Telecoms regulator OFCOM has announced that this summer will see an auction of a large chunk of spectrum. The 2010-2025MHz and 2500-2690MHz band (known in the industry as 2.6 GHz) will be released on a ‘service neutral’ basis, meaning that OFCOM will not stipulate exactly what the spectrum should be used for, although there will be certain restrictions on uses that may cause interference.
It is likely that the auction will be hotly contested by telecoms companies providing wireless broadband services via Wimax and 3G LTE (Long Term Evolution) technology. Although it is growing quickly, wireless broadband in the UK is currently a relatively new and expensive market. However, with this 205 MHz chunk of spectrum becoming available, it is hoped that more UK telecoms companies will begin offering the service fostering a larger, more open and competitive market.
Wimax has been successful in some parts of the world where fixed line coverage is poor. However, in the UK and Europe, it is 3G and its successor 4G technology that is likely to be the dominant medium for advanced wireless technology.
Philip Rutnam, OFCOM’s director in charge of spectrum policy, said that this spectrum release forms part of the regulator’s strategy to "release around 400MHz of prime spectrum to the market over the next few years", and "will create opportunities for fresh innovation, new services and competition for the benefit of consumers in the UK."
To view the terms of the auction and further information on the announcement, go to OFCOM’s website.
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