Ofcom

U.K.'s 3 hit by competition authority ruling

Thu, 22 May 2008 06:59:54 -0400

U.K. mobile-phone operator 3, owned by Hong Kong-based Hutchison Whampoa, may be crippled by a decision from U.K. competition regulators that will require the operator to cut by 45 percent the charges it imposes on its competitors for interconnection fees.

3 had warned the Competition Appeal Tribunal, which heard 3's appeal against the original Ofcom ruling on the matter, that such a move would significantly reduce its revenue between 2007 and 2011. The tribunal said that argument was of "limited relevance." 3, which launched in 2003, has yet to report a pre-tax profit. 3 shook up the U.K. market in 2006 by offering flat-rate 3G data service.

To read more:
- check out this article from FT.com

Related stories:
3 launches flat-rate mobile Skype, Sling, Orb. See this story on 3's new 3G strategy
3 to come to U.K. market with cheap HSDPA. See this report on 3's U.K. HSPA strategy

WiMAX could be shut out of U.K. auction

Thu, 24 Apr 2008 06:59:54 -0400

Speculation is growing that WiMAX players may have a tough time getting spectrum in the U.K.'s upcoming 2.6 GHz spectrum auction. The Office of Communications has allocated a certain amount of spectrum for time division duplex (TDD) and a certain amount of spectrum for frequency division duplex (FDD). WiMAX, of course, uses TDD and LTE uses FDD. Because of this there is concern that U.K. mobile operators will snatch up the TDD spectrum to keep WiMAX from being deployed by a new entrant.

According to Unstrung, the rules outlined by OfCom leave considerable risk of spectrum hoarding. However Ofcom says that the spectrum rules are designed to promote competition because the agency hasn't designated the spectrum for a specific use and there are no rollout obligations.

It wouldn't be surprising if the WiMAX Forum comes out with an announcement saying an FDD version of WiMAX in the 2.6 GHz band is in the works.

For more about :
- see this article from Unstrung

Related articles:
Ofcom to free up 2G spectrum for 3G use. Report on Ofcom
Ofcom to release AWS spectrum Ofcom report

ALSO NOTED: Ofcom gives 10 broadband spectrum; Vocera releases new WiFi phone; and much more...

Mon, 25 Feb 2008 06:59:51 -0500

> Ofcom awards 10 companies spectrum in the 10 GHz to 40 GHz band. Article

> A small increase in U.S. broadband adoption would have an annual economic impact of $134 billion, according to a new study. Article

> Vocera introduced the T1000 WiFi phone for mobile workers. Article

And Finally... Japan successfully launched an experimental satellite designed to provide high-speed Internet access across Asia. Article

ALSO NOTED: India's BSNL plans $750M investment in WiMAX; Orange partners with The Cloud to extend WiFi access; and much more..

Mon, 26 Nov 2007 06:59:51 -0500

> According to reports coming out of Brazil, long distance and data services provider Embratel expects to invest $600 million through March 2008 on WiMax technology. Article

> Bharat Sanchar Nigam Ltd. (BSNL) plans to spend $750 million on WiMax networks to cover one sixth of India's 1 billion-plus population, and has already issued the first tender for WiMAX equipment. Article

> UK mobile operator Orange partnered with WiFi hotspot operator The Cloud to extend Orange users' WiFi access to more than 10,000 hotspots. Article

> UK telecom regulator Ofcom agreed to let UK Broadband, the company that owns the 3.5GHz spectrum license, supply WiMAX service to mobile devices as well as for access for homes and offices. Article

And Finally... A study from Nokia says women are better multi-taskers than men. Article

Ofcom announces 900 MHz refarming plans

Mon, 24 Sep 2007 06:59:54 -0400

UK telecom regulator Ofcom announced plans to allow for the refarming of 2G spectrum for other services and technologies. Countries such as Finland, France and Portugal have already been pushing for the deployment of UMTS in the 900 MHz band.

For more about Ofcom's refarming plans:
- read this article from telecoms.com (sub. req.)

