Think 2014 if you’re waiting for 4G in the UK

Ofcom juggles warring operators

The UK is trialling 4G technology, while the rest of the world is deploying it, because our regulator hasn’t the resources to mediate between operators bleating about the injustice of it all.

Like warring siblings the UK’s network operators constantly cry foul, demanding the regulator redress historical grievances and perceived inequalities like a child besieging an overworked parent. But that parent is already failing to meet its commitments, and another round of consultations isn’t going to undo the Gordian Knot of spectrum ownership any quicker.

Then there’s the stuff still hanging on from last year. The national database of radio users, which would enable anyone to identify the owner/use of any radio mast, was supposed to go live in February. After inquiring about that, we were told it would be “in the summer”, then, more than a month ago, “in a couple of weeks”. And still we wait.

Meanwhile the regulator has apparently spent more than 15 months investigating a complaint of dodgy news reporting, and still can’t decide on an appropriate punishment for the guilty party.

But it’s the delay of the mega-auction, selling off bands at 800MHz and 2.6GHz, which is most concerning as it is delaying the UK’s deployment of 4G (LTE) technology – all while the US, Germany and elsewhere move happily along. The UK’s operators like to blame the regulator, but are intransigent to the point of pugilism in insisting that previous (perceived) favouritism be redressed.

That favouritism relates to the allocations of the 900MHz bands, which were awarded to Vodafone and Telefonica (BT Cellnet, as was) for a cheap annual rent, and are now being filled with 3G signals thanks to refarming. T-Mobile and Orange got less-valuable allocations at 1.8GHz, which they could fill with 3G if there were any handsets available. Three got no allocations, so is most voluble in its ranting.

Three reckons it should get priority access to new spectrum, while O2 and Vodafone complain that T-Mobile and Orange (now combined into Everything Everywhere) has too much spectrum and should be restricted in its bidding. EE says it is damned if it is going to sit around watching everyone else buying up spectrum, while BT stands on the sidelines shouting that any coverage obligation attached to the auction would amount to an illegal state subsidy.

Our coverage of that last allegation prompted an interesting response from the Consumer Communications Panel (and an Ofcom email address) explaining that it wasn’t up to BT to decide what was legal or illegal, that (apparently) was Ofcom’s job – which is odd as we thought Parliament hadn’t handed over such power just yet.

We received an even stronger rebuttal when we suggested that there was no workable solution, that no matter what Ofcom proposed it would prompt at least one network operator to see the regulator in court (thus further delaying the auction).

That was apparently pure speculation on our part, though we’d stand by the conclusions even as Ofcom hopes to placate everyone with another round of proposals and discussions. The regulator claims the delay won’t prevent operators building 4G networks in 2013, but it obviously will when the most optimistic date for the auctions is right at the end of 2012. We’d venture a guess that legal challenges will push the UK auction well into 2013, and that we won’t get an LTE signal until 2014 at best.

Unless we’re visiting the US, Germany, France, Sweden, Norway or Canada…

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Tags: 4G, 4G Spectrum Auction, LTE, Mobile Networks, Ofcom, UK

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Ofcom told to use 4G auctions to complete UK coverage

Bring voice if not data to the unconnected, says CCP

Ofcom should look beyond revenue generation for the government and seek firm commitments to the extension of mobile coverage into today’s “not-spots” when it holds the 4G spectrum auctions next year.

So says the Communications Consumer Panel, an advisory board founded by the comms watchdog but independent of it.

The CCP argues that 3m Britons still don’t have any mobile coverage for voice, let alone 2.5G or 3G connections for data. Ofcom should therefore favour 4G bidders who agree to connect these folk, it said today.

Bob Warner, the CCP’s chair, said: “We have a unique opportunity to resolve the persistent problem of inadequate mobile coverage. Most places that were mobile coverage not-spots ten years ago are still not-spots today.

“The spectrum auction presents perhaps the only chance we have in the next decade to improve coverage in the nations and for rural communities.”

He said the watchdog should set coverge obligations on bidders to ensure all parts of the UK gain a minimum level of data connectivity. Other zones of iffy coverage, such as London’s underground, should be connected too.

