UK operators will be able to refarm their 2G and 3G spectrum for LTE, in a further liberalization by regulator Ofcom. Although market leader EE was controversially allowed to repurpose its 1.8GHz GSM frequencies last year, enabling it to leapfrog its rivals in launching LTE, this was a special case. But now, Ofcom has come into line with European directives and will permit refarming, without a formal application process, in the 2G and 3G bands.
In reality, EE holds the most attractive frequencies for short term LTE roll-out. It is the only UK carrier to run its GSM networks in 1.8GHz, though it is transferring 25% of this spectrum to the smallest cellco, 3UK, as a condition of its 2010 merger (of the UK arms of Orange and T-Mobile). The 1.8GHz band has attracted considerable operator and device support worldwide as an LTE option, especially for carriers which are waiting for new spectrum to be made available, or missed out on the best frequencies at auction. It offers a good balance between the range and penetration of low frequencies and the capacity of the higher bands.
By contrast, the 900MHz GSM band, in which Vodafone and O2 run their 2G networks, has limited capacity and has, so far, been used only by a handful of operators for LTE trials or deployments. This means it will be slower to develop a robust device ecosystem and economies of scale. The same is true of the 2.1GHz band, in which all four UK cellcos run 3G services. Although this can now be refarmed for LTE, there is a very limited device or roaming platform round the world, since most carriers will maintain and expand their 3G networks for years to come.
However, these moves by Ofcom and other European regulators add to the liberalization of the region in terms of carriers’ ability to decide on their own strategies and technologies, rather than being regulated by governments. Operators were already allowed to refarm 2G spectrum for 3G.
Ofcom is also allowing an increase in the maximum permitted base station transmit power in the 900MHz band, from 62dBm EIRP to 65dBm, when the spectrum is being used for 3G and 4G networks. The agency is still considering separate requests to lift the power output levels for base stations in the 1.8GHz band, and in 800MHz, the digital dividend spectrum newly awarded for LTE.
Ofcom said in a statement that it had evaluated the competitive issues during its consultation period and decided ‘the benefits to consumers of permitting 4G deployment were likely to outweigh any potential detriment that might, in principle, arise from distortions to competition’.
It has also changed the previous requirement that 80% of the population should be offered 3G services in 2.1GHz, as that could now limit the ability to offer 3G services using lower frequencies, which could be a strong solution in underserved rural areas. The general requirement for 90% coverage remains, but any combination of bands could be used to achieve that.
Separately, Huawei has released a report it commissioned from EcrossH, entitled ‘UK Radio Spectrum Report’, which says there is consensus among the country’s cellcos that, following this year’s 4G auction, there is now sufficient spectrum available to meet their requirements over the short to medium term. However additional spectrum will be required before 2020 and even more in the years after that.
Report author Steve Roper is urging Ofcom to plan ahead and identify the most likely bands for future refarming. He said in a statement: ‘Not all radio spectrum is the same and it is essential that mobile network operators have access to spectrum across a wide range of frequencies. This is like having the correct tool for the job. We have to start preparing for this now. Planning and delivering spectrum refarming projects takes time ‘ the digital TV switchover, for example, took six years.’
The study pinpoints five bands with strong potential for refarming for mobile broadband ‘ the TV broadcast band; L-band and S-band satellite frequencies; the Air Traffic Control Band (2700-2900MHz); and the Satellite Services band (3400-4200MHz). In some areas, sharing between new mobile broadband services and the incumbent users may be possible, as in C-band satellite frequencies. Some of these options are already being explored by Ofcom as part of its ‘5G’ consultation process.