Related articles:
Ofcom proposes long-range 3G
Ofcom plans mobile phone spectrum auction

Comments from Steve Kennedy

Mike Dolan — Tue, 19 Dec 2006 13:06:49 -0500

Comments from Euro Tech News communication maven Steve Kennedy: Well since you mentioned it, I thought I better comment: [In the OFCOM auction of six years ago], 2010-2025 MHz was meant for self provisioned IMT-2000 services, however no operator in the UK has launched any such service. Other operators in Europe have. 2500-2690 MHz was reserved in case the new entrant (in the UK's case "3" didn't make it) or expansion was required for the existing networks. Since 3G hasn't really taken off to the extent that the operators hoped it would, they probably don't actually need it--that doesn't mean they won't put up a good fight saying they should have it. OFCOM has made proposals of auctioning off the spectrum in 16 chunks: One in 2010-2025 MHz, 14 in 2500-2690 MHz, and 1 in 2290-2300 MHz. OFCOM wants to license this as technology-neutral spectrum (in line with EU and OFCOM policy). This could be used for 3G, WiMAX, or multimedia distribution (or something completely innovative). These bands are all harmonized European bands and OFCOM abides by EU policy, which means they'll need agreement from CEPT (sort of European ITU, made up of 47 countries) and RSC (the EC version, which is made up of 25 member states). Luckily, CEPT are already discussing this and are expected to make a decision in summer 2007 with RCS following shortly after (since CEPT is a superset of RSC, RSC should just follow their decision). So OFCOM hopes to make the spectrum available in fall 2007, but it could easily be delayed to 2008--getting 47 countries to decide on anything can take a long time. That's where the FCC have a much easier time of it ... 1 organization covering a continent. BT need a wireless solution to deliver high bandwidth services (as part of their 21CN initiative) to rural areas (IPTV, VoIP, etc.). Therefore, they are interested in any spectrum--it's just that WiMAX is the buzz of the moment, the technology doesn't really matter except standardized equipment becomes much more cost effective. It's also likely they are still talking to Pipex (or Pipex Wireless) which recently got Â£21 million funding from Intel to deliver a WiMAX solution in the 3.5-3.6 GHz band (though Pipex's license currently only allows fixed wireless access, i.e., fixed links, and doesn't allow for 802.16e mobile WiMAX--though Pipex will be trying to get the license amended. As an aside, Pipex gained their license from purchasing another company (FirstNet), which had actually acquired Tele2 (who initially had the license)--it was zero rated on the books!!! BT may well also be in discussion with PCCW, which own a national 3.4 GHz license (again, currently only allowing fixed links). Running a network is expensive and a lot of the costs are backhaul. BT have the most comprehensive network in the UK (they own 85 percent of the UK infrastructure), so for them to run services on their own network makes life much easier (ignoring regulatory issues). Whether they bid or acquire will come down to commercials.

Editor's Corner

Mon, 18 Dec 2006 19:01:38 -0500

On moral hazard, WiMAX, and the UK
In 1963, the economist Kenneth Arrow developed the theory of moral hazard. The theory was an effort to capture the observable phenomenon that the redistribution of risk changes people's behavior. For example, say private insurers refuse to insure buildings in flood zones, or price the premiums so high that people cannot afford to buy policies, so the government steps in as insurer of last resort, assuring dwellers in flood zones that it--the government--would, beyond a certain dollar amount, cover their losses in case of floods. Economists would argue that by lowering the cost and lessening the risk to people who insist on living in areas prone to floods, the government now finds itself encouraging morally hazardous behavior--people take undue risks in choosing where to live because much of the costs of the risk have been redistributed away from them.

It occurs to us that we are running the risk of moral hazard when writing about WiMAX in the UK: We know by now that if we misstate a fact or offer the wrong analysis, Euro Tech News communication maven Steve Kennedy will correct us. In evidence: Last Thursday, in the WiMAX Beat, we wrote: "We are taking a risk here in writing about WiMAX in the UK (the risk: Misstating something and having Steve Kennedy, who knows more than we do on anything relating to WiMAX in the UK, send in a correction)." We took the risk and wrote about BT trying to ride back into the mobile market on the back of an auction for a WiMAX-suitable spectrum. Steve dutifully wrote back to make the necessary corrections:

Check out Steve's comments here.

See also Steve Kennedy's Digital-Lifestyles.info article

ALSO: The OFCOM auction of six years ago raised £22.5 billion pounds (or, according to some sources, £21 billion)--an order of magnitude more than the "£22.5 million" to which we mistakenly referred.

