Arqiva in the UK is considering bidding for spectrum in the UK’s 2.5 to 2.69 GHz and even the 1452-1492 MHz L band auctions, to be held next year, with a view to becoming a wholesaler. If it gained 2.5GHz spectrum, it would most likely adopt WiMAX and then support a range of third party providers with innovative business models, an approach heavily advocated by the internet community, and particularly, in the US, by Google. Meanwhile, the L band spectrum is likely to be of interest for mobile TV services.
Arqiva, which owns a network of cell sites and towers in the UK, primarily serves the broadcast media industry and offers tower and mast space to cellular operators. It wants to expand into related but higher margin activities such as designing, building, owning, operating and managing wireless networks, a business also of interest to major equipment vendors like Ericsson.
Tim Cook, business development manager for wireless solutions at Arqiva, told journalists at Unstrung: “We want to provide not just a rate card of something to hang off a mast. We want to be the wholesale network operator for a mobile TV consortium or operator… a wholesale ‘WiMaxCo’ model is something we would also consider.” If BT secures a 2.5GHz license, it has also indicated that it would use its network for both retail and wholesale models, probably building out with WiMAX.
With UK operators increasingly interested in saving cost and risk through RAN sharing (sharing infrastructure), there is a logical trend towards the eventual consolidation of physical wireless networks in the hands of a few wholesalers, as has happened in other utilities once they gain maturity.