T-Mobile - Orange Mobile sounds better though), both the ORange and T-Mobile brands are being retained.

The combined company will have over 700 retail stores and command 37% of the UK market which equates to over 30m users, O2 come second with 28%, Vodafone with 23%, with 3 having a small percentage.

The networks will be fully integrated, any overlaps combined etc. The reduced management overheads (for the two networks and management teams) is expected to bring savings of around £3.5bn, this on a turn-over of £7.7bn is where it all starts to make financial sense.

If they can combine the best assets of both companies (rather than the worst) they have the potential to keep their combined lead and offer innovative new services in both the mobile and fixed markets (Orange has a reasonably large consumer broadband offering).