All good advice, but Ofcom is – alas – under no obligation to take it.

Since the watchdog’s auction terms are likely to be the subject of a legal challenge from at least one carrier or another – the way the UK’s mobile services have rolled out over time has left many axes to be sharpened along the way – provisions for giving all of the UK population coverage seem unlikely to play a part in the auction’s outcome.

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Tags: 4G, 4G Spectrum Auction, Ofcom, UK

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U.K. Carriers Can Now Only Offer Maximum Two-Year Contracts

Independent regulator and competition authority for the UK communications industries, Ofcom, has ruled that, starting yesterday, May 26, as a result of new European telecoms law, no carrier can offer longer than two-year contracts.

The rule applies for both new phone and broadband contracts which starting today will be limited to a maximum of 24 months. Some carriers offered three-year contracts but according to Ofcom regulations, network operators must offer a choice of contract lasting no longer than 12 months. “Shorter contracts are likely to promote competition and enable consumers to switch providers more easily to benefit from better prices and services”. What do you think would be the proper tie-in period for a contract? Is three years too much? How about two years?

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Tags: Mobile Networks, Ofcom, Pay Monthly, UK

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LTE could become available on 900/1800MHz by end of 2011

LTE could be available in the UK sooner than we thought following a decision by the European Commission to open up existing airwaves used for 2G and 3G devices, making them available for use by LTE devices. The EC decision states that the 900 and 1800 MHz spectrum must allow use of these frequencies for LTE devices by the end of 2011. This comes as part of their harmonisation plans to allow EU wide roaming for these kinds of devices.

“This Decision opens the way for the latest 4G mobile devices to gain access to the radio spectrum they need to operate, and so further stimulate high-speed broadband services and foster more competition.”

Neelie Kroes

This will potentially make LTE services available in the UK from the end of the year if Ofcom stick to the EC decision, and adjust national spectrum policy to allow the use of these frequencies by LTE. This date is unlikely to be met though. Ofcom previously opened up the 900MHz 2G frequencies for 3G use in January this year, 15 months after the EC decision to allow this, which required Ofcom to implement the decision within 6 months.

Currently, Ofcom are working to allow LTE from the beginning of 2013, but with restricted use as the 800MHz spectrum will still be used by digital terrestrial TV at that point. LTE spectrum auctions are expected to go ahead in early 2012.

Article: RSS via ThinkBroadband

Tags: 2G, 3G, 4G, 800MHz, 900MHz, EU, LTE, Ofcom, UK

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Report – 76% of mobile users are on the wrong tariff

Think you’re on the right contract ? Most people do, but according to research from Billmonitor three-quarters of customers are chucking £200 per year down the drain.

Nearly all the networks were examined with 28,000 bills getting diagnosed as part of the study. Most were wasting money on incorrect contracts and didn’t change their contract when usage changed. 52% of those on the wrong contract were choosing larger contracts with more “free” minutes and texts but never got close to using them. A further 29% of those on the wrong contract were on a tariff which was too small for them.

The rise of data usage was also revealed, with 5% of customers in the study hitting more than 500MB per month. The average usage was 133MB.

This report and the Billmonitor system has been approved by Ofcom. You can head to their site and compare your bill to get the right contract for your usage.

Links – Billmonitor.com – Report

httpv://www.youtube.com/watch?v=gbdydR14ng0

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Tags: Billmonitor, Bills, Data Plans, Ofcom, Pay Monthly, Postpay

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Why It Pays to Be a Pessimist About Britain’s 4G Sale

Eleven years ago Britain was proudly trumpeting its bright new mobile data future, with an auction of 3G wireless spectrum that broke records by raising more than £22.5 billion ($36.7 billion). It was huge — valued at a higher per capita level than anywhere else on the planet — and welcomed by all sides. The bidders, despite having paid as much as £6 billion, were happy to have won, while the government was rubbing its hands with glee. “It will ensure the UK maintains its position as a world leader in mobile telephony,” said the trade minister at the time.

So today, when the news broke that the even faster 4G spectrum will be auctioned off next year, you might have expected fireworks and champagne. Instead, the response has been relatively muted: analysts expect the sale to raise around £3 billion ($5 billion).

