Ofcom Expands 4G Proposals

Ofcom has made a series of proposals for making 4G mobile spectrum available in the UK, including measures to extend coverage to at least 98 per cent of the UK population. These are revisions of proposals the telecoms regulator made last year regarding the spectrum, currently used for analogue television, which will be cleared as a result of the digital switchover. Equivalent to three quarters of the current mobile spectrum, Ofcom has attached a special condition proposing that this should be made available to mobile operators for 4G deployment.

Ofcom says it believes that consumers are more likely to receive better services at lower prices in the future if there are at least four national wholesalers of mobile services. Stakeholders have 10 weeks to respond to Ofcom’s revised proposals.

“This is a crucial step in preparing for the most significant spectrum release in the UK for many years. The proposals published today will influence the provision of services to consumers for the next decade and beyond,” says Ofcom Chief Executive, Ed Richards. “The UK benefits from being one of the most competitive mobile phone markets in Europe. This means that consumers pay less for mobile communications services and have the choice to shop around for packages that suit them best. As the UK enters a new generation of mobile communications, Ofcom’s objective is to promote effective competition and to stimulate both investment and innovation. In addition we are proposing a significant enhancement of mobile broadband, extending 4G coverage beyond levels of existing 2G coverage – helping to serve many areas of the UK that have traditionally been underserved by network coverage.”

Ofcom is also proposing that some spectrum in the 2.6GHz band is reserved to deliver innovative mobile services for consumers – potential applications include local mobile networks for student campuses, hospitals or commercial offices, which operate on short-range frequencies serving a small area.

“Ofcom proposes to have a coverage obligation with one of the licences equivalent to providing 2Mbps indoor coverage to 98 per cent of the population; up from 95 per cent in earlier proposals set out last year,” says Brian Potterill, director of telecoms strategy at PwC. “This additional 3 per cent is important, as it is to these households that it is proving particularly difficult and expensive to reach with the super fast broadband that is now widely being deployed in cities. This increase in coverage obligation is, in part, due to the Governments recent decision to invest £150m to improve mobile coverage in rural areas. Ofcom proposes to link the award of this £150m funding to the award of the licence with the coverage obligation. This should provide a welcome boost to rural broadband, and is a pragmatic response to this important challenge.”