Europe Prepares for 2.6 GHz Spectrum Feeding Frenzy

European operators are eagerly anticipating the 2.5-2.6 GHz auctions planned for the next two years.

By Jeff Orr, Senior Analyst - Consumer Electronics

Contact the author at jeff@maravedis-bwa.com

Twenty-seven months after the first WiMAX products achieved certification, the first Mobile WiMAX The FCC’s auction of 700 MHz spectrum in January received significant attention for its record revenue levels and prospect for superior propagation characteristics. Not to be outdone, European operators are eagerly anticipating the 2.5-2.6 GHz auctions planned for the next two years. The refarmed band covers nearly 200 MHz of valuable real estate. However, not every EU country is ready to move ahead. Current licensees occupy the band in some markets, while a technology battle over how to efficiently allocate spectrum threatens to fragment the member countries.

The airwaves in question cover 2500-2690 MHz, more commonly known as the 2.5 GHz or 2.6 GHz band. A philosophical war remains heated between developers of infrastructure and devices that utilize spectrum differently. Cellular voice networks have favored a duplexing method called Frequency Division Duplexing (FDD), where two chunks of spectrum are used separately for an equal amount of uplink and downlink communication. The alternative is Time Division Duplexing (TDD), where a percentage of time determines how uplink and downlink traffic share a single spectrum channel. TDD tends to mimic traffic patterns found through Internet applications where requests for information outweigh sending data upstream. FDD proponents argue that consumer behavior will generate an equal amount of traffic in both directions over time. Rather than exclude one or the other, European officials have devised a plan to allocate both in upcoming 2.5 GHz auctions.

Norway completed its 2.5 GHz auction in November 2007. The Norwegian Post and Telecommunications Authority (NPT) issued licenses to five companies, including: Arctic Wireless AS, Craig Wireless Systems Ltd, Hafslund Telekom AS, NetCom AS, a subsidiary of TeliaSonera AB, and Telenor ASA. License prices totaled NOK 228,881,000.

Sweden was the first EU member state to conclude a 2.6 GHz sale. Up for grabs were 14 channels of paired 5 MHz FDD spectrum and a single unpaired swath of 50 MHz for TDD use nestled between the upper and lower FDD channels. The allocation followed a CEPT (European Conference of Postal and Telecommunications Administrations) definition for harmonized spectrum across the European Communities. The CEPT harmonization enables non-conflicting allocation for both TDD and FDD operation.

The Swedish Post and Telecom Agency raised a total of SEK 2.1 billion (USD 346 million) by awarding licenses to:

• Tele2 Sverige AB (4 FDD channels)
• HI3G Access AB (2 FDD channels)
• Telia Sonera Mobile Networks AB (4 FDD channels)
• Telenor Sverige AB (4 FDD channels)
• Intel Capital (1 TDD channel)

The Swedish auction was the first foray of chipmaker Intel into the business of spectrum ownership. Unlike the other four licensees, Intel has no aspirations to launch its own mobile network. Instead, the investment most likely secures room for new WiMAX carriers to lease access from the company.

Several EU countries, including Austria, France, Germany, Italy, the Netherlands, Portugal, Spain and the United Kingdom are preparing for similar auctions from 2008-2010 in anticipation of next-generation mobile networks. The occupation of prior users at 2.6 GHz could pose a challenge for commencing auctions in some countries. Austria anticipates prior users clearing before the close of 2008, making possible an auction no sooner than end-of-year. France’s Ministry of Defense has rights to the band until 2015, though it may be able to abandon use by 2010. Similarly, Italy’s military utilizes 2.6 GHz. A consultation on prospects for future commercial access is planned for this year. Germany faces a slightly different issue – litigation. Prior user licenses expired last year, but a legal battle has postponed setting an auction date.

Remaining countries are turning the crank on governmental processes to ready their auctions. The Netherlands is planning for a Q3’2008 auction. OFCOM announced a September date for the UK event. Neither Portugal nor Spain has set an auction date yet. Consultations and the on-going refarming of users is keeping regulator agendas occupied.

Is the harmonized 2.6 GHz allocation a missed opportunity for WiMAX operators? Current certification profiles for 802.16e-2005 systems are limited to TDD schemes. While the 50 MHz TDD block recommended by CEPT is nothing to scoff at, mobile WiMAX systems are not invited to play in the 140 MHz sandbox dedicated to FDD systems. The WiMAX Forum certification program has plans to address this gap during 2009. An interim certification program will enable flexibility for multiple duplexing methods and the creation of new certification profiles. 3GPP LTE systems are also anticipated to support either TDD or FDD methodology.

ETSI (European Telecommunications Standards Institute) began the approvals process earlier this month for mobile WiMAX (IEEE 802.16e-2005) to become an official 2.6 GHz technology. The effort is seen as another win for the WiMAX camp. Last year, the ecosystem vendors succeeded in having the ITU recognize the mobile broadband standard as an IMT-2000 technology at the World Radio Congress (WRC). The ETSI process enacts that recommendation on a European regional level. CEPT was responsible for the formation of ETSI in 1988.

HSPA and LTE promoters are also posturing solutions that align with the CEPT harmonization. Mobile pioneers, including Sweden’s Ericsson, promote the 2.6 GHz plan as a greenfield for next-generation mobile broadband colonization. The developer says its portfolio of HSPA products and its LTE development are capable of supporting the CEPT FDD allocation.

The pursuit of harmonized spectrum across the region is a welcome gesture in preparation for new mobile broadband service introduction over the next three to five years. Equipment, developed around a common set of requirements, can be engineered and manufactured with minimal radio variations. Multiple categories of devices and services will emerge that utilize the same spectrum in new and flexible ways. The foresight of the CEPT recommendation appeals to multiple parts of the supply chain and ultimately benefits Europe’s mobile subscribers.

For more information you can contact the author: jeff@maravedis-bwa.com

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