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.

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

Sky buys O2 Broadband

BSkyB the media giant has agreed to acquire O2/Telefonica's O2 broadband service (this also includes the Be broadband service that O2 originally acquired to launch their broadband services). Sky will initially pay Telefonica £180m followed by another £20m following the successful migration of the customer base.

O2/Be have 560,100 broadband customers which added to Sky's 4,235,000 customers gives them 4,795,100 customers and pushes Sky into 2nd place in the UK broadband market following BT Retail with 6,569,000 and putting VirginMedia into 3rd place with 4,465,000.

The acquisition also covers O2's fixed line telephony unit and will increase Sky's consumer offering.

Though there is overlap in terms of infrastructure, O2's network will be migrated on to Sky's existing network - though it's likely there will be some exchanges that O2 have unbundled that Sky haven't - which means Sky's LLU (local loop unbundled) network will grow slightly as they move into those exchanges.

Sky will maintain O2's LLU offering (i.e. wholesale broadband service offered to other operators), but O2's LLU business will be migrated on to Sky's network. This should be a 'good thing' as O2's network reach will increase as they get access to Sky's unbundled exchanges, however some operators are worried that the quality of the underlying network will decrease and thus the customer experience may deteriorate.

The deal still has to get regulatory approval, but assuming there are no objections it should complete by April.

The added cash (which cant hurt as Telefonica/O2 has just spend a chunk on buying 800MHz spectrum in the recent 4G spectrum auctions) will be used to accelerate the rollout of 4G services.

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.

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.

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.