Why?

It’s true that the British have conditioned themselves to be a race of eternally disappointed people, but in this case pessimism about the sale is not misplaced — because there are plenty of good reasons to remain skeptical about the upcoming 4G auction.

It’s not just that the process has already been beset by delays (the auction was originally scheduled for 2008, and last year officials said it would happen in 2011). Britons are hopeful it will definitely happen in 2012, but we’ve been burned before. It is definitely part of the ennui towards 4G.

And it’s not just that the rest of the world has leapfrogged Britain in terms of mobile development, although that’s important too. Rollout of 4G has been most extensive in Scandinavia and the Baltics, with Sweden, Norway, Estonia, Latvia and Lithuania all benefiting from super-speed mobile connectivity. Meanwhile the U.S., which is often seen as a backwater in terms of mobile networking, has seen 4G services launch across some cities, although there is still plenty of debate about what 4G actually is. Even Uzbekistan — Uzbekistan! — is getting in on the action.

Those two factors are important, but the more straightforward reason is that, for all the hype around the 3G auction, the results of that blockbuster sale have been a disappointment.

The rollout of 3G was painstakingly slow. It did not start until 2003, and only continued sporadically after that. By 2008, when the iPhone had ignited the smartphone market and demand for data and connectivity was increasing rapidly, it became apparent that the network provision just wasn’t good enough. In fact, it was so poor in cases that in 2008, regulators said they were prepared to take action against O2 — at the time the country’s largest network — for failing to deliver.

It brought the issue to the fore, but things didn’t improve much as a result: a year later — that’s nine years after the blockbuster auction took place— the map of 3G coverage across Britain looked patchier than a pirate’s face.

Looking back today, it’s clear that there were several factors that pumped up that original 3G auction to abnormal levels and raised expectations.

One of the most crucial decisions back in 2000 was to auction five licenses simultaneously. Given that Britain only had four mobile networks at the time, that made sure that there would be a new entrant in the market — and the rules also said that the incumbents would not be allowed to win the biggest license. This made competition intensify dramatically. The existing networks had to make sure they won a license, at almost any cost, while anyone hoping to enter knew they’d have to beat stiff competition (13 companies ended up bidding, with nine of them effectively competing for a single spot).

The auction also happened at the height of the first dotcom bubble, with the bidding beginning just four days before the Nasdaq reached its peak. Valuations were insanely high, and as a result there was a lot of money to splash around.

So perhaps what we see in the reaction to the 4G auction is not pessimism, but realism. Compared to 2000’s 3G bonanza, any auction of the next generation of wireless spectrum in Britain will be late. Evidence suggests it won’t raise anywhere near the same amount of money. And consumers may have to brace themselves for a slow rollout of services that don’t dramatically change their life.

But perhaps that’s not a bad thing. Back in 2001, Paul Klemperer, a professor economics at Oxford University, wrote a rather scathing paper about the 3G sale.

“Twenty-two and a half billion pounds is a great deal of money to raise for selling air,” he wrote.

When the 4G bidders start the auction, perhaps that’s something worth remembering.

Article: RSS via JkOnTheRun

Tags: 3G, 3G Networks, 4G, 4G Networks, 4G Spectrum Auction, Ofcom, UK

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UK 4G spectrum set to be auctioned off next year

Ofcom, the UK version of the FCC, is currently sitting on two fat bands of prime 4G spectrum, at 800MHz and 2.6GHz, but it won’t be doing so for long. This morning has seen an announcement from the independent regulator that it’s looking to sell off those airwaves to the highest bidder, as early as 2012, pending the conclusion of a consultation on how to ensure the auction helps promote, rather than stifle, competiton. The 800MHz band comes directly from spectrum freed up by the country’s transition to digital television, and together with the 2.6GHz is equivalent to three quarters of all the mobile spectrum the UK uses today. The usual suspects of O2, Vodafone and Everything Everywhere will be vying for prime position in the next wave of superspeedy internet … we just wonder how 3G-centric network Three will react to the news.

