EU Approves Release of 900-Mhz GSM Spectrum for Mobile Broadband

The EU has approved plans to liberate radio spectrum in the 900-sMHz band, which is currently reserved for mobile 2G GSM networks. EU member states have voted to free up the largely defunct bandwidth for use in providing next-generation mobile services and encouraging the roll-out of mobile broadband services across the bloc.

The vote effectively removes the last obstacle to the re-allocation of the spectrum, as the European Parliament and the commission has already given the proposals the green light, and many domestic regulators have already begun the process of reallocating the frequencies.

The vote will give member states the freedom to distribute the bandwidth, as long as this does not encroach on GSM services still in use, from the start of October this year.

Outlook and Implications

• A Boost for Mobile Broadband in Europe: The vote effectively completes the series of reforms to European spectrum legislation - the so-called GSM Directive—and will allow for swifter, simpler, and cheaper deployment of 3G mobile technologies such as UMTS and WCDMA, and future next-generation 4G services. EU telecoms commissioner Viviane Reding stated that the reform will remove constraints on operators so that they can deploy new technologies in the GSM bands to develop high-speed mobile broadband services, and pave the way for a new generation of services and technologies where Europe can be a world leader. However, in the EU countries there are already three commercial UMTS900 networks launched to date: in Finland (Elisa, DNA), Estonia (Elisa), and Belgium (Mobistar). In Finland, Elisa's network has been active since November 2007, and covers most of the country. Elsewhere however, the process of reallocating the 900MHz band is already well underway in Europe, with Sweden having already licensed the spectrum (see Sweden: 18 March 2009: 900-MHz Spectrum Awarded to Hi3G and Existing GSM Operators), and Belgium launching a tender later this year (see Belgium: 30 March 2009: Belgian Regulator Set to Sell Fourth Mobile Licence this Year). The United Kingdom and France also have plans for such a tender (see United Kingdom: 16 February 2009: Ofcom Proposes 900-MHz Spectrum Release to Boost Mobile Broadband and France: 6 March 2009: Regulator Sets June Deadline for 3G Spectrum Bid as Bouygues Drops Out), and many other countries have been waiting for the EU nod before moving ahead with licensing. The European Commission estimates that around 92 million people use 3G mobile services in the EU—and hopes the reallocation of this spectrum will move this number closer to the 500 million users of GSM services in the bloc.

• Lower Infrastructure Costs Mean Operator Savings: The EU Commission says it estimates the spectrum release will save the telecoms industry up to 1.6 billion euro (US$2.28 billion), as operators will need to invest less in infrastructure to bring mobile broadband services to larger areas. The 900MHz band has a higher range than higher frequency mobile broadband bandwidths such as 1,800MHz or 2.1GHz, meaning fewer base stations will be required to cover the same geographical area. The technology also means existing GSM infrastructure will need minimal upgrades to allow it to provide 3G services, providing a boost for smaller operators who may not be able to afford to roll out 3G networks by themselves. The new EU legislation should also make it easier to adapt spectrum allocation in the 900MHz band to allow even newer 4G high-speed broadband technologies to be deployed. Although some operators may rue the loss of former 2G bandwidths they have paid a great deal for, the EU is likely to ensure they are adequately compensated for this, and most would agree that the development of mobile broadband services is preferable to holding onto defunct spectrum. The release of the spectrum will allow operators across Europe to swiftly and cheaply roll out 3G broadband networks, and increase both coverage and competition in this burgeoning market.

• The Advantages of 900-MHz Bandwidth: Elsewhere, attempts to make use of lower bandwidth spectrum have stalled due to fears over network congestion. In the United States, AT&T has offered 3G services in the 850-MHz frequency for years, but this has not been available in major cities (see United States: 28 May 2009: AT&T Outlines Plans to Upgrade to 7.2 Mbps Mobile Network), although in Thailand, 3G network roll-out in the 900-MHz range has been delayed to avoid congestion (see Thailand: 5 June 2009: AIS Delays 900MHz 3G Network Expansion to Avoid Spectrum Congestion). However, in Europe the vast majority of users have already migrated to 3G networks. As well as allowing cheaper and relatively easy upgrades of existing GSM network infrastructure to provide 3G mobile broadband services, the licensing terms of the 900MHz bandwidth state that allocation won't be dependent on a particular format or technology—meaning the spectrum can be used to provide upcoming 4G services like long-term evolution (LTE). As well as liberating the bandwidth, the EU has chosen to allow operators freedom to choose how to make best use of the spectrum, providing an open and competitive landscape for the development of mobile services in Europe.