Looking back, looking forward
We thought we would use this last issue of the year to highlight what we take to be the main WiFi-related trends of 2006, and offer some predictions about what will be the main stories of 2007 (mindful, of course, of Yogi Berra's adage: "Prediction is very difficult, especially about the future"). An unscientific poll told us that many of our readers are already away from their offices, with their minds rightly set on the coming holidays. Rather than in this issue, we will offer our thoughts on WiFi and WiMAX in the past year and the one to come in the first issues of FierceWiFi and the WiMAX Beat next year.

Until then, happy holidays and a happy, healthy and productive new year to all! - Ben

ALSO NOTED: Cohda begins Adelaide trial; Samsung's plasma TV has built-in WiFi; and much more...

Mon, 18 Dec 2006 19:01:31 -0500

> Cohda Wireless has begun a trial wireless deployment of the company's mobile broadband wireless technology in Adelaide. Report

> Kansas may not be leading the nation in WiFi deployments, but it is not as far behind other states as you would be led to believe. Report

> Samsung is to release a plasma TV with a built-in hard drive and a WiFi receiver (HP-TS064) in the coming CES 2007 show. Report

> Beceem Communications has completed certification by Microsoft for its chipsets running on PCs and laptops with the Windows operating system. Unstrung report

> We have reported that BT was interested in bidding on WiMAX-suitable spectrum OFCOM will be auctioning off. The question for Peter Judge is whether BT will be allowed to do so.

And finally... The ALF (Acoustic Liberation Front) strikes again: Nutzipper, a Swedish clever hacker, claims to have successfully hacked not only the DRM scheme of the Zune, but also its WiFi-based music sharing aspects. The hacker's "Zukebox" allows a Zune owner to browse and download any songs from any other WiFi-enabled Zune's in a given area. It then strips the pilfered MP3s of their DRM restrictions. Report (By the way: There is no such thing as ALF; we have just invented it.)

UK embraces digital age

Mon, 14 Aug 2006 20:01:37 -0400

"There will always be an England," English soldiers sang as they marched to the muddy trenches of the First World War, but it will not be the same England. A just-published Ofcom report says that U.K. citizens adopt the digital age wholeheartedly, as evidenced by the increasing popularity of broadband access, VoIP services and cellular phones.

Ofcom, the British communication regulator, says that more than 10 million British households now have broadband, and that nearly two million of these homes use their broadband for VoIP. The number of public WiFi hotspots has increased from 8,500 in 2004 to nearly 15,000 today. Mobile phone calls now account for 31 percent of all phone calls in the U.K.--up from 28 percent in 2004. This upward digital trend is only going to continue, especially as unbundled local loop services--allowing competing operators to offer customers telephone, broadband, voice, and television over the Internet, in addition to video-on-demand services--are now already available to about 44 percent of the population, up from 34 percent in 2005. This unbundled approach allows customers to pick and choose the services they want, resulting in a larger over-all increase in consumption.

Note: Despite the increase in usage, the average telecom costs for the typical household fell by 5 percent, the result of increasing competition and deregulation.

For more on UK digital trend:
- see Ofcom's report

MORE: Global WLAN chipset sales reached $910 million in 2005, and they are projected to reach $2.3 billion in 2009, according to a recent Frost & Sullivan report. F&S forecasts the global A-GPS chipset sales to grow from $546.3 million in 2005 to $1.4 billion in 2009. Report

ALSO: Ofcom is criticized for the way it has handled the 3G spectrum auction and for the likely effect it will have on 4G. Report

Ofcom mulls increasing WiFi power

Mon, 31 Jul 2006 20:01:37 -0400

The shape of things to come? U.K. telecommunication regulator Ofcom is mulling raising the power limits of WiFi, and the industry welcomes the idea. Hot zone operators, especially, see the contemplated change as giving a mighty boost to the businesses. Ofcom says its proposal was driven by the need to improve spectrum efficiency by broadening the range of devices operating in the spectrum, and by the need to make broadband more available in rural areas. The agency estimates that about 3 percent of the British population has no access to broadband. The reason: The cost of deploying broadband networks in sparsely populated areas.

