Wireless market opens up

Telecoms regulator Ofcom will relax restrictions on the use of certain licensed wireless radio frequencies over the next few years, potentially paving the way for the introduction of new fixed wireless and mobile broadband data services in the UK.

Ofcom this month announced that a number of companies and individuals, currently holding licences to operate wireless transmission services will be allowed to buy and sell their rights in an open market. Trading in the first classes of licence will be permitted from the end of this year.

The development of fixed wireless and mobile broadband services that are based on technologies such as third-generation (3G) UMTS has been held back due to a number of factors. These have included the limited availability of wireless frequency spectrum and inflexible licensing conditions, which prevented operators from reselling their bandwidth to other carriers or using their licensed frequencies for purposes other than those specified at the time of auction.

For example, despite the sale of licences to operate fixed wireless data services in regions of the UK, licence holders have so far failed to provide any services based on the bandwidth they have bought.

In September, Ofcom will publish a detailed consultation on spectrum liberalisation, setting out proposals for removing unnecessary restrictions on licences, so that licensees can change the use of spectrum. Ofcom said liberalisation would be introduced in phases for most types of licences between 2004 and 2007.

Ofcom chief executive Stephen Carter said, "Access to a flexible and transparent market coupled with the ability to explore innovative uses for existing spectrum will maximise the effective use of a finite national resource."

Spectrum trading and liberalisation will begin in December with the following licence classes: analogue public-access mobile radio, national paging, data networks, national and regional private business radio, common base stations, fixed wireless access, scanning telemetry and fixed terrestrial links.

Ofcom said while the changes were taking place it would continue to auction newly released and returned spectrum allocations as usual.

Trading in 2G and 3G licences is slated to begin in 2007. But Ofcom spokesman Ed Knight said, "Although a date has been fixed on paper, this will be subject to consultation and review." He added, "We're trying for a lightly timetabled, phased approach to trading."

For the latest news for IT professionals, visit ITWeek.co.uk