October 28, 2009 E.U. Plan Could Lead to Lower Cost International Calls By KEVIN J. O'BRIEN NY Times
http://www.nytimes.com/2009/10/28/technology/28spectrum.html?ref=business&pagewanted=print BERLIN — The European Commission will urge the 27 European Union countries Wednesday to reserve a uniform slice of broadcast spectrum for a pan-European mobile broadband network, one that could enable flat-rate, international voice and data calling plans. A copy of the proposal, reviewed by the International Herald Tribune, sets out technical guidelines for E.U. countries that choose to redeploy part of their low-frequency spectrum, a bandwidth that has been used exclusively by television broadcasters since the inception of the industry more than 50 years ago. Whether E.U. countries heed the advice of its executive body and lay the groundwork for a blocwide wireless market remains to be seen. But an architect of the plan and an analyst who follows the industry said they expected most E.U. countries to embrace the recommendation. “I think in the end most, if not all, E.U. countries will follow this,” said Daniel Pataki, the chief telecommunications regulator of Hungary who is chairman of a technical advisory panel to the commission called the Radio Spectrum Policy Group, which helped draft the proposal. But a spokesman for European television broadcasters said the proposal did not address the main concerns of broadcasters — that they would be left with too little spectrum to broadcast in high definition, or to sell two-way services. “I don’t think this proposal is a good compromise,” said Lieven Vermaele, the technical director of the European Broadcasting Union, based in Geneva. The bandwidth is being freed as E.U. countries convert television broadcasts from analogue to digital, which requires less spectrum, in a process that is to be completed by the end of 2012. Larger countries like Germany, France and Spain are considered likely to redeploy their spectrum to bring high-speed mobile broadband to rural areas, where service does not exist or is spotty and slow. Densely populated countries that already have blanket coverage, like Denmark, Luxembourg and the Netherlands, are also likely to redeploy the spectrum because it would enable wireless operators deliver services at lower cost. Sweden, Britain and France are considering diverting some spectrum to mobile use and Germany is planning to auction off spectrum by the end of next June. The proposal by the European Commission lays out technical guidelines for countries to redeploy spectrum in the 790-862 megahertz range. A year ago, plans to redeploy spectrum to mobile operators drew strong opposition from E.U. broadcasters, some of which are state-owned. But, according to a member of the advisory panel, who did not want to be named for fear of jeopardizing the fragile negotiations, a compromise was reached over the past year with broadcasters to limit the amount of bandwidth diverted to mobile operators to 72 megahertz, down from the 120 megahertz initially sought by the mobile industry. That should leave enough spectrum for broadcasters and mobile operators, the panel member said. Lower-frequency spectrum has great commercial value to mobile operators and TV broadcasters because signals in this range can penetrate buildings and other man-made objects, reducing the need for more base stations. Broadcasters say they need the spectrum for new, bandwidth-intensive high-definition TV and interactive services they are planning. But political momentum swung toward the mobile industry over the past year, according to one analyst, as the commission began looking to the wireless industry as a jobs generator during the economic slowdown. According to the commission, an E.U.-wide wireless broadband network would generate €20 billion to €50 billion, or $30 billion to $75 billion, in new economic activity through network construction and on-line businesses set up by residents in rural areas. The established mobile operators are seen as the most likely to bid for lower-frequency spectrum. “I think most countries are going to evaluate how to open up their ‘digital dividend’ spectrum to mobile broadband because it will be a more cost-effective way to serve their customers in the future,” said Luis Enriquez, an analyst at McKinsey in Brussels. In the end, said Mr. Pataki, each E.U. country must decide for itself whether to redeploy spectrum for mobile broadband. The commission’s proposal is not binding on E.U. countries, Mr. Pataki noted. “But I think that most will see the benefits outweigh the disadvantages,” he said. -- ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