Article: RSS via Engadget

Tags: 3G, 3G Networks, 4G, 4G Networks, 4G Spectrum Auction, Everything Everywhere, O2, Ofcom, Three, UK, Vodafone

Posted in 3 / Three, 3G, 4G, O2, Orange, T-Mobile, Vodafone | No Comments »

O2 switches on 900MHz 3G network in London

O2 is reportedly the first UK mobile operator to deploy a new “superfast” 3G network in London using 900MHz spectrum. The carrier is taking advantage of new regulations around spectrum refarming and its new network (called 3G900) is expected to deliver a 50% increase in capacity compared to O2′s existing 3G network. On average, it is said that O2′s 3G customers on the new network are seeing a 30% increase in data speeds.

The London launch follows similar launches in other cities, including Leeds, Birmingham and Manchester, with other cities set to follow in the coming months.

Commenting on the news, O2′s CTO Nigel Purdy said: “This 3G900 switch-on is the latest in a series of network enhancements for O2, and is a first for the UK and Telefónica.”

As a reminder, UK regulator Ofcom gave the go-ahead for the country’s operators to begin re-farming their existing 2G spectrum for 3G use in January to encourage mobile broadband rollout.

Article: RSS via IntoMobile

Tags: 3G, 3G Networks, 3G900, Mobile Broadband, O2, Ofcom

Posted in 3G, Mobile Broadband, O2 | No Comments »

Ofcom orders £2.5 million Tiscali and Talk Talk refund

Good will payments for customers

Back in November, Tiscali and Talk Talk were summoned to the Ofcom’s office for a firm telling off after breaching rules that are in place to protect consumers. And now the financial implications their misbehaviours have been disclose – and it’s a definite “ouch” for the communication companies’ pockets.

£2.5 million in refunds and good will payments have been handed out by the naughty twosome after thousands of consumers were incorrectly billed for cancelled services.

The move followed more than 1,000 complaints from customers and, although both Tiscali and Talk Talk have now taken “significant steps” to fix the problem, the investigation is continuing as Ofcom is still receiving complaints from customers.

In one case a customer who complained to Ofcom that he had cancelled his broadband account with Tiscali UK in 2008, but was still being billed 2 years later and was contacted by a debt collection company saying he owed £353.99.

Ofcom doesn’t currently have the power to impose a financial penalty but the Government is looking into law changes that would give the communications watchdog more legal clout and these changes could be in place by 25 May 2011.

If you’ve been affected by Talk Talk or Tiscali in this issue then you can call the companies directly on their dedicated hotline – 0800 5428 073 – or take the Alternative Dispute Resolution path.

httpv://www.youtube.com/watch?v=dMatPqH2n4k

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Tags: Ofcom, TalkTalk, Tiscali

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0800 numbers to be free from mobiles following Ofcom proposals

Major overhaul on geographic and premium rates as well

Communications watchdog Ofcom has put forward proposals that will see 0800 numbers becoming free on mobile phones.

Currently mobile users can pay up to 40p a minute to call the toll-free standard, but the new proposals seem set to scrap that.

Under the proposals, Ofcom has also called for more transparency over the prices of calling 118 and non-geographic business numbers, with “clearer marketing and advertising” requested, whereby customers will be informed when they take out network contracts of exactly what they’ll be expected to pay.

Ofcom has also appealed for businesses to take advantage of the 03 geographic code, that was introduced in 2007, which is on the same price structure as standard 01 and 02 landlines.

Ed Richards, chief executive of Ofcom, said: “There is clear evidence of widespread uncertainty and confusion about the cost of calling these numbers. Consumers need to have far more transparency about the price they are going to pay for calls so that they can make more informed choices and so competition can work more effectively.

“Making 0800 free from a mobile and giving people clarity about what they are paying for 118 directory enquiry services will improve transparency, improve competition and enhance trust in these important services”.

You can read the full Ofcom consultation (PDF) on its website.

The proposals are based on new powers which will be introduced as a result of revised European telecoms legislation.

We’ll keep you posted as to if and when these proposals become a reality.

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Tags: 0800 Numbers, 118, Mobile Phones, Non-Geographic Numbers, Ofcom

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