The proposal involves the 2.4 GHz and 5.8 GHz bands.The latter is more problematic because the U.K. Ministry of Defense (MoD) uses most of it. Ofcom says that MoD has not objected to increasing power in the band to four watts, but such a small increase would not make a meaningful difference for businesses contemplating serving customers in rural areas. MoD is using the bottom two-thirds of the 2.4 GHz band, but even in the upper one-third portion it would be possible to increase power to 10 watts.

The enthusiasm of urban hot spot operators may be premature: Increasing power typically means increased interference. How do you make it more possible to roll out WiFi in rural areas without, at the same, degrading communication quality in urban areas? One idea Ofcom is considering: Allowing increased power to specifically designated rural villages and towns.

For more on Ofcom's proposal:
- take a look at Ofcom's Web site
-and David Meyer's ZDNet UK report

MORE: Bucking the trend: We reported that some coffee shops in Boston turn off their WiFi connections during peak hours in order to discourage table-hogs from coming into the shops for the purpose of using their WiFi service without ordering anything. Last year Glenn Fleishman reported that some coffee shops in Seattle were turning off their WiFi service on weekends for the same reason. Some business owners take exception: Tully's Coffee, which operates coffee shops in Seattle, will begin next Monday to offer free WiFi to customers in hope of attracting more business. Report

ALSO: Boston will turn to a non-profit organization to run city-wide WiFi system. Report

Trend: New mini mobile network operators to emerge

Tue, 21 Feb 2006 19:01:37 -0500

Interesting news from the U.K.: A new breed of mini mobile network operators will start operation later this year. Carriers are watching this development with interest, if not anxiety, and those investing in WiFi gear are also a bit apprehensive. U.K. regulator Ofcom is offering between seven and 12 low-power licenses which would be suitable for wireless communications in premises such as an office. Ofcom says the licenses will be technology and application neutral, but observers expect that they will be mostly used to offer GSM services so that once employees enter their offices, the network picks up their mobile phone and it becomes an office extension. The calls made over the office GSM are routed through a landline at landline prices. When an employee leaves his or her building, their wireless carrier again connects to the phone.

The contemplated system will pose a challenge to WiFi because GSM is already optimized for voice. The quality of calls will thus be better, and there will be no need to change to existing GSM phones. The technology for the new system is already here. Companies such as ip.access, a subsidiary of TTP Communications, offers nanoGSM picocell units which connect with a company's private branch exchange (PBX).

We note the following: First, this is going to be a boon to new companies. There are many problems in scaling down the traditional base station to a low-powered unit, and new companies may be better positioned to do so. ip.access, for example, has developed handset technology to become a base station. It does not even need a separate power supply as it uses power over Ethernet. Second, it remains to be seen whether a typical customer would be eager to risk being cut off from what may be vital calls to their usual mobile numbers as they enter their work GSM cell and leave their wireless carrier. That having been said, the trend is clear: Low-powered wireless base stations offering access to wired networks is the way to go. Just one example: What with VoIP, UMA or VoWiFi posing a growing challenge to wireless carriers revenues, Bath, U.K.-based start-up Picochip has just released a reference design for an ultra-low cost 3G/HSDPA base station for use in a home or small office.

For more on the UK licenses and what they mean:
- read the Computer Business Review report

Ofcom deregulates RFID in 865-868 MHz

Tue, 15 Nov 2005 19:01:35 -0500

The Brits are catching the RFID fever. Ofcom has just decided to make the use of RFID operating in the 865-868 MHz range exempt from licensing. The growing popularity if RFID has created an increasing demand for new spectrum for the technology, particularly from the retail industry in which RFID tags are used to track goods throughout the supply chain and improve in-store security. Ofcom is responsible for the civil use of the radio spectrum in the UK, and the organization has a preference for deregulation as a means to increase the amount of license-exempt spectrum used by businesses to bring new technologies and services to the market.

Today's announcement by the organization means that equipment can be used without a license under the Wireless Telegraphy Act 1949, subject only to regulations intended to minimize potential interference. The recognition of RFID's benefits is not only a matter for the UK: Ofcom's decision follows a recommendation from the Conference of European Post and Telecommunications administrations (CEPT) that additional spectrum should be made available for RFID at 865-868 MHz.

For more on Ofcom's decision:
- see this report