Ofcom approves sale of spectrum to Vodafone and Hutchison 3G UK

Ofcom, the Super regulator has approved the sale of the 1452 - 1492 MHz from Qualcomm UK Spectrum Ltd to Vodafone Limited and Hutchison 3G UK Limited.

Vodafone got 1452-1472 MHz and Three got 1472-1492 MHz.

Ofcom didn't consider that these transfers raised sufficient competition concerns to justify further analysis.

As explained in an earlier article, Qualcomm made a tidy little profit.

Why the UK needs more ways to wiretap .... NOT

David Cameron has recently come out with the UK needs new laws to curb evil terrorists and as part of this process banning end-to-end security in messaging applications and putting back holes into encryption protocols so GCHQ and the Security Services can do more snooping than they already do.

Edward Snowdon has already shown how much the NSA and GCHQ already have been complicit in installing back doors in routers and other devices and they have talked with security companies to put back doors in existing systems.

They even built a (mini) GSM network so they could tap what various people were doing when they came to the UK (that pretended to be the normal networks, but intercepted all voice, text and data traffic, put it through their network first and then sent it on to the normal networks). That caused a bit of a row and the Germans didn't much like it (so much so they promptly made everyone in Government use Blackberry's which do support encryption and secure traffic).

The Government already has powers of intercept. It can force anybody that has infrastructure in the UK or operates in the UK to hand over data records (RIPA has been around for a while).

Cable and Wireless (now Vodafone) used to be a big player in International data pipes and a lot of their undersea cables land in a small bay in Bude, Cornwall. There's a little C&W building above the beach where the cables terminate and then shoot out to the rest of the UK. Oddly there's a GCHQ listening station right next door (allegedly GCHQ don't even have to tap the fibres, C&W just give them a direct split) and the listening station is just a big data centre that can hold 30 days worth of data and it's a big FIFO (first in first out). The bods at GCHQ can look at the connections (which is generally who was talking to who, whether that's a person talking to another person or a person to a particular website) and then drill into the actual connection data when it's interesting to them.

The US have a big 'listening' station at Menwith Hill (in the UK).

Unfortunately giving the Government more power to do interception and weaken encryption isn't going to help anyone. Encryption technologies tend to be the same whatever the application. So the same encryption that may protect a messenger protocol is also the same protocol used to protect the web protocol (i.e. https rather than http). By reducing the encryption (or worse putting back doors in) it's not just the messenger protocols that suffer, it's also the services that should be secure that are affected too.

The other main problem is that it doesn't really affect the terrorists that the Government want to stop. They are going to CONTINUE using encryption whether the Government wants them too or not. The UK can't mandate non-encrypted (or reduced encryption) outside the UK, so everyone who wants security moves their services to a place that does allow it.

Disallowing or reducing the effectiveness of encryption is not the answer to terrorism.

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.

C&W (Vodafone) and Urban WiMAX get 28GHz license variations

Ofcom has issued a statement with respect to the 28GHz Broadband Fixed Wireless Access (BFWA) licences of Cable and Wireless (now Vodafone) and Urban Wimax.

The licenses were due to expire on 31st December 2015 and now they will be made indefinite.

The licensees can use the bands for equipment that complies with Interface Requirement 2048 (IR 2048) in-line with other licensees.

From January 2016, there will be new pricing set which incentivises the licenses to utilise the spectrum. Pricing has not be set yet.

28GHz allows high bandwidth point-to-point links which can be used for backhaul and with Vodafone's purchase of C&W it makes sense to use their own spectrum for mobile backhaul.

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 starts 800MHz and 2.6GHz auction race

Ofcom, the Super regulator that looks after radio spectrum (amongst others) has today released guidance for applicants and bidders PDF) and application forms for the 800MHz and 2.6GHz spectrum auctions.

These are similar to recent other spectrum auctions and all applications must be received by Ofcom by December 11th 2012 and at the same time Ofcom must have received a £100,000.00 deposit (which is refundable if the bidder doesn't win or withdraws from the auction within the withdrawal timeframe).

Ofcom will have some time to ensure the validity of the application and applicant (they must pass tests to ensure they are valid applicants).

On the 2nd dat Ofcom will tell all bidders of other bidders in their group.

Ofcom then allow 4 days for bidders to notify Ofcom on any group overlaps.

Ofcom then has 3 days to notify successfully qualified bidders, publish them on the Ofcom website and notify them of the last day for withdrawal.

The last day for withdrawal is 2 days following publication.

Ofcom will then publish the list of actual bidders.

Ofcom will use an electronic bidding system which allows bids to be submitted in rounds (this all gets very complicated, especially when an additional opt-in round is added to the process). Ofcom will train bidders on the use of the electronic voting system.

