U.K. Regulator to Allow LTE in all Mobile Frequency Bands

Ofcom, the U.K. communications regulator, now is proposing to allow use of Long Term Evolution air interfaces in the existing 900 MHz, 1800 MHz and 2100 MHz bands to permit the deployment of 4G services.

The new LTE spectrum auctions will use the 800 MHz and 2.6 GHz bands.

The new rules would mean no restrictions on which air interfaces have to be used in each frequency band. That could become an important issue if one of the expected four leading winners of new LTE spectrum should be shut out, in part, or completely, in the current LTE spectrum auctions. 

As always, spectrum auctions could have market-reshaping implications, either allowing new competitors to enter, or changing the strategic relationships between leading providers. But there is an important potential element: it is not clear there is enough spectrum for all four current leading mobile service providers to win new spectrum. 

In fact, it seems likely that only three of four can win the auctions for coveted 800-MHz spectrum best suited for national networks. 

That failure to win spectrum could put the loser at a severe disadvantage, compared to the other three leaders who win spectrum, it goes without saying.
Ofcom also will propose allowing an increase of 100 percent (3 decibels) in transmit power of radios in the 900 MHz frequency band for UMTS (3G) technology, as requested by Telefónica and Vodafone.

Such regulation by function has been a staple of licensing in many countries, including the United States, which explains why Clearwire had to ask for Federal Communications Commission permission to use its mobile satellite spectrum to support a terrestrial LTE mobile network.

The changes would allow all the major mobile operators to make business decisions about whether to transition their current networks to LTE based solely on business considerations.

The decision also means that, should one of the four leading U.K. service providers fail to win LTE spectrum in the current auctions, that firm would still be able to offer LTE using its existing spectrum.

While not as easy as deploying a network using brand-new spectrum, the change in Ofcom rules would protect any one of the four major firms from being shut out of the LTE business.