It's expected that at least O2 and Vodafone will bid for the 800MHz spectrum, though 3UK may join in too as they don't have any sub 1GHz spectrum at present. The 2.6GHz spectrum (especially low power licenses) may be more of a jamboree with some unexpected players joining in.

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 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.

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.

Ofcom Telecom Complaints Q1 2012

Ofcom the Super regulator that covers telecoms, broadcasting, spectrum, media and the postal system has released details about Telecoms complaints in the period January through March 2012. This covers fixed line telephone, fixed broadband, mobile telephony and Pay TV services. Ofcom itself receives around 300 complaints per day, usually when a consumer can not resolve an issue with the relevant supplier. These reports are logged, while there are many more issues reported to the suppliers themselves that Ofcom never gets to hear of. Fixed line telephony: BT Retail, Sky, TalkTalk Group and Virgin Media of which TalkTalk had the highest number of complaints with Virgin Media receiving the least number of complaints. Most complaints related to billing and customer service issues. Fixed broadband: BT Retail, Sky, TalkTalk Group, Virgin Media and Orange Home. Again TalkTalk had the most complaints and Sky the least mainly about line faults and other service issues. Mobile telephony: 3UK, O2, Orange, T-Mobile, Vodafone and Virgin Mobile with Three getting most complaints and O2 least relating mainly to disputed charges and customer service issues. Pay TV services: Sky, BT Vision, and Virgin Media with Sky getting the least complaints and BT Vision the most mainly relating to their sales processes and problems with billing. The Ofcom summary can be found here.

Vodafone to speed-up 3G uploads

Vodafone is upgrading base-station software in 3 of its markets (UK, Spain and Italy) that should see uplink speeds increase by around 40%. The upgrades use software from InToTally which solves outer loop power control problems of CDMA and UMTS/HSPA networks. This is due to the way the base-station and terminals continually change their transmit powers to cope with varying network conditions which may not be optimal and the InToTally software changes the algorithms so the system works better. The software only improves the up-link speeds as it's the base-station that's being improved, for handsets to get improvements the InToTally software would need to be installed in them too, though InToTally say that mobile chipsets will incorporate their software within a year and Vodafone has enough clout to persuade handset vendors to adopt the software. Vodafone is also making an undisclosed investment into InToTally.

Vodafone offers £1.04bn CW

Vodafone has made an offer of £1.04bn ($1.7bn) in cash for C&W (Cable and Wireless Worldwide). This works out at 38p per share which is considerably higher than the original expected offer of £700m. Vodafone is seeing vastly increased mobile data traffic and this may be a defensive move to lessen it's reliance on BT who provide most of their backhaul. Vodafone also wholesales several BT business services, which they'll now be able to offer in-house. C&W also run a broadband LLU service for other providers and again this could be directly used to sell broadband to Vodafone's consumer base. Vodafone replaced all their DSL connections at cell sites with fibre from BT, these can also all be taken in-house using the significant assets of C&W's fiber network that covers much of the UK and in places like Scotland they have better coverage than BT (due to the historical acquisition of THUS Plc which was originally Scottish Telecom prior to the acquisition of Demon Internet). There's sure to be many problems integrating the two companies, though in the long term they gain access to a enterprise and consumer solutions and should deliver long term costs savings

Vodafone Home Gateway drops in price and becomes Sure Signal

Vodafone has renamed its home femtocell system from Vodafone Home Gateway to Sure Signal while also dropping the price from £160 to £50 for a one off payment. It's also possible to rent the Sure Signal box for £5 pm.

Femtocells are an easy way for Mobile Network Operators (MNOs) to reduce their backhaul requirements as they create small coverage areas with the femtocell which uses the customer's broadband connection to connect back to the MNO. As the femtocells are 3G, they'll see what frequencies are available in the area and use free channels thus co-operating with whatever the MNO has there in the macro network (2G femtocells are much more complicated and require frequency planning).

Though Vodafone haven't said why they're suddenly pushing femtocells again (the Home Gateway has been poorly marketed), it is likely that it coincides with the launch of the iPhone on their network and the considerable increase in data that it produces. By being able to alleviate the 'home' data use issue, they may be successful in maintaining the overall network stability.

In future Vodafone may even give Sure Signal devices away for free (and put them in busy areas like shops etc), they may even offer 'free' calls to home users to encourage them to install the gateways.

Vodafone competition generates over 1,000 application ideas

Vodafone's Competition to get ideas for Android applications has now reached over 1,000 entries.

The winner of the best idea will get £1,000 and an HTC Magic. There's only 6 days to go as the competition closes on the